The South Korean government will invest 42 trillion won ($36.3 billion) over the next four years to promote energy sector including renewable energy, according to an outline by the Ministry of Trade, Industry and Energy on Tuesday.

Under the plan, the government will inject 33 trillion won in new renewable energy, 4.5 trillion won in energy storage system (ESS), 2.5 trillion won in Smart Meter, and 2 trillion won in eco-friendly development.

Starting from 2018, the government will raise the mandatory share of renewable energy supplies from power produced from generators. The share was initially set at 4.5 percent for 2018 but it would be raised to 5 percent. The ratio for 2020 would be raised to 7 percent from 6 percent. “To meet the reinforced regulation on renewable energy, additional 8.5 trillion won would be invested for facilities, including a renewable energy grid with capacity of 3 million kilowatts,” said Chae Hee-bong, an official of the ministry.

The government will start installing solar energy and offshore wind power generators with the capacity of 2.3 gigawatts in total from next year. The offshore wind power business could provide work for parts suppliers of dockyards.

The government also will lift various regulations to accelerate proliferation of renewable energy. Privately produced solar power could be entirely traded on the Korea Power Exchange, up from current 50 percent.

The government will provide advanced metering infrastructure (AMI) for uses of electricity and gas energy by injecting about 2 trillion won by 2022. AMI would enable users to check electricity consumption in real time and make automatic meter-reading possible.

“The new renewable energy sector could contribute to domestic demand in value of 12 trillion won and create 30,000 jobs by 2020,” the official said. Exports of new renewable energy will likely double from now to reach $10 billion in 2020.

By Seo Dong-cheol

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]