International Journal of Engineering Research and Technology. ISSN 0974-3154, Volume 13, Number 12 (2020), pp. 4943-4952 © International Research Publication House. http://www.irphouse.com Review of Status of Wind Power Generation in South Korea: Policy, Market, and Industrial Trends Ji-Won Hwang1, Jung Keun Kook2, Han-Bin Jeong3, Ju-Hyun Mun4, and Sanghee Kim5,* 1Department of Architectural Engineering, Kyonggi University, Suwon 16227, South Korea 2Department of Architectural Engineering, Jeonbuk National University, Jeonju 54896, South Korea 3Department of Architectural Engineering, Kyonggi University, Suwon 16227, South Korea 4Department of Architectural Engineering, Kyonggi University, Suwon 16227, South Korea 5Department of Architectural Engineering, Kyonggi University, Suwon 16227, South Korea Abstract industrial and power generation sectors is a key means to realize reduction in GHG emