korea\'s cleantech stimulus spending & market

$: Korea\'s Cleantech Stimulus Spending & Market$
Renewable Power and Cleantech in South Korea:Vision, Technology, and Market

Kevin P. Kane

Cleantech Investment Advisory

Vision & Target

Solar Photovoltaic (PV)

Wind PowerIV

III

II

I

Light-Emitting Diode (LED)V

Carbon Capture & Sequestration (CCS)VI

Contents

Smart Grid Technology

VII

V

Appendix (Market & Policy Structure)

VII

Green Buildings

Technology Drivers

Kevin P. Kane

1996 2005 2020a 2020b0

200

400

600

800

1000

298594

813569

30%

New TargetOriginal

Mid-Term 30% GHG Reduction TargetReduce Green House Gases

11% Renewables by 2030

Converge 2 Principles

New Technology Drivers

Domestic Market & ExportsNew Renewables

14.9%

27.8%

Nuclear

11%

2.4%

2007-10 2030

Total Primary Consumption

Unit: MMT CO2-e

Sources: Korean Green Growth Presidential Committee / Ministry of Knowledge and Economy / Korean Energy Economic Institute

1. Maintain Sustainability

2. Maintain Economic Growth

Vision & Target Kevin P. Kane

$1.5 Bil. for New Renewables

$650 Mil. for Green Appliances

$370 Mil. for Clean Fuel

$280 Mil. for Infrastructure.

2008-12 R&D Investment

Government Spends $1.2 Bil.

Private Sector Spends $1.6 Bil.

Developing Growth Engines

Category Approach Technology

Developing

Market-driven

Solar PVsWindLED

Smart Grid

Technol-ogy-driven

Fuel CellClean Fuel

IGCCCCS

Energy Storage

Next-Genera-tion Develop-

ment

Corporate-led

Heat PumpCHP

Nuclear Power

Green Buildings(LEED)

Green CarUniversity/ R&D Cen-

terSuperconductivity

Technology Kevin P. Kane


Monetary Units in USD

Solar PV Kevin P. Kane

USD 2010 2020 2030PV Unit Cost ($/kWh) $.27 $.13 $.08

PV System Cost ($/W) $5.4 $2.7 $1.3

PV Technology Target

Present (Core Components)

Silicon-based solar battery

Short-Term Thin film solar cells (a-Si, CIGS)

Long-Term3rd generation. Muti-

junction tandem cells, Dye cells, Organic

cells

PV Cost-Reduction Targets

R&D To Commercialization

1.3 GW Installed Capacity by 2012

4.5 GW Manufacturing Capacity by 2012

9.4% World Market Share 2012

Sources: Korean Green Growth Presidential Committee / Ministry of Knowledge and Economy / Korean Energy Economic Institute / “Rise of Cleantech in South Korea,” Cleantech Group (in Cooperation with Samho Green Investments and VC)

$7.8 Bil invested in 300 MW Test Bed

Wind Power Kevin P. Kane

Wind Power Target

Present (Core Components)

Common Use Onshore and 3 MW

or more Offshore

Short-Term Offshore 5 MW and Greater

Long-TermLarger than 10 MW

Generators with Hybrid Smart Wind

Power Systems

Wind Power Cost-Reduction Targets

Top 5 Producer in World by 2020

Export Oriented Industry

USD 2010 2020 2030System cost($/kWh) $3 $2.4 $1.7

Turbine scale 2 MW 5 MW 10 MW

Power conversion Cp>0.47 Cp>0.49 Cp>0.50

2.25 GW Installed Capacity by 2012

Sources: Korean Green Growth Presidential Committee / Ministry of Knowledge and Economy / Korean Energy Economic Institute / “Rise of Cleantech in South Korea,” Cleantech Group (in Cooperation with Samho Green Investments and VC)


140 lm/W Technology by 2015

LED Kevin P. Kane

LED Technology Targets30% LED Chip Market Share by 2015

Epi/Chip/Packaging

Efficiency 160 lm/W by 2012

Quantum effi-ciency

& Nano-based

LED

Material/Model

Integration of light source module, etc.

Fluorophorelight source

& Optimum heat/

optical Tech.

