Transcript Korea's Policy Direction for R&D and Dissemination of

Korea's Policy Direction for
R&D and Dissemination of
New & Renewable Energy
November, 2002
Korea Energy Management Corporation
Contents
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
Facts about Rep.of Korea
Major Energy Statistics
Status of New & Renewable Energy
History of NRE Policies
Investments for NRE R&D and
Dissemination
R&D and Dissemination Policy Directions
R&D Strategies
Establishment of Infrastructure
Measures for Technology Dissemination
2
 Facts about Rep. of Korea 

Population : Approx. 46 Mil.

Area : 99,600 km2

Primary Energy Consumption (’01) :
198 Mil toe

GDP : $411 Bil. (’01)

Economic Growth Rate(’01) : 3.5%
Major Energy Statistics
’96
’96
’97
’97
’98
’98
’99
’99
’00
’00
’01(*)
’01
GDP Growth (%)
6.8
5.0
-6.7
10.9
8.8
3.5
Primary Energy
Consumption
Growth (%)
9.8
5.9
-8.1
9.3
6.4
4.03
Energy/GDP
Elasticity
1.44
1.86
1.21
0.85
0.72
0.68
Overseas
Overseas
Dependency(%)
(%)
Dependency
97.3
97.6
97.1
97.2
97.3
97.4
4
Status of New & Renewable Energy
- Consumption of NRE by Year (Unit : 1,000 TOE)
’00
’00
’01
’01*
Annual
Growth Rate (%)
’98
’98
’99
’99
Primary
Energy
Consumption
165,932
181,363
NRE Consumption
1,716
1,901
2,131
2,457
11.5
Share
Share
(%) (%)
1.03
1.05
1.11
1.24
-
192,887 198,285
5.8
5
History of NRE Policies

Promulgation of the Promotion Act for the New and
Renewable Energy(NRE) Development (1987)

10-year National Plan for Energy Technology
Development (1997)

Basic Plan for NRE Technology Development and
Dissemination (2001)

Amendment of the Promotion Act for NRE Development,
Utilization & Dissemination (2002)
6
Definition of NRE

Renewable Energy
 Solar Thermal
 Photovoltaics
 Biomass
 Wind
 Small Hydropower
 Geo Thermal
 Ocean Energy
 Waste

New Energy
 Fuel Cell
 Coal Liquefaction &
Gasification
 Hydrogen Energy
7
Investments for NRE R&D and
Dissemination
(Unit : Million Won)
’88∼’98
’88∼’98
’99
’00
’01
’02(**)
’02
Total
Total
R&D
R&D
137,832
18,201
18,192
29,125
32,745
236,095
DemonDemonstration
10,817
5,568
9,130
23,231
23,539
72,285
Loans
Loans
247,741
14,322
11,707
8,498
23,400
305,668
Total
Total
396,390
38,091
39,029
60,854
79,684
614,048
stration(*)
Estimates for the Year 2002
8
Dissemination Record of NRE by
Sources
AREA
Solar
Thermal
PV
Wind
Biomass
Waste
Small Hydro
Dissemination
Supply
Ratio(%)
Approx. 190,000 Solar Hot Water System
1.6
5,540 ㎾ of 12,000 Units, in Hawa and
Mara Island, etc
0.3
7,700 ㎾ of 22 units, in Cheju Island
0.1
90 unit of Alcohol and Food Industry, etc
3.3
437 Incinerators, in Seoul, etc
93.9
39 MW of 27 Units, in Kangwon
Kyeongbuk Province, etc
0.8
9
R&D and Dissemination Policy
Directions

Diversification of Energy Sources by Increase of
New
and Renewable Energy Supply

Promotion of Technology R&D for Coping with
UNFCCC
 Designation of Priority R&D Areas and Concentrated
Support for the Target of 2.0% of Supply by 2003
 Active Assistance for Market Deployment of
Developed Technologies
10
R&D Strategies

Goal : Maximization of R&D Investment Effect by
Priority Selection and Concentration
 3 High-Priority Areas : Photovoltaics, Wind Power, Fuel Cell

R&D Plan of 3 High-Priority Areas by 2004
 Photovoltaics : To Develop 3㎾ Generation System for
Residential Houses
 Wind Power : To Develop 750㎾ Wind Power System
 Fuel Cell : To Develop 250㎾ MCFC (by 2006) and 3㎾
PEMFC System
11
Establishment of Infrastructure

Ways to Secure Reliability of Developed Technologies
before Dissemination
 Performance Evaluation
• Standardization of Technologies
• Establishment of New & Renewable Energy
Evaluation Center
• Introduction of Technology Accreditation and
Certification System
 Demonstration Projects
• Demonstration Complexes (Wind Power , Solar)
• Monitoring of Products and Technologies
12
Measures for
Technology Dissemination

Economic and Financial Support
 Compensation for the Difference between Generation
cost and Selling Prices (Preferential Prices)
 Subsidies and Low-interest Loans
 Tax Reduction and Deduction

Enhancement of Public Awareness
 Establishment of 5 Demonstration Town "Green Village"
by 2003
 Obligatory Installation and Utilization in Public
Organizations
 Regional Energy Program
13
Compensation for Cost
Difference
of NRE Power Generation

The government compensates cost difference between
the buying price of electricity company and the standard
price of NRE power generation to support NRE power
generation. (From 2002, 3.5 billion won)

Object : PV, Wind, Small Hydro, LFG, Waste,
Fuel Cell
14
Loan Program for NRE
Equipment

Providing low-interest loans to installers of NRE
equipments by the government (2002 : 23.4 Billion Won)
 Interest Rate : Annual Rate of 4.75%, Floating Rate
 The term of Repayment : Repayment in 5-year
monthly equal installment with 3-year grace period
15
Model Dissemination Program

To secure the marketability of NRE after technology
development, 70% of installation costs subsidized
(2002 : 1.2 billion won).

Total 7.2 billion won of subsidies from 1993 to
2001
 PV Power Generation System : 25 Units
 Solar Thermal Hot Water System : 86 Units
 Bio-Methane Generation System : 2 Units
16
Regional Energy Program

The government subsidizes 70% of installation
costs through the regional energy program to
local governments. (2002 : 17 billion won)

Total 33.2 billion won of subsidies by the
government from 1998 to 2001
17
Improvement of Legal System

Revision of the “New and Renewable Energy
Development & Promotion Act"
 Preferential Purchasing System for Electricity Generated by NRE
 Obligatory Installation and Utilization in Public Organizations
 New & Renewable Energy Accreditation and Certification System

Establishment of Korea Alternative Energy Association
(Sep., 2001)
18