Six out of 10 renewable energy firms see Korean gov't RE 3020 Plan too challenging

[Graphics by Song Ji-yoon]

More than 60 percent of Korean companies involved in renewables are pessimistic about achieving the Korean government’s goal of raising renewable energy sourcing to 20 percent of the country’s power supply by 2030.

According to a survey on 112 companies involved in renewable energy by the Korea Chamber of Commerce & Industry (KCCI), 58.0 percent found the meeting goal by 2030 difficult and another 6.3 percent impossible. Positive response stopped at 35.7 percent.

For their reasons for pessimism, 45.2 percent cited lack of social consensus, 35.6 percent found the target too ambitious, and 19.2 percent named technological complexities.

Renewables made up 8.13 percent of energy sourcing in 2019, according to the Korea Energy Agency.

“South Korea cannot easily secure locations for renewable energy sourcing facility, and the deteriorating profitability from renewables raise questions if expansion can be possible as hoped,” a KCCI official said.

The survey showed about 53.6 percent of renewable energy companies were confident in meeting their business target for this year. The other 46.4 percent was pessimistic about achieving this year’s target due to a fall in renewable energy price (55.3 percent), delay in business license approval and securing land (17.0 percent), and aging facilities (14.9 percent).

Their biggest challenges were deteriorating profitability (39.3 percent), dispute with residents and compensation (21.4 percent), delay in obtaining business license (16.1 percent).

They called on the government to provide supports to improve profitability (42.9 percent), secure land by revising regulations (18.8 percent), offer tax and other financial aids on facility investment (14.3 percent), and expand local demand (11.6 percent).

Expanding the use of renewable energy resources would not only cut the greenhouse gas emissions but also reduce the country’s dependency on imports, observed Jeon In-sik, KCCI’s industrial policy team director. The government should move actively to boost the industry’s economic sustainability and resolve the conflicts among stakeholders for renewable energy’s stable growth, said Jeon.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]