2

3

Semi-conductor/AutosOpen Market, stabilize price

Investing in Heavy Chem. Industry Light ind. Heavy Chem. Industry

LowLow CarbonCarbon GreenGreen GrowthGrowth

IT venture, R&D investmentRestructuring Large enterprises

Green Growth New Growth Engine

Shift to a Low-Carbon Economy

4

Energy &Energy & IndustryIndustry PolicyPolicy Paradigm in the Green Growth EraParadigm in the Green Growth Era

Low Carbon EconomyLow Carbon Economy & Society& Society

Green EnergyGreen Energy IndustryIndustry

Green TransformationGreen Transformation of Industryof Industry

Conversion to low consumptionConversion to low consumption

Master Plan for GHG Master Plan for GHG reductionreductionNegotiated AgreementNegotiated Agreement

Strategic TechnologyStrategic TechnologyRoad mapRoad mapLocalizing & exporting Localizing & exporting green energy such asgreen energy such asrenewables, nuclear, et al.renewables, nuclear, et al.

Green Transformation ofGreen Transformation ofMajor industriesMajor industries(Green Car) (Green Car) Facilitating investment Facilitating investment in green industryin green industry

National StrategyNational Strategyfor Green Growthfor Green Growth

Strategy to Develop Green Strategy to Develop Green Energy Market and IndustryEnergy Market and Industry

Strategy for Greening Strategy for Greening Energy Use and IndustryEnergy Use and Industry

5

’07 ’30 ’07

Oil

Coal

LNG

Nuclear

New & Renewable

14.9%

27.8%

2.4%

11%

83%

61%43.4

25.3

13.8

33.0

’30

15.7

12.0

Nuclear capacity(MW)

Share in capacity(%)

Share in generation(%)

(35.5) (34.2)

(48.9)

(59.0)( )

’30’20’10’07

Policy Target for Green Growth

National Energy Basic Plan(Aug.’08)

Minimizing Energy Use/ Low-Carbon Energy Mix

6

7

• Marketability, technical feasibility, and urgency

• Distinction between early revitalization and next generation development

• Technology development goals and roadmaps • Diversifying technology acquisition measures• Linking R&D with demonstration

• Demand creation in public sectors

• Support for seeking international markets

• Establishing public - private partnership• Securing stable financial sources• Reformation of Regulations

8

Baseline Scenario

Technology Innovation Scenario28Gt

62Gt

14Gt

48Gt

Greenhouse Gas Emission(Gt CO2/ year)* Source : IEA

Photovoltaics, Wind Power, Hydrogen Fuel Cells, IGCC

CTL, GTL, CCS LED, Power IT, Energy Storage, Combined Heat and Power, Heat Pump

New and Renewable

EnergyClean Fossil Fuel

Energy EfficiencyImprovement

9

Category Approach Technology

Early Growth Engine

(9)

Market Pull

Solar PVs

Wind

LED

Electricity IT

TechnologyPush

H2/FC

Clean Fossil Fuel

Coal IGCC

CCS

Energy Storage

Next Growth Engine

(6)

Corporate-led

Heat Pump

Micro Cogen.

HT Nuke Reactor

Energy Effic. Bldg

Green Car

University/ R&D Cntr Super Conductor

CCS

IGCC

HT/FC

Super

Conduct

or

Clean Fossil Fuel

E Effic. Bldg.Gree

n Car

Wind

LED Electricity IT

Solar

PVs

Heat Pump

Micro

Cogen

HT Nuk

e Reactor

Energy

Storage

Domestic Technical Competence

Market M

aturity

low high

low

10

11

’07 ’12 ’30** IGCC included• Government : US$ 1.6 bil.• Private : US$ 1.2 bil.

Photovoltaics

Hydrogen Fuel Cells

LED

83%

95%100%

66%85%

65%

90%

PhotovoltaicsHydrogen Fuel Cells

IGCC

LED

Secure economic feasibility by 2020 (generating cost 150 won/kWh)Develop mass production technology for residential fuel cell by 2015

Self-sufficient designing technology for 300MW by 2013

Secure basic core technology for non-nitride100 lm/W LED by 2015

5 15

6 15

1 10

16 20

SelectedSelected TechnologyTechnology DevelopmentDevelopment GoalsGoals andand RoadmapRoadmap

• Solar Photovoltaic (PV)• Wind Power• Led Lights• Smart Grid• Nuclear Energy • Carbon Capture and Sequestration (CCS)

12

Solar Photovoltaic Technology( 녹색성장위원회 홈피 자료 )

Current Situation

Developing and Commercializing key technologies in cells, batteries, and inverters

