IEA PVPS Task 1 Meeting, Kuching, Malaysia

IEA PVPS Task 1 Meeting, Kuching, Malaysia

Annual Installation (Newly Installed Capacities, MW) 22.3 45.3 275.7 166.8 126.6 78.8 295.2 530.7 926.3 1133.9 887.2 1180.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Cumulative PV Capacities 5681.6 4501.6 3615.2 (Cumulative Capacities, MW) 35.8 81.2 356.9 523.7 650.3 729.1 1024.3 1555 2481.3 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 *Source : KEA (2018)

Status of the Renewable Energy Supply in Korea 600,000 400,000 200,000 Status of the renewable energy supply in Korea (2001-2016) 총발전량 (GWh) Total power generation (GWh) 신재생에너지 Total renewable energy generation (GWh) 4.92 3.95 3.46 3.66 1.24 1.56 1.33 1.08 1.02 1.03 1.00 1.07 6.61 7.22 50,000 40,000 30,000 20,000 10,000 0.04 0.07 - '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 FiT RPS - *Source : KEA (2018)

Korea s Renewable Energy Mix Waste-E 56.1% Korea s Renewable Energy Mix (2016) Fuel-cellIGCC 2.8% 0.9% PV 12.6% Wind 4.1% Hydro 7.0% Ocean 1.2% Bio-E 15.3% PV Wind Hydro Ocean Bio-E Waste-E Fuel-cell IGCC *Source : KEA (2018)

1) Goals of RE 3020 Increase current proportion of renewable energy generation to 20% by 2030. Achieve 36.5 GW of PV and 17.7 GW of wind power generation by 2030. Current and New Targets for Renewable Energy (Proportion) Targets for Renewable Energy Mix by Source (Cumulative, GW) 30.0% 20.0% 10.0% 0.0% 11.7% 7.2% 2016 Current Target 20.0% 3020 Target 100 50 0 PV Wind Bio-E Waste-E Etc. 17.7 36.5 5.7 1.2 2017 2030 *Source : KEEI (2018)

2) Agenda 1: Enhance Public Acceptance Provide incentives for projects involving resident participation [Cooperative type] Local residents invest in a local renewable energy cooperative project [Fund type] Local residents invest in a renewable energy fund Improve the net-metering system Improvement of the Net-metering System (Draft) (Current) (Improvement) Use of surplus power after application of offset Carry forward Carry forward + Cash settlement Availability of net-metering House House + Condominium *Source : KEEI (2018)

2) Agenda 2: Expand RE Deployment Introduce the planned location system Case : Wind farms in the Southwest Sea Local governments designate sites private businesses Provide incentives for businesses sharing development profits Cases: Wind farms in the Southwest Sea, Solar power plants on the sites of nuclear power plants Launch large-scale projects utilizing idle lands Change regulations related with locations Develop models for large-scale, resident-participatory projects Cases: Reclaimed land, Salty Farmland, Unused National/Public Land, etc. *Source : KEEI (2018)

2) Agenda 2: Expand RE Deployment Analyze market potential to examine the feasibility of achieving goals 321 GW for PV and 39 GW for wind power: sufficient to ensure feasibility *Factors affecting market potential: Geographical Constraints, Technical Constraints, Economic Feasibility, and Regulatory and Support Policies Solar and Wind Power Targets and Market Potential (GW) Case: Calculation of PV Market Potential 2030 target (A) Market potential (B) (B/A) Solar 36.5 321 8.8 Wind 17.7 39 2.2 *Source : KIER/KEEI (2017)

2) Agenda 3: Secure Economic Feasibility The price of renewable energy generation is forecast to fall by 35.5% by 2030 Target of reducing the increasing electricity tariff to 10.9% by 2030 Lower supply cost by two-track R&D : 1) R&D on reducing unit cost, 2) R&D on creation of new markets Lower supply cost by improving policy Improvement of Policy to Lower Supply Cost (draft) Category Improvement of policy Large-scale projects Introduction of RE auction REC weight adjustment Small-scale projects Temporary adoption of FiT Purchase obligations for six major power companies *Source : KEEI (2018)

