Korea to invest US$36bil. in renewable energy sector by 2020

As part of the government's drive to pursue cleaner energy sources,… officials have drawn up a multi-billion dollar investment plan in the renewable energy sector. Kim Min-ji has the details. The Korean government will invest 42 trillion won,… or over 36 billion U.S. dollars in the renewable energy sector by 2020. This comes as part of its efforts to promote the widespread use of eco-friendly energy sources in the country,… as more than 70 percent of Korea's power comes from non-renewable sources. The majority of the budget will be used for the construction of renewable energy power stations by 2020 that will generate 13 million kilowatts of electricity every year — the equivalent produced by 26 coal plants. The government will also boost its scheduled renewable portfolio standard — which requires a mandatory ratio for renewable power production within the country. The RPS will be raised from the target of 4-point-5 percent..

. to 5 percent in 2018,… and from 6 percent to 7 percent by 2020. It will also get rid of the excessive red tape around renewables by allowing individuals to sell the electricity they produce using their own solar panels. The plan also calls for the private sector to gradually supply electricity to consumers, which will likely encourage companies to step up their investments in the industry. Until now,… only state-run corporations have been allowed to buy and distribute electricity in the country. Through these initiatives,… the government expects to generate over 14 billion dollars in domestic consumption and create over 120-thousand new jobs by 2020. Energy generated from renewable sources is also expected to reach over 20 percent of total output by 2029,… up from about eight percent in 2015. It's an ambitious goal but Korea still has a way to go. "Korea's situation for renewable energy is quite low. We declared 11 percent until 2029 but changed it to 20 percent. But compared to the EU, it's very low.

We need a good financing system. In that way, the private sector will have confidence about this market. Citizens involvement is also very important." On top of that,… experts say the government's desired effects will only come under the condition that the policies and investments are maintained in the administrations to come,… as it's not something that can be done overnight. Kim Min-ji, Arirang News..