1. New and Renewable Energy - Best Practices in Policy and Deployment -
New & Renewable Energy Center
New and Renewable Energy
in Korea
- Best Practices in Policy and Deployment -
March. 2017
Taewon MOON
New & Renewable Energy Center(NREC)
Korea Energy Agency(KEA)

2. 목차 Contents Ⅰ Ⅱ The Status of New & Renewable Energy In Korea
New & Renewable Energy Center
Contents Ⅰ
The Status of New & Renewable Energy In Korea Ⅱ
Main Policies and Strategies in NRE
*NRE: New and Renewable Energy

3. Ⅰ The Status of New & Renewable Energy in Korea
New & Renewable Energy Center Ⅰ
The Status of New & Renewable Energy in Korea

4. 1. NRE Target – The 4th NRE Basic Scheme
Primary Energy
Annual NRE growth rate between 2014 and 2035: 6.3% Annual demand rate of primary energy: 0.7%
Target Rate: (2035)
11.0%
Target Rate: (2035)
13.4%
Electricity
Annual NRE growth rate between 2014 and 2035: 5.8% Annual demand rate of electricity: 1.8%
NRE share targets based on primary energy
NRE share targets based on power generation capacity
'12
'25
'30
'14
'20
'35
(Unit : %)
'12
'25
'30
'14
'20
'35
(Unit: %)
13.1
13.4 11
11.5
9.7
7.8
9.0
6.0
5.0
3.6
3.7
3.2

5. 2. The Status of NRE Industry
Trend of Supply
15.22 %
(Growth Rate from 2014)
14,000
13,293
IGCC
Hydro
Solar thermal
Geothermal
Marine
Fuel Cell
Wind PV
Bio
Waste
11,537
12,000
8.0 %
(Annual Growth Rate: 2003 ~ 2012)
9,879
10,000
8,850
7,582
[thou. Toe]
8,000
6,856
14.2 %
(Annual Growth Rate 1998 ~ 2002)
6,000
4,000
2,000
’98
’99
’00
’01
’02
’03
’04
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
’15
FIT
RPS
Status of NRE Industry
Companies
제조업체
Employment
Sales
Export
(unit : # of manufacture)
(Unit : # of employment)
(Unit : USD Billion)
10.0
(Unit : USD Billion)
473
16,177
3.6
X 4.7
X 4.6
X 8.3
X 4.9
100
3,532
0.74
1.2
’07
’15
’07
’15
’07
’15
’07
’15

6. 3. PV & Wind Value Chain in Korea
Polysilicon
Ingot/Wafer
Cell
Module
Value
Chain
Hanwha Q-cell,
Hyundai-Heavy-
Industries,
Shinsung-Solar, LGE
Hanwha Q-cell,
S-Energy, LGE,
Hyundai-Heavy-
Industries
Korean
Companies
OCI,
Hanwha-
chemical
Woongjin Energy
Nexolon,
SKC-Solmics
Wind
Tower
Blade
Gear Box
Generator
System
Value
Chain
CS Wind,
DongKook-S&C,
Win&p
Hyundai-Heavy- Industries,
Unison, Doosan, Hanjin Ind
Hyundai-Heavy- Industries,
Unison, Hyosung
Korean
Companies
KM,
Humancomposite
Woorim-gear

7. 4. NRE Strategies Scope Target ( ~ 2035)
NRE Shares in TPES by 11% (4.62% in 2015)
Target ( ~ 2035)
* 4th New & Renewable Energy Basic Plan (Sep. 2014)
DEPLOYMENT
INFRA
Subsidy Programs
- Home & Building
- Regional
R&D
Renewable-Portfolio-
Standards
Certification
Standardization
Mandatory for Public Building
R&D Project
Capacity Building
Renewable Fuel Standard
Pilot Project
Loan/Tax Incentive
International-
Cooperation R&D
PV Rental Program

8. New & Renewable Energy CenterⅡ
Main Policies and Strategies in NRE

9. Infrastructure-building
5. Main Policies and Strategies in NRE
Category
Sector
Tools
Programs
NRE
Deployment
Program
Private
Subsidy
Home Subsidy Program (1 Mil. Green Homes)
Building Subsidy Program
Feed-in-Tariffs (FIT) (Ended but lasting years)
Overseas Business Support
Loan
Financial Support(Installation, Production, Operating Capital, Solar Agricultural Villages)
Mandatory
Renewable Portfolio Standard (RPS: 4.0%(’17) →10%(’23~))
Renewable Fuel Standard (RFS: 2.5%(’15-’17)→3%(’18-’20))
Business
Solar PV Rental Program
Public
Regional Deployment Program
Eco-Friendly Energy Town
Combined Support Program
Establishment of NRE Test-bed
NRE Mandatory Use for new or renovated Public Buildings(21%(’17)→30%(’20))
Infrastructure-building
Private & Public -
Certification, Standardization, and International Cooperation
R&D(Policy and Regulation)

