. Current Status & Future of NRE in Korea . 3rd National Basic Plan for NREs in Korea
Year
1987
Legislation
Notes
Legal basis for NRE R&D activities Amendment for legal basis for NRE dissemination Obligation on public bldgs (const. cost), certification, FIT 10 year plan, target: 3%(2006), 5%(2011)
Promulgation of The Promotional Act of NRE Development Promotional Act of NRE Development, 1997 Utilization and Deployment (1stAmendment) Promotional Act of NRE Development, 2002/3 Utilization and Deployment (2nd/3rd Amendment) The 2nd National Basic Plan for NRE 2003 Technology Development & Deployment Promotional Act of NRE Development, 2004 Utilization and Deployment (4th Amendment) The 3rd National Basic Plan for NRE 2008 Technology Development and Deployment Promotional Act of NRE Development, 2009/10 Utilization and Deployment (5th Amendment) The 4th Natl Basic Plan for NRE Technology 2011 Development & Deployment (underway)
11 Categories : Solar PVs, Solar Thermal, Wastes, Bio(LFG, Bio-diesel), Hydro, Geothermal, Marine, Wind, Hydrogen, Fuel Cell, Coal Liquefaction /Gasification
NRE Deployments (thou. toe)
2005 2006 2007 2008 2009 < Composition of NREs (2009) >
2005
2006
2007
2008
2009
Bio 9.5%
Wind 2.4%
PV 2.0% Fuel Cell 0.3%
Waste and hydro power account for more than 85% of TPES
Hydro 61.1%
Wind 14.8%
Expansion of resource-recycled energy system based on wastes-to-energy Strategic R&D and deployment: wind, solar PVs, H2/Fuel Cells As a result, energy mix in NRE consumption shifted into a balanced one
Wastes
35,000 30,000 25,000 20,000 15,000 10,000
Bio E
%
35,000
%
Solar Th Solar PV Wind Bio Hydro Geotherm Ocean Wastes
PV/Wind
Policy BaU
11.0%
30,000 25,000
11% 5.7%
6.1% 5.7%
2.6%
3.5%
4.2%
5000 103TOE
3.1%
2008 2012 2016 2020 2024 2028 2030
2.2%
2006 2030 Bau 2030Policy
5000 103TOE
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
100,000 Solar PVs
Green Villages
Subsidy to NRE Facilities Loan for NRE Facilities Installation & Investment Local Autonomys Subsidy Program Obligation of Public Building (Construction cost) Feed-In-Tariff (FIT)
R PA
Biofuel Deployment
Voluntary agreement b/w government & energy public corporation for NRE use
Necessities
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
10
Renewable Portfolio Agreement (RPA)has been implemented for public energy organizations in expectation of RPS implementation in 2012
Initial RPS is anticipated to be 1.7-2% 11
Category Commerce 1 or larger 1 or smaller 1or larger Others 1 or smaller 20 or larger Less than 20 150 or larger Less than150 Ligneous biomass With dike tidal range: 8.5m or higher No dike With dike tidal range: 8.5m or lower No dike Biogas-based Other fuel-based
FIT(/h) Fixed Variable 107.29 86.04 94.64 66.18 72.80 68.07 74.99 72.73 85.71 68.99 62.81 76.63 75.59 90.50 227.49 274.06 SMP+15 SMP+20 SMP+ 5 SMP+10 SMP+ 5 SMP+ 5 SMP+10 SMP+10 SMP+15 SMP+ 5 -
Hydro
5or smaller
CMW (incl. RDF) LFG BioEnergy Biogas Biomass Marine Energy Tidal Power
50 or larger
Fuel Cells
200 or larger
Reduction Rate: 3%
12
(Unit: \/kWh)
Period ~ 2008. 9.30 2008. 10.1~ 2009. 12.31 Open 2011.1.1 Area ~12.31 Using Structure Open 2011.1.1~ Area 12.31 Using
Duration 15 years 15 years 20 years 15 years 20 years 15 years 20 years 15 years 20 years 15 years 20 years
30kW or smaller 711.25 646.96 589.64 566.95 514.34 606.64 550.34 484.52 439.56 532.97 483.52
30kW~ 200kW 620.41 562.84 541.42 491.17 579.32 525.55 462.69 419.76 508.96 461.74
200kW ~ 1MW 590.87 536.04 510.77 463.37 546.52 495.81 436.50 396.00 480.15 435.60
677.38
Structure
262.3 billion W of subsidies for sites of 1,308 with capacity of 621MW (2009)
2002 Sites capacity(kW) subsidies(109 W) 28 2003 8 2004 5 2005 23 2006 57 2007 142 2008 754 2009 291 229,619 262.7 Total 1,308 852,822 440.2
50,703 18,618 47,140 107,618 20,007 102,178 276,934 3.3 5.6 5.1 7.5 10 26.8 119.5
generation(MWh) 159,942 269,771 309,856 390,171 489,936 854,786 1,185,370 1,502,991 5,162,825
14
RPS was a policy option to be introduced in 2nd Basic Plan for NRE Development & Deployment (Dec. 2003) Two national projects were conducted respectively by KEEI and KERI (2005, 2007) RPS introduction was publicly announced in Green Energy Industry Development Strategy (Sep. 2008) and the 3rd Basic Plan for NRE Development and Deployment (Dec. 2008) Revised bill of NRE promotional law was submitted (Dec. 2009) and passed in National Assembly (2010) Workshop was held for eligible entities and RPS mandated organizations (Jun, 2009) Public Hearing was held with stakeholders (Mar, 2010)
15
Staus of domestic power industry and technological level Contribution to domestic NRE industry and technology
Mandated entities and independent and separate market for solar PVs
Promoting strategic tehcnologies such as solar PVs, wind, fuel cells
16
GenCos
Independent GenCos Public Corp.
GenCos
Eligible Entities Independent GenCos Public Corp.
Law
Presidential decree/rules
Applied to business entities whose capacities are larger than a specific level (500MW) and/or have specific business type (public utilities: CHP, etc)
18
Solar PVs
200MW a year to be allocated up until 2017 From 2017 on to compete with other NREs
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 New(MW) Accum(MW) 200 200 220 420 240 660 260 280 -
19
Weight
Eligible Power Sources or Tech. Reference Alternative WTE, LFG WTE, LFG, IGCC Hydro, Wind(onshore), Hydro, Wind(onshore), Bio-E, Geothermal, Bio-E, Geothermal Tidal power I Wind(offshore) Tidal power II Tidal power I Other marine energy Wind(offshore) Fuel Cell Tidal power II, other marine E, Fuel Cell Open site (30kW or larger) Open site Open site (30kW or smaller) Building Building
Group I Group II
NREs In General
Group I
Solar PVs Group II Group III
1.0
1.2 1.5
Note: tidal power I(sea dike length up to 10km), tidal power II (sea dike of 10km or longer)
21
2011: RPS simulation exercise and RPS trading system modified and adjusted
Issuing mock RECs and trading among eligible public as well as private entities
Kyung-Jin Boo, PhD. Senior Fellow Korea Energy Economics Institute (KEEI) Phone: 82-31-420-2139 (Office) 82-11-9739-5410 (Cellular) E-Mail: kjboo@keei.re.kr