Consulate General of Korea,San Francisco

December 5. 2013

Lee Kwangho, Consul

Energy Status in KoreaEnergy Status in Korea

ContentsContents

ⅠⅠ

Achievements to DateAchievements to DateⅡⅡ

ⅢⅢ National ProgramsNational Programs

Future DirectionsFuture DirectionsⅣ

Energy Status in KoreaEnergy Status in KoreaⅠⅠ

8th biggest energy consumer in the world(262.6Mtoe) Source: KEEI

5th biggest importer, 68.7 billion USD (accounting for 56% of all energy import) Source: KEEI

Energy Consumption Energy Consumption

Crude Oil ImportCrude Oil Import

CO2 Emission CO2 Emission 7th biggest emitter in the world, 590MtoeSource: European Commission’s Joint Research Center & PBL Netherlands Environmental Assessment Agency (2012)

The Energy Status

146 bil USD(Cars + Semi-conductors + Shipbuilding)

171 bil USD(Energy)

4

Low Carbon Green Growth

“As we go green, we generate money and jobs”

Elements of Green Growth

Green energyparadigm

Contributionto the globalcommunity

Improvementin quality

of life

Greentechnology asa new growth

engine

The Concept of GREEN GROWTH

5

RE : 8 Sources-PV, Solar Thermal, Wind, Waste, Bio (LFG, Bio-Fuels), Hydro, Geothermal, and Marine

New Energy : 3 Sources - Fuel-cell, Hydrogen, Coal Liquefaction or Gasification

RE : 8 Sources-PV, Solar Thermal, Wind, Waste, Bio (LFG, Bio-Fuels), Hydro, Geothermal, and Marine

New Energy : 3 Sources - Fuel-cell, Hydrogen, Coal Liquefaction or Gasification

Waste and Hydro Energy account for the

majority

(82.5%)

Waste and Hydro Energy account for the

majority

(82.5%)

Hydro11.6%

Hydro11.6%

Bio11%

Wind2.6%

PV2.4%

Fuel Cell0.6%

Bio11%

Wind2.6%

PV2.4%

Fuel Cell0.6%

Breakdown of NRE Share (2011)NRE Share in TPES (%)

’06 ’07 ’08 ’09 ’10

Waste70.9%

Waste70.9%

Annual Growth Rate : Annual Growth Rate : 7.0% (`06~`11)

• Prospect for the growth rate of each NRE source by 2030

PV (15%), Wind (18%), Bio (15%) PV (15%), Wind (18%), Bio (15%) Waste (4%), Hydro

(2%)

Increase Decrease

’11

2.752.75

New & Renewable Energy Status

• National NRE Supply Target : 11% by 2030

6

Ⅱ Achievements to DateAchievements to Date

Strong Government

Support

Strong Government

Support

Active Participation of SMEs &

Large Conglomerates

Active Participation of SMEs &

Large Conglomerates

Establishment of the

Industrial Ecosystem

Establishment of the

Industrial Ecosystem• Building the value chain & business system based on the collaboration between SMEs & large conglomerates

• Building the value chain & business system based on the collaboration between SMEs & large conglomerates

NRE industries are regarded as the main source of SMEs’ growth, job creation, and a new profitable areafor large conglomerates NRE industries are regarded as the main source of SMEs’ growth, job creation, and a new profitable areafor large conglomerates

No. ofManufacturers

No. ofManufacturers

No. of Employees

No. of Employees

Sales(1 bil USD)

Sales(1 bil USD)

Exports(100 mil USD)

Exports(100 mil USD)

’07’07 ’09’09 ’10’10 ’07’07 ’09’09 ’10’10 ’07’07 ’09’09 ’10’10 ’07’07 ’09’09 ’10’10

101101193193

3,6613,661

10,39510,395

1.241.24

4.744.74

6.26.2

26.726.7

2122122.1 times2.1 times 3.7 times3.7 times 6.5 times6.5 times 7.3 times7.3 times13,65113,651 8.078.07 45.345.3

Achievements

8

PVPVExisting

Industrial Ecosystem

Existing Industrial Ecosystem

Fostering the next-generation semiconductorIndustry based on the mutual development of large and small companies and job creation

Fostering the next-generation semiconductorIndustry based on the mutual development of large and small companies and job creation

