SOUTH KOREA - Seoul, Sep 11 - The South Korean government and private companies plan to invest a combined 3 trillion won (US$2.7 billion) to develop clean energy resources over the next five years, officials said Thursday.

The blueprint, outlined at the “green energy development strategy” meeting at the presidential office, calls for the flow of funds into key technology and production support projects that could increase the country’s use of clean, reusable energy.

The Ministry of Knowledge Economy, which is responsible for the country’s energy policies, said clean
power production is gaining importance as South Korea comes under pressure to reduce various greenhouse
gases and cope with the high price of imported oil.

In the plan that will run through 2012, support will be given to solar and wind energy, light emitting diodes, and technology that merges information technology with power generation, which is currently in use, but could be made more efficient.

Money will also be used to improve hydrogen fuel cells, gas-to-liquid and coal-to-liquid engineering, integrated gasification combined cycle power plants, carbon capture and storage, and other advanced energy storage technologies.

The ministry said that of the total to be invested, the government will contribute 1.7 trillion won, with the private sector coming up with the rest. A detailed investment plan is to be announced by March.
It added that in order to spur the domestic green energy market, it will rewrite the current voluntary “renewable portfolio agreement” to compel power companies to produce a pre-set percentage of their total outputs with clean energy generation.

Such changes could make power companies generate at least 3 per cent of their total output through clean energy by 2012, with the target being raised to 10 per cent by 2020. Government officials said that if the plan is successful, the size of the local clean energy market could balloon to $17 billion in 2012 from just $1.8 billion last year.

Source: Tradingmarkets.com