Renewable Energy

100 Bln to Be Raised for Fund to Nurture Renewable Energy Field
An MOU on the establishment of the fund was signed by representatives



(below) Minister of Knowledge Economy
Choi Joong-kyung speaks at a meeting with those in the new and renewable energy field in the Renaissance Hotel in Seoul on March 23. Some 30 corporate representatives sign an MOU on a fund for guaranteeing shared growth in the field.

The government will create a 100 billion fund for guaranteeing shared growth in the new and renewable energy field in cooperation with big companies and financial institutions in order to nurture world-class enterprises.
Out of the fund, 60 billion will be raised by large companies, Korea Electric Power Corp. (KEPCO) and other power companies, as well as new & renewable energy SMEs. The remaining 40 billion will be provided by the Industrial Bank of Korea (IBK), Woori Bank and Shinhan Bank.
The Ministry of Knowledge Economy (MKE) signed an MOU on the establishment of the fund with MKE Minister Choi Joong-kyung and about 30 representatives from parties involved in the fund in attendance at the Renaissance Hotel in Yeoksam-dong, Seoul, on March 23.
Earlier, Minister Choi said in his speech at a meeting with those in the new and renewable energy sector, “The government is pushing ahead with the Triple 15 Strategy, calling for raising Korea’s share in the global photovoltaic power and wind power markets each to 15 percent by 2015, and it will do its utmost to nourish the domestic photovoltaic power and wind power industries as Korea’s second semiconductor and shipbuilding success stories.”
The United States, the EU, Japan, China and other major countries have been scurrying to lead the way in tapping the new and renewable energy fields due to key national policies of reducing greenhouse gas emissions and creating new jobs. In particular, Chinese firms have made a strong showing in the photovoltaic power and wind power segments.
The value of the global new and renewable energy markets, which saw an annual average growth rate of 32 percent in the past six years, is projected to surge from $243 billion in 2010 to $400 billion in 2015 and $1 trillion in 2020.
The global photovoltaic power segment is forecast to reach grid parity － the equivalent to fossil fuel-powered electricity generation costs － in three to four years because of technology development and price plunges. The value of the market is projected to surge to $113.6 billion in 2020. The global wind power segment, which is also nearing grid parity, leads in growth in the new and renewable energy fields with countries’ intensive investments.
MKE officials said now is the time for the nation to scrutinize what repercussions global developments such as the 9.0-magnitude earthquake in Japan and crude oil price hikes are having on the domestic new and renewable energy sectors.
Korean new and renewable energy concerns include the difficulties in securing funds despite a rise in massive investment demand to get a jumpstart in the global market. They have come up with plans to funnel a combined 33 trillion won into investing in the new and renewable energy fields during the period between 2011 and 2015.
The establishment of the fund will allow each prospective SME to receive a maximum of 1.6 trillion won in financial support.
Participants of the meeting with the MKE minister discussed the repercussions the earthquake and the nuclear power accident in Japan have to Korea’s industrial community. The latest developments affect no impact on the domestic photovoltaic power and wind power fields, which have no trade with Japanese concerns, but fuel cell makers are suffering from a shortage of Japanese-made parts due to the disruption of operations of related Japanese firms.
Midsize photovoltaic power companies, including S-Energy, Millinet Solar and Shinsung Holdings, wind power companies, including Taewoong and KM, as well as fuel cell maker Fuel Cell Power have talked about difficulties, including funding. nw

Photos on courtesy of MKE