Major Issues and Policies of Renewable Energy Industries in Korea : Based on Photovoltaics and Wind Power Industries

Representing green industries capable of resolving environmental problems, economic growth and job creation, renewable energy industries grew considerably, especially in Europe from the beginning of the New Millennium. Faced with a dwindling global market caused by the 2008 global financial crisis and the 2010 European default threat, the phtovoltaics (PV) industry continued its upbeat trend. On the contrary wind power industry slid back to one-digit growth. The future, however, does not seem so rosy. Government subsidy is being downsized in the world, along with diminishing demand. At the same time, more companies have packed the market, leading to over-supply in the world. The US development of shale gas commanded world attention and ironically worsened the situation. The development has functioned to suppress energy prices and further delayed grid parity. Designating the industry as a new strategic industry, the Korean government has been offering diverse policy supports to resolve its energy and environmental problems and to foster a new force for exportation. In response, large conglomerates and other companies have begun to develop relevant markets, forming solid industries. The rapid over-supply unfortunately led to fierce competition and price nose-diving from late 2011. The sudden change did not affect the fledgling wind power industry, but caused a severe restructuring in solar photovoltaic industry during the last year. One of the problems faced by the domestic industries is how to effectively complete restructuring in preparation for grid parity. What seems to matter most is to produce a short-term contingency plan to prevent competent companies from going under due to temporary financial hardship. On their part, the enterprises should not focus on survival only. They should pitch in to secure technological footing that is survivable in the future, while the government should prepare and promote an industrial eco-system conducive to innovation and coexistence. Competition in new and renewable energy industries will get fiercer, with China expected to take the center stage. Therefore, Korean companies cannot survive without a technological edge that surpasses China