10. Goal and Current Status
6. Renewable Portfolio Standard(RPS)
Overview
Enforces 18 power producers to supply certain amount of
the total Power generation by NRE (Implemented in 2012)
※ Obligators: power producers with capacity of 500MW or above
Goal and Current Status
Goal : ('12) 2.0% →...→ ('16) 3.5% → ('17) 4.0% → ('18) 5.0% →...→ ('20) 6.0% →...→ ('23~) 10.0%
Current Status : RPS achieved 7.3 times of total FIT installed capacity(proceeded for 10 years)
in 5 years
RPS('12~'16)
FIT('02~'11)
Rate of change
7,555MW (Solar PV 3,289MW)
1,030MW (Solar PV 497MW)
633.5%↑(Solar PV 561.8% ↑)
Best Practice
Converting rooftop of the factory and parking lot into Solar PV
Power Plant (Busan)
The largest Solar PV Plant for the single factory utilized
existing facilities in the world (20MW, Renault Samsung Motors)
Generated electricity(26GWh/yr.) provides 7,300 households
* Ave. usage rate 15%, 1 household uses 300kWh/month

11. Implementa-tion of Duty
6-1. Renewable Portfolio Standard(RPS)
Process
Selecting
Obligator
Set Up RPS
(annual) Goal
Implementa-tion of Duty
Performance Report
Evaluation
Electricity Enterprises
(more than certain standard)
Announcing target
(each obligator)
Method: Power Generation(NRE), Purchasing REC
Submit REC
→ Cost
Compensation by electricity bill
- REC verification
Penalty
assessment
Obligator should prove its Implementation of duty by submitting REC
- Direct acquiring REC (Installation & Generation)
- Indirect acquiring REC (Purchasing REC in the market)
For the amount of unimplemented, levy penalty
(within 150% of avg. trading price for each REC)
* REC: Renewable Energy Certificate

12. 6-2. Renewable Portfolio Standard(RPS)
Total Capacity(MW)

13. Eligible Energy Sources
6-3. RPS – REC & Multipliers
Evaluation Criterion
- Economic feasibility, Environmental effect, Potential, Industrial promotion effect, Policy priority
(Govnt. Revises every 3 years)
Energy Source
Multiplier
Eligible Energy Sources
Installation Type
Detail
Solar PV
1.2
On Land
Less than 100kW
1.0
More than 100kW
0.7
Exceed 3,000kW
1.5
On Building & Existing Facilities
Under 3,000kW
Floating on the Water Surface
Self-generating Facilities
5.0
ESS(with Solar PV Facility)
2016, 2017
Other REs
0.25
IGCC, Byproduct Gas
0.5
Waste, LFG
Hydro, Onshore Wind, Bioenergy, RDF Combustion (全焼) Power, Waste Gasification Power,
Tidal(潮力) (with Embankment, 防潮堤), Self-generating Facilities
Lignocellulosic Biomass Combustion (全焼) Power, Off shore wind(less than 5km connecting distance)
2.0
Fuel Cell, Current Power(潮流)
Offshore Wind(more than 5km connection distance), Geothermal, Tidal(潮力)(without Embankment, 防潮堤)
Fixed Type
1.0 ~ 2.5
Variable Type
5.5
ESS(with Wind Facility)
2015
2016
4.5
2017
PV & Other Energies’ Multipliers

14. Number of Rental companies
7. PV Rental Program
Overview
Household owners pay electricity bill as under 80% of ave. Electricity bill,
PV Rental companies earn rental fee and benefit from REP selling
※ REP: Renewable Energy Point(No Multipliers applied)
※ REP: Renewable Energy Point(No Multipliers applied)
Year
2013
2014
2015
2016
Number of Rental companies 3 4 6 8
Number of Households 60
2,006
8,796
10,362
Capacity
(kW)
180
6,018
8,569
7,971
TARGET
By 2030
0.4 mil households