Application Commercia-lization new

LED

Sensitive in-door design & Car/medical LED lights

$2.4 Bil. Domestic Market

850 Domestic LED Industry Companies

30% Public Bldg. LED lighting by 2012

$20 Bil. Gov. Funding for Installation & Human Resources

Sources: Korea Energy Management Corporation,/ Ministry of Knowledge and Economy / Korean Energy Economic Institute


U.S. 54 Bil. Korean Market Size

Smart Grid Kevin P. Kane

168 Corporations in the Pilot

$200 Mil. Jeju Island Pilot

Smart Grid Korea-wide by 2030

2010 Black-Out Time

(min/year)

Transmission Loss (%Loss)

Korea 18 minutes 4.0%

U.S 137 minutes 6.7%

U.K 68 minutes 8.9%

High Performance Grid

Sources: Korea Energy Management Corporation,/ Ministry of Knowledge and Economy / Korean Energy Economic Institute


CCS Kevin P. Kane

.5 MW CCS Test Bed U.S. $30-40/tCO2

10 MW 2011-14 Pilot - $30/tCO2

100-500 MW 2015 Demo - $20/tCO2

$86.5 Mil. R&D by 2013

Sources: Korea Energy Management Corporation,/ Ministry of Knowledge and Economy / Korean Energy Economic Institute . Photos: Energy Tribune, Ecolocalizer.com

$2.4 Bil. Investment from Korea Electric Power Corporation

USD Cost per Ton of Carbon Dioxide


Green Buildings Kevin P. Kane

1 Million Green Homes by 2018

Samsung Demo with 56% Energy Reduction

Huge Domestic Market & Export Potential

New Houses Ø CO2 Emissions by 2025

Sources: Korea Energy Management Corporation,/ Ministry of Knowledge and Economy / Korean Energy Economic Institute / Korea.net“

House Energy Reduced 60% by 2017

Songdo City Convensia

LEED NC 2.2

Samsung C&T Passive House

“Korea’s ‘63 Building’ Uses Enough Electricity to Power Uijeongbu City.” KEEI Economist

See Appendix Next Slide 6 Slides

Phone: 82+10.9742.2477 │Email: [email protected] │ Website: Energy-Fanatic.com

Korea Energy Economics Institute

Thank You!

Kevin P. Kane

Energy & Cleantech Advisory

mailto:[email protected]

Appendix Kevin P. Kane

Units: TOE 2010 2015 2020 2030 Avg. annual growth rate (%)

Solar 40 (0.5)

63 (0.5)

342 (2.0)

1,882 (5.7) 20.2

PVs 138 (1.8)

313 (2.7)

552 (3.2)

1,364 (4.1) 15.3

Wind 220 (2.9)

1,084 (9.2)

2,035 (11.6)

4,155 (12.6) 18.1

Bio 987 (13.0)

2,210 (18.8)

4,211 (24.0)

10,357 (31.4) 14.6

Hydro 972 (12.8)

1,071 (9.1)

1,165 (6.6)

1,447 (4.4) 1.9

Geothermal 43 (0.6)

280 (2.4)

544 (3.1)

1,261 (3.8) 25.5

Tidal 70 (0.9)

393 (3.3)

907 (5.2)

1,540 (4.7) 49.6

Wastes 5,097 (67.4)

6,316 (53.8)

7,764 (44.3)

11,021 (33.4) 4.0

Total 7,566 11,731 17,520 33,027 7.8

Primary E (106TOE) 253 270 287 300 0.9

Share 2.98% 4.33% 6.08% 11.0%

Korea’s New Renewable Energy Targets: Total Primary Consumption



Feed-in-Tariff Eligibility

Power Source Eligible Facilities Category

FIT(₩/㎾ h)Note

Fixed Variable

Wind 10 ㎾ or larger - 107.29 - Reduction Rate: 2%

Hydro 5 ㎿ or smaller

Commerce1 ㎿ or larger 86.04 SMP+15

1 ㎿ or smaller 94.64 SMP+20

Others1 ㎿ or larger 66.18 SMP+ 5

1 ㎿ or smaller 72.80 SMP+10

CMW (incl. RDF) 20 ㎿ or smaller - - SMP+ 5

Fossil Fuel content:

