Solar energy market in Korea will focus on built environment
Although over the next two years it will be placing a quota on the over-successful feed-in tariff program started in 2008, other incentives and support programs have been introduced to push the application of solar PV.
The Korean government’s vision of “Green & Growth” has been picked up by the multinational conglomerates Samsung and Hyundai. Both have taken the first step toward the mass production of solar cells and modules. Following their strategy in consumer electronics, these multinationals are determined to play a major role in the global solar industry. According to a PV study report by Solarplaza, the Korean government is also keen to develop its domestic PV market.
Although over the next two years it will be placing a quota on the over-successful feed-in tariff program started in 2008, other incentives and support programs have been introduced to push the application of solar PV. The forecast market size in 2009 is around 98 MWp, increasing to 132 by 2010. As in many European countries, PV in the built environment has priority above large-scale PV power plants.
The current feed-in tariff is still very attractive to households when considering the low module prices on the world market. Furthermore, the one million green homes program (2009-2020) promotes the development of smart-system and zero-energy houses. For 400,000 households allocated to the program, 60% of the total cost of solar PV installation will be borne by the government. It is anticipated that demand for 3kW rooftop systems will increase exponentially. New office buildings will have to invest a mandatory 5% of the total project budget in terms of renewable energy facilities. Other measures include a PV loan program, a tax incentive program, and a renewable portfolio agreement with 9 energy utilities.
Over the longer term–by 2012–the government plans to introduce a new mandatory Renewable Energy Portfolio Standard. All these measures will lead to a predicted continuation of the Korean solar PV market’s growth over the next few years. Lacking its own natural resources, the country is taking steps toward energy independence. According to the National Energy Plan, its renewable energy segment needs to grow from 2.24% to 11% by 2030. This might seem a modest figure, but, being one of the world’s top ten largest energy consumers, this will lead to massive new opportunities for solar energy.
Solarplaza and Kyung Nam Kim, a Korean solar PV expert and consultant, have published the Korean PV Market Report. This extensive and comprehensive report is available in English and provides a detailed description of the market’s status, forecasts, regulation procedures, and a detailed overview of the Korean PV supply chain.