15. (Verify & Recommendation)
8. Solar Agricultural Villages
Overview
To help increasing income of farmhouse with expending PV deployment
Target : 10,000 farmhouses by 2020
Budget : USD 10 mil as loan program(in 2017)
Process
Related Ministries
(Government & Budget)
Agricultural Bank
(Loan & Others)
Korea Energy Agency
(Verify & Recommendation)
Promotion & Education
Feasibility Support
Permission Support
Loan Recommendation
Permission Support
Loan
Selecting EPC contractor
REC Trading Support
Expected result
Increasing of Farmhouse income(USD 1,000/month), RE deployment, Job creation

16. Unused, Unwanted Facility Real Benefits to local residents
9. Eco-Friendly Energy Town
Overview
To provide real benefits to local residents as increasing income, elevating welfare by
installing Renewable energy system on unused & unwanted facilities.
Concept
Energy Independence
(Renewable Energy)
Unused, Unwanted Facility
Tourism & Culture
Local Infrastructure
Real Benefits to local residents
Increasing Income
Improving Welfare
Creating Add Value

17. 9-1. Eco-Friendly Energy Town(Korea)
Best Practice – Hong Chun
Livestock waste
(80 m3/day)
Food waste
(20 m3/day)
Bio- Gasification Facility
Anaerobic Digestion
(30 m3/day)
Dehydration Waste
(20 ton/day)
Solid & Liquid
Fertilizer Support Facility
Fertilizer
(USD $52,000/year)
Golf Resort,
Farmland
Biogas Tank Facility
Biogas
(3,000 m3/day)
Gas Refining
Refining, Heat Facility
Gas Supply
Saving Heating Expenditure
USD $910/year/household
Utilising Livestock & Food Waste to Fertilizer & Citygas
Improving Income of Residents by selling RE Electricity installed on Sewage Treatment Plant
PV Electricity Sales
(USD $52,000/year)
Small Hydro Electricity Sales
(USD $38,000/year)
PV & Small Hydro Installed
on Sewage Treatment Plant
Electricity Company

18. 9-2. Eco-Friendly Energy Town(Abroad)
Ethiopia
Energy Independent Eco-Friendly Energy Town
(PV 250kW, Biomass 30kW, ESS 1MWh, Microgrid)
MoU(May. 2016) : MOTIE(KR)-Vice Minister of Economic Cluster(ET)
Korean Delegation to Ethiopia Site Survey(Jun. 2016)
Project Concept Paper(PCP) received(Aug. 2016)
Feasibility Study/ODA Budget approved/Koftu
Mongolia
Mine Damage Restoration Eco-Friendly Energy Town
(PV 300kW, Small Wind 100kW, ESS 900kWh, Microgrid)
Nalaikh
MoU(Jul. 2016) : MOTIE(KR)-MOE(MN)
Korean Delegation to Mongolia Site Survey(Aug. 2016)
Project Concept Paper(PCP) received(Aug. 2016)
Feasibility Study / ODA Budget approved / Nalaikh
Lao PDR
Energy Independent Eco-Friendly Energy Town (PV, Mini Hydropower, Microgrid)
MoU(Sep. 2016) : MOTIE(KR)-MEM(LA)
Korean Delegation to Laos Site Survey(Sep. 2016)
Feasibility Study is on conducting

19. Thank You 20. Eco-Friendly Energy Town(Abroad) Ethiopia Mongolia
Energy Independent Eco-Friendly Energy Town (PV 250kW, Biomass 30kW, ESS 1MWh, Microgrid)
Thank You
MoU (May, 2016) – MOTIE(Kor)-Vice Minister of Economic Cluster(Ethi)
Korean Delegation to Ethiopia Site Survey(June 2016)
Project Concept Paper(PCP) received(Aug. 2016)
New & Renewable Energy Center
Feasibility Study is on conducting, ODA Budget approval is at final stage
Mongolia
Mine Damage Restoration Eco-Friendly Energy Town (PV 300kW, Small Wind 100kW, ESS 900kWh, Microgrid)
MoU (July, 2016) – MOTIE(Kor)-MOE(Mong)
Korean Delegation to Mongolia Site Survey(Aug. 2016)
Project Concept Paper(PCP) received(Aug. 2016)
Feasibility Study is on conducting, ODA Budget approval is at final stage
Poland
Waste Management Eco-Friendly Energy Town (Discussion on EU FUND utilisation with local companies)
MoU (April, 2016) – KEA(Kor)-KAFE(Poland)
Korean Delegation to Ethiopia Site Survey(Aug. 2016)
Feasibility Study is on conducting