2) Agenda 3: Secure Economic Feasibility The unit cost of renewable energy is higher in Korea than in other countries Comparison of the PV and Wind Power LCOEs of Major Countries (KRW/kWh) Korea World average United States Europe Japan China PV (ground) 142.3 95 95 87 107 177 PV (buildings) 155.4 75 Wind (land) 150.0 75 62 79 144 121 Wind (sea) 283.2 141-139 - - Reducing the unit cost of renewable energy generation is crucial to achieving the goals *Source : KEEI (2018)

2) Agenda 4: Secure the Stability of the Grid System Improve the electric power market system Open a real-time electric power market and provide a real-time price signal Strengthen incentives for flexible resources and establish a reserve market Improvement of the Electric Power Market (draft) Energy Market Day-ahead Market Energy Market Day-ahead Market Real-time Market Capacity Price Ancillary Service Market Capacity Price Establish a comprehensive control system Include real-time prediction, measurement, and control of renewable energy generation Operate a local control system for some region Connectivity to the Northeast Asian Super Grid : An ultra-wide power grid connecting the countries of Northeast Asia *Source : KEEI (2018)

Energy Transition Target of Korea Establish a safe and clean power mix Gradually reduce nuclear and coal Expand renewable energy and LNG Target Power Mix (Capacity, %) Target Power Mix (Power Generation, %) 100% 80% 60% 40% 20% 0% 9.7 33.7 31.9 27.3 31.6 23 19.3 11.7 2017 2030 100% 6.2 16.9 20 80% etc. RE LNG Coal 60% 40% 18.8 45.3 36.1 Nuclear 20% 30.3 23.9 0% 2017 2030 etc. RE LNG Coal Nuclear *Source : KEEI (2018)

PV Industry in Korea (Silicon PV) Poly-silicon System Wafer Solar Cell PV Module Chemical Process (Purification) OCI (52,000 ton) Hanwha Chemicals Installation LG CNS, S-Energy, Hanwha Q-Cells Korea, KT, Topinfra, KD Power, Hileben, etc Growing & Slicing Woongjin Energy (1,500 MW) Surface Treatment Shinsung E&G (600 MW) LG Electronics (1,500 MW) Hanwha Q-cells Korea (3,800 MW) Hyundai Green Energy, etc Assembly LG Electronics (1,500 MW), Hyundai Green Energy, LSIS (150 MW), S-Energy (350 MW), Top Sun (150 MW), Hansol Technics (350 MW), Hanwha Q-Cells Korea (3,800 MW), Shinsung E&G (200 MW), etc Company Poly-silicon (ton) Ingot/Wafer (MW) Cell (MW) Module (MW) System Equipment Total 82,000 2,900/2,380 6,005 8,110 2,000 30

Materials and Parts Materials/Sheet Inverter Equipment SKC, Daejoo, Lotte Aluminium, SFC, etc Hex Power, Dasstech, etc SFA, Ever Solar Energy, Zeus, etc

R&D Strategy for Solar PV Application-specific PV R&Ds - BIPV Products Designed for Smart City - Agri-PV for Rural Farm Lands - Applications : Off-grid, Floating, PV-ESS Hybrids, etc. - Key Index : Cost Competitiveness to Reduce LCOE Crystalline Si PV Tech R&Ds - c-si Solar Cell with Kerf-less Wafer - Cost Minimizing Tech for c-si Solar Cells Next-generation PV Core Tech R&Ds - Perovskite SC - OPV - QDSC - Tandem SC * Source: KETEP (2017)

Agri-PV : Solar Sharing

On-water PV (Floating)

BIPV (Colored)

2040 Vision Towards Korea s Energy Transition - 8 th Electricity Demand & Supply Plan (2017.12) - Renewable Energy 3020 Plan (2017.12) - 13 th Natural Gas Demand & Supply Plan (2018.04)

We promise to make PVSEC-30 a Great Success! See you at ICC JEJU, Korea in November, 2020 Chinho Park Conference Chair of PVSEC-30 Korea Photovoltaic Society