Participation of major companies in the semiconductor and display sector-Efforts to improve silicon cell price and efficiency - Investment in technology development of 3rd generation cell and equipment- Rapid increase in export: US$ 6 mil.(2004) → 1,308 mil. (2009)- The largest share in total export of new/renewable energy is 64%

SolarSolar PhotovoltaicPhotovoltaic TechnologyTechnology

Development and DeploymentMain features -Generation of solar PV: 5.3GWh(2000) → 71.3GWh(2007)-Share in total generation: 0.01%(2007)- Capacity of solar PV: 82MW(2007)- Solar PV : 940 power plants (2008)

Share of Renewable Target 2008 2010 2015 2020 2030Annual

increase

Solar PV Deployment 0.9% 1.8% 2.7% 3.2% 4.1% 15.3%

Source: Korea Energy Management Corporation, April 2010

13

Current Situation

Solar Photovoltaic Technology( 녹색성장위원회 홈피 자료 )

Development and Deployment

Share of Renewable Target 2008 2010 2015 2020 2030

Annual increase

Wind Power Deployment

1.7% 2.9% 9.2% 11.6% 12.6% 18.1%

Source: Korea Energy Management Corporation, April, 2010

WindWind PowerPower TechnologyTechnology

Procuring the key unit technologies such as the blade of middle size(750kW) generator, and controlling system

A Domestic Market Emerged Starting in 2002, but its size is small compared to the international market - Scale of domestic market: US$ 1.4 bil. (2009)- Capacity of wind power: 283MW(2009)- Average WTG size: 1.7MW(2009) - Average Farm: 20-40MW (2009)

Established as a new and competitive industry due to an efficient value chainInvestment surge for global market preoccupancy using the excellent fundamental technologies from domestic heavy industries/shipyard marine constructionsExport market expansion through large-scale power generator, components, and related system development technologies

14

LED(Light Emitting Diode) Lighting TechnologyLED(Light Emitting Diode) Lighting Technology

Current Situation

Rapid development of domestic LED market fostered by technical enhancement and increases in investment- Korea is behind leading LED countries in development of core technology- Korean companies possess 25% of the world’s LED chip market share since domestic companies succeed in developing LED TV production technology.-Securing Global competitiveness by concentrative R&D investments and world-class technology in semiconductor and IT

Korea’s LED Market Trend

15

Open Power Platform

Fault Prediction & Automatic Recovery System

SmartSmartPower GridPower Grid

SourceSource : National Smart Grid Roadmap: National Smart Grid Roadmap

Smart Metering Infrastructure

Automatic Energy Management System

SmartSmartConsumerConsumer

Electric Vehicle Charging Infra.

V2G & ICT Service System

SmartSmartTransportationTransportation

Large Renewable Generation Sites

Energy Self-Sufficient Houses & Buildings

SmartSmartRenewableRenewable

Various Power Services

Smart Power Exchanging System

SmartSmartPower Power

ServiceService

1st stage (~2012)

Smart Grid TestbedSmart Grid Testbed2nd stage (~2020)

Wide Area Smart GridWide Area Smart Grid3rd stage (~2030)

Nation Smart GridNation Smart Grid

Smart Grid for Low Carbon Green GrowthSmart Grid for Low Carbon Green Growth

SmartSmart GridGrid Technology:Technology: NationalNational RoadmapRoadmap

16

History of Reactor Technology Development

2000s1980s

Introduction of NPP

1990s

Establishment ofLocalization (`~’85)

1970s

TechnicalSelf-reliance

Turn-Key Approach

ComponentApproach

OPR1000 Development (`95)

OPR1000Construction

APR1400 Development (`02)

2010s

APR1400Construction

Kori 1 Wolsong 1 Kori 2

Kori 3&4 Ulchin 1&2 Yonggwang 1&2

Yonggwang 3&4 Ulchin 3,4,5&6 Yonggwang 5&6 Shin-Kori 1&2 Shin-Wolsong 1&2

Shin-Kori 3&4 Shin-Ulchin 1&2

Nu-tech 2012

Nuclear Energy TechnologyNuclear Energy Technology

17

Capture Technology is the best in the world, but we have not undertaken large scale capture and storage demonstration efforts

Science Magazine (‘07.10)

KIERHadong Power Plant

Development of the world’s

leading Membrane

material

Development of the world

best chemical absorbent

(potassium carbonate)

Completion of the world

first Dry absorption

process

CCS TechnologyCCS Technology

2008~2011

Test Bed

0.5MW

30~42$/tCO2

2010~2014

Pilot Plant

10 MW

<30$/tCO2

2015~2018

Demonstration

100~500MW

<20$/tCO2

Stage

Capture Cost

Capacity

18

19

Thank You

20