Less than30%

Bio-Energy

LFG 50 ㎿ or smaller20 ㎿ or larger 68.07 SMP+ 5

Less than 20 ㎿ 74.99 SMP+10

Biogas 50 ㎿ or smaller150 ㎾ or larger 72.73 SMP+10

Less than150 ㎾ 85.71 SMP+15

Biomass 50 ㎿ or smaller Ligneous biomass 68.99 SMP+ 5

MarineEnergy

Tidal Power 50 ㎿ or larger

tidal range:8.5m or higher

With dike 62.81 -No dike 76.63 -

tidal range:8.5m or lower

With dike 75.59 -No dike 90.50 -

Fuel Cells 200 ㎾ or largerBiogas-based 234.53 - Reduction

Rate: 3%Other fuel-based 282.54 -



PV Solar Feed-in-Tariff

Period Duration30kW or

less30kW or larger

~ 20089.30

15 years 711.25 677.38

200810.1

~200912.31

Duration30kW or smaller

30kW~

200kW 200kW ~

1MW 1MW ~

3MW Larger

than 3MW

15 years 646.96 620.41 590.87 561.33 472.70

20 years 589.64 562.84 536.04 509.24 428.83

20101.1 ~ 2010

12.31

15 years 566.95 541.42 510.77 485.23 408.62

20 years 514.34 491.17 463.37 440.20 370.70

(Unit: ₩/ ㎾ h)


• Encouragement of technological advance based on market mechanism• Larger uptake of NREs in response to the UNFCCC

• Fostering NRE industry via market expansion for NREs

Renewable Portfolio Agreement (RPA)First MOU in Jul 2005

Second MOU in Jul 2009

Renewable Portfolio Standards (RPS)

Operation in 2012

Pricing mechanism to purchase the power generated

by NRDs

Voluntary agreement in government & energy public corporation for

NRE use

Target setting and pricing based on market

mechanism

Paying premium prices based on production costs by energy type

Setting a target by levying mandatory volume or share on

power generator

Feed-In Tariff (FIT)

Since Jan. 02

Necessities


Renewed Portfolio Standard by 2012



Renewable Policy Roadmap

Sunsetting of FIT

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Million Green Homes Program<Smart Energy System, Zero Energy House, Wind 2000(small turbine)>

RPS

Feed-In-Tariff

100,000 Solar PVs

Green Villages

Loan for NRE Facilities Installation & Investment

Local Autonomy’s Subsidy Program

Gradual Reduction in SubsidySubsidy to NRE Facilities

R PARFS: Biodiesel 20% Mix, Biodiesel 85% MixBiofuel Deployment

Flex Fuel Vehicles Deployment

Strengthening of NRE Standardization/Certification

Wind 2000 (Deployment of 2,000MW by 2020)

Obligation of Public Building (Energy Load) Obligation of Public Building (Construction cost)


Presidentof South Korea

Green Growth Committee

M. Foreign Affairs and Trade

M. Strategy and Finance

M. EnvironmentMinistries

PublicResearch Centers

Kr. Inst.of Science and Tech.

Kr. Science and Tech. Policy Inst.

Kr. Insti. of Energy Research

Kr. Electronics Technology Inst.

Kr. Research Inst. of Chem. Tech.

Kr. Smart Grid Inst.

Nationally OwnedCompanies

Kr. Gas Corp.

Kr. District Heating Corp.

Power Mgmt.

Kr. Power Exchange

Kr. Energy Mgmt. Corp.

PowerGeneratingCompanies

Kr. Nuclear Power Hydro Co.

5 Generating Co. (GENCOs)Nuclear Research

Kr. Atomic Research Inst.Kr. Inst. of Nuclear Safety

Sources: The Rise of Cleantech 2010, Cleantech Group / Personal Interviews

M. Knowledge Economy

M. Education and Science

Kr. Power Engineering Co., Inc.

Kr. Energy Economic Institute (Policy)Kr. National Oil Company (KNOC)

Kr. Electric Power Co. (KEPCO)

Signals Hierarchical and /or Working Relationship


South Korea’s Energy Bureaucracy

Map Designed by this Presenter

korea\'s cleantech stimulus spending & market

Documents

samho green

cleantechin

reduction

public building

usd sources

ministry

appendix kevin

cleantech