New era of GW scale power production through an integrated production system from Poly silicon to systemNew era of GW scale power production through an integrated production system from Poly silicon to system

Increasing exports in all areas such as materials and modules, including equipment and turnkey ordersIncreasing exports in all areas such as materials and modules, including equipment and turnkey orders

Poly silicon(t)

Poly silicon(t)

Ingot/Wafers(MW)

Ingot/Wafers(MW)

Cells(MW)Cells(MW)

’07’07 ’09’09 ’10’10 ’07’07 ’09’09 ’10’10 ’07’07 ’09’09 ’10’10 ’07’07 ’09’09 ’10’10

Modules

(MW)

Modules

(MW)

ExportsExports Equipment ExportEquipment Export

Large-scaled Plant ExportLarge-scaled Plant Export

Jusung Engineering (130 mil USD to China),Toptech (14.5 mil USD to China)

Jusung Engineering (130 mil USD to China),Toptech (14.5 mil USD to China)

Samsung C&T Corp. (500MW, Canada; 130MW,US)

SDN (45MW, Bulgaria)

Hyundai Heavy Industries Co. (175MW, US)

Samsung C&T Corp. (500MW, Canada; 130MW,US)

SDN (45MW, Bulgaria)

Hyundai Heavy Industries Co. (175MW, US) ’04’04 ’07’07 ’10’10

(Unit: Million USD)(Unit: Million USD)

00

17,10017,10031,60031,600

200200

1,0001,000

1,9151,915

3636

921921

1,8311,831

173173

1,1401,140

2,9082,908

66142142

3,7443,744

’09’09

1,7231,723

9

WindWindModel sector for SME & LE to co-prosper

Model sector for SME & LE to co-prosper

Building industrial structure with the collaboration between SMEs (for components) and large enterprises (for finished goods)Building industrial structure with the collaboration between SMEs (for components) and large enterprises (for finished goods)

There is a growing trend towards increasing exports in wind power systems as well as tower & machined partsThere is a growing trend towards increasing exports in wind power systems as well as tower & machined parts

A high potential of becomingthe leading group combined with key industries

A high potential of becomingthe leading group combined with key industries

Growing up asthe 2nd major shipbuilding industry

Growing up asthe 2nd major shipbuilding industry

’04’04 ’07’07 ’10’10

(Unit : mil. USD)(Unit : mil. USD)ExportsExports

CategoryCategory Major CompaniesMajor Companies

PartsParts

BladeBlade

TowerTower

ComponentComponent

SystemSystem

KM, Deck, Doha Industry, Gwangdong FRP, Hwashin FRPKM, Deck, Doha Industry, Gwangdong FRP, Hwashin FRP

Dongkuk S&C, Unison, CS wind, Speco, Win&PDongkuk S&C, Unison, CS wind, Speco, Win&P

Taewoong, Pyungsan, Yonghyun BM, Hyunjin Materials, Unison, MyscoTaewoong, Pyungsan, Yonghyun BM, Hyunjin Materials, Unison, Mysco

Doosan, Hyundai, Hyosung, STX, Samsung Heavy Industries, DSMEDoosan, Hyundai, Hyosung, STX, Samsung Heavy Industries, DSME

5858

475475

788788 Wind Power ExportWind Power Export

Hyundai Heavy Industries

(Pakistan, 49.5MW, 1.65*30)

STX (The Netherlands, 50MW, 2*25)

Unison (Sri Lanka, 9.7MW, 750kW*13)

Hyundai Heavy Industries

(Pakistan, 49.5MW, 1.65*30)

STX (The Netherlands, 50MW, 2*25)

Unison (Sri Lanka, 9.7MW, 750kW*13)

10

National NRE ProgramsNational NRE ProgramsⅢ

Target : To realize the national target, 11% of the NRE share in TPES (launched in 2012)

RPS (Renewable Portfolio Standards, 2012)RPS (Renewable Portfolio Standards, 2012)

FIT (Feed in Tariff, 2002~2011)FIT (Feed in Tariff, 2002~2011)

Projects for Large-scaled NRE Market

NRE Plants : 2,108 ; Power Generation : 10,129GWh ; Budget Supported : 1,141bil. KRW (951mil. USD)

Selected 13 mandatory power companies with power plants of 500MW or aboveSelected 13 mandatory power companies with power plants of 500MW or above

