Energy importer Korea to invest billions in renewable power sources

Age
Monday 12/11/2007 Page: 2

SOUTH Korea makes no secret that it has serious designs on the renewable energy industry. Its latest "Invest Korea" promotional material invites foreign investment in many sectors, but not alternative energy. The Government is not overly friendly" about attracting overseas companies to tap attractive feed-in electricity tariffs aimed at fostering long-term growth in the local renewable energy industry.

While barriers to entry are likely to remain steep", the Government says, conditions are much friendlier" for joint ventures that bring in advanced technology. 'All countries are trying to promote renewable energy," said Kim Pyung-hee, a director of the Korea Trade-Industry Promotion team. With an annual output of about $US1 trillion ($A1.1 trillion), Korea's is about the same size as Australia's. Already the world's biggest shipbuilder, second-largest steel producer and ranked fifth among car makers, the country is making a far bigger push into renewable energy. One reason is that it relies on energy imports for 97 per cent of its needs, while Australia is a net energy exporter.

At the end of 2005, renewable energy accounted for just 2.1 per cent of Korea's total supply, a figure the Government plans to raise to 5 per cent by 2011. To that end, it will provide a total of $US9 billion in grants and loans, with the private sector expected to kick in a further $US10.3 billion, says Lee Seongho, head of the New and Renewable Energy Centre. Mr Lee said the top four funding targets were hydrogen fuel, solar photovoltaic cells, wind energy and Integrated Gasification Combined Cycle power plants that are more efficient than conventional thermal plants.

The centre hands out 130 billion won ($A156 million) a year to support efforts aimed at tapping energy from sources ranging from ocean energy to biomass and geo-thermal sources. The first aim is to create a new industry: the second target is the deployment of more environmentally favourable technology," Mr Lee said. The second supports the first, since if we get more people using it, then the industry grows." By contrast, Australia's Government has earmarked $A800 million since 2004 to support low-emissions technology, particularly efforts to reduce carbon emitted from burning brown coal, says the Climate Institute Australia.

Link kemco.or.kr/english