With due support from the government in form of low tariffs, funds and other incentives, South Korean renewable energy industry is set to grow remarkably in the years to come.
According to a survey conducted by the Ministry of Knowledge Economy, South Korea's renewable energy industry is projected to post total sales worth 8.1 Trillion Won (US$7.2 Billion) this year (2010), as per the news published by iStockAnalyst
The expected sales statistics show a 100% increase from last year. The industry’s exports revenue is estimated to climb 125%, reaching US$ 4.6 Billion. Private sector’s investment is anticipated to increase 27%, pegging at 3.9 Trillion Won (US$3.5 Billion) from 2009, the report added.
To support its domestic clean technology industries, the South Korean government, in 2009, reduced tariffs on import for the components used in the production of renewable power. This lowered tariff reduced the outlay overheads of green energy companies. Resultantly, goods and services were sold at lower prices, thereby making them quite affordable. In 2010 as well, this factor will support the country’s renewable energy industry.
The government is also lending its full support to the industry. This is because the industry can meet the 'Low Carbon, Green Growth' vision of the government to facilitate the security of energy export resources and green energy supply, as well as to attain new employment and economic growth.
Moreover, the industry is expected to continue its growth in coming years also. This seems quite realistic also as the government has lately passed a bill to elevate the consumption of renewable energy, and support wind power, solar, and fuel cell markets. As per the bill, the services must hike up renewable energy by 2% of the overall power generation in the year 2012. The requirement will grow five-fold to 10% by 2022.
According to a market research report “South Korean Energy Sector Analysis
” by RNCOS
, the government grants funds that are essential for the production and operation of the utilities for new and renewable energy. The spectrum of government’s support is around 100% of the essential funds. These key factors will propel the growth in the renewable energy sources.
According to a Research Analyst at RNCOS
, “To ascertain the accomplishments of the targets, the country needs to come forth with its renewable promotion policies and accelerate the implementation of its existing policies so that the structured policies and funding bring the biggest gains in the renewable energy supply.”
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