0.5%p ↑ 1.0%p ↑

Obligatory NRE Production Ratio in Total Power Generation

Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022~Mandatory Ratio 2.0% 2.5 % 3.0 % 3.5 % 4.0 % 5.0 % 6.0 % 7.0 % 8.0 % 9.0 % 10.0 %

(Unit : thou TOE)(Unit : thou TOE)

Responsible for 50% of targetedNRE supply amount by 2020Responsible for 50% of targetedNRE supply amount by 2020

Inducing a market investment of 48 bil USDInducing a market investment of 48 bil USD

2012 2012 2015 2015 20202020

Reduction of 16 mil tons of CO2 annually Reduction of 16 mil tons of CO2 annually

(Reference) 2020 NRE Supply Target : 17,520 thou TOE(Reference) 2020 NRE Supply Target : 17,520 thou TOE12

Obligated new buildings of public institutions - with a floor area of or exceeding

3,000 ㎡ - to use more than 5% of total construction expenses to install NRE

systems

Mandatory Use for Public Buildings (2004~2011)Mandatory Use for Public Buildings (2004~2011)

Mandatory use and design with NRE of 10% or more of total energy load used for

new, renovated and expanded public buildings over 1,000 ㎡

Revision of Obligatory Program for Public Buildings (2012~Present)Revision of Obligatory Program for Public Buildings (2012~Present)

Projects for Large-scaled NRE Market

Public institutions : Include state administrative bodies, local autonomous entities and state-run companies

13

Subsidizing a part of the installation costs of NRE facilities to enhance NRE deployment and relieve the end users’ cost burden (i.e., factories, individual buildings, schools, etc.)

Expanding the former ‘100,000 Solar Roof Program’ to promote residential NRE use

Supporting various NRE deployment projects by local governments for public buildings, social service facilities and residents of remote areas, etc.

Offering corporations a tax reduction of 10% of total NRE investment

Providing low-interest loans

Subsidy & Loan Programs

General Subsidy Program (since 1993)General Subsidy Program (since 1993)

1 Million Green Homes Program (since 2009)1 Million Green Homes Program (since 2009)

Local NRE Deployment Program (since 1996)Local NRE Deployment Program (since 1996)

Loan & Tax Deduction Program (since 1983) Loan & Tax Deduction Program (since 1983)

Aiming to disseminate 1 million green homes by 2020

Focusing on PV, fuel cells, wind and bio-energy

14

Vision 2015Vision 2015

Targeting to rank within world’s top 5 in the NRE marketTargeting to rank within world’s top 5 in the NRE market

Goal for International Market Share : PV 15%, Wind 15%Goal for International Market Share : PV 15%, Wind 15%

SaleSale ExportExport EmploymentEmployment PrivateInvestment

PrivateInvestment

’09 ’12 ’15 ’09 ’12 ’15 ’09 ’12 ’15 ’09 ’12 ’15

(Unit : bil USD) (Unit : bil USD) (Unit : 1,000 employees) (Unit : 0.1 bil USD)

3.33.3

16.716.7

41.741.7

22

1111

3737

992727

110110

2.62.6

4.84.8

7.27.2

To invest 33 bn USD by 2015(private: $28 bn, government: $5 bn)

To invest 33 bn USD by 2015(private: $28 bn, government: $5 bn)

15

Energy Technology CooperationEnergy Technology Cooperation

Ⅳ

① International Joint Research Program

Areas of Energy Technology Cooperation

Opportunities to participate in Korea’s research programs which provide funding for technology development and commercialization in the area of green energy

17

Areas of Energy Technology Cooperation

Energy R&D Forum②

Overseas nations can participate in several fora, which are held regularly, related to energy technology development

Participating countries can share their energy technology strategies and measures for market development

Global Green Energy Leaders Forum (2011) Energy Tech Insight (2012) World Energy Congress(2013)

Clean Energy Ministerial Meeting(2014, Seoul)

18

③ e-Platform : ETA (Energy Technology Trade Agreement) – to be established

- Aims to increase opportunities for sharing quality information on energy technology trade among companies, research institutes and the academia

- Through the e-Platform, it is expected that information on major topics and status of technologies relevant for technology trade among stakeholders will be improved, as various information will be provided in accessible form, consisting of domestic and overseas energy technologies

Areas of Energy Technology Cooperation

19

Thank youThank you

Korean.energy@gmail.comKorean.energy@gmail.com