New and Renewable Energy RD&D Basic Plan

In February 2001, the government announced a New and Renewable Energy RD & D Basic Plan, which updated the programme begun in 1987, as a renewed framework for further development of renewables. Wind and photovoltaic power are targeted as top-priority technology areas on which the government will focus its R & D support. Other areas targeted are solar thermal, waste and biomass. From 2001 to 2006, the government plans to invest around US$ 800 million to disseminate renewable energy technology. It envisages the following measures: - Providing financial support and preferential tax treatments for RD & D renewable technologies. Financial assistance includes low-interest loans (5.5% with a three-year grace period and five years to repay) for companies that install renewable energy technologies. A company can deduct up to 10% of its investment in R & D on renewables from its corporate tax. - Introducing renewable portfolio standards (RPS) and making it mandatory for wholesale purchasers of electricity to buy at least 1% of their electricity from renewables. So far, this concerns only KEPCO. The government is also planning to require public institutions to buy renewable energy equipment. The aim is to meet 2% of the total energy demand from public institutes through renewable energy sources. - Establishing a mechanism by which surplus electricity sold to KEPCOs grid from renewable energy facilities will be purchased at rates that provide sufficient incentives to make renewable energy projects viable.

Want to know more about this policy ? Learn more