S. Korea plans $72M for renewable energy

The South Korean government said today it plans to spend 100 billion won ($72.2 million) to spur renewable energy production.

The renewable energy fund is expected to attract private investment in solar, wind and hydroelectric power generation.

The money will also be used to build renewable projects, including 26 wind power generators on the country's east and west coasts this year. The Ministry of Knowledge and Economy said it also plans to conduct feasibility studies for a 40-megawatt wind farm on the Saemangeum reclamation site.

Government officials said South Korea's domestic market for renewables has been dominated by foreign suppliers. The $72.2 million investment is expected to help local companies win future orders.

Companies including SunPower, Solar Power Inc. and Epuron have invested heavily in the Korean market in the past year. A JP Morgan report last year said South Korea is going to be one of the fastest growing solar markets during the next four years, potentially growing power generating capacity 89 percent to nearly 1 gigawatt from solar.

The desire for renewable energy prompted South Korean officials in November to announce plans to collaborate with Indonesia on a biofuel-from-seaweed project using South Korea's researchers and Indonesia's supply of seaweed (see Indonesia, S. Korea partner for seaweed biodiesel).The country is the ninth-largest oil consumer and fifth-largest oil importer in the world.