South Korea Plans to Invest US$36.6 bn towards Renewable Energy Industries

Published Date : Jul 05, 2016

The global renewable energy market has a significant potential to grow across the developing regions in Asia Pacific where the demand for electricity is ever increasing due to rise in population. India, China, South Korea, and Japan are some of the major countries focusing on renewable energy to decrease their carbon footprints and reduce the impact of global warming. The growth of the renewable energy market across these countries is largely dependent on the governments and public-private partnerships. The Paris climate agreement has played a pivotal role in shaping the future growth of the global renewable energy market across these economies. 

Government Plans Production of 13 mn KW of Electricity per Year from Renewable Power Stations

This week, the government in South Korea has announced its plans to invest funds worth US$36.6 bn for the development of the renewable energy industries including the wind and solar power by 2020. According to the plan, the new renewable power stations will be built to produce 13 mn KW of electricity per year. This is equivalent to the electricity produced by the 26 coal plants across the country. The government is hopeful that the new energy sectors will create about 30,000 jobs by 2020. 

Presently, the Korea Electric Power Corporation is the only player involved in the buying and distribution of electricity across the country. Under the new plan, the government is expected to scrape off unnecessary regulations and allow individuals to sell the electricity produced through their own solar panels. The government has also increased the ratio of renewable energy generation to 5% by 2018. In 2015, liquefied natural gas plants held 33% of the total power production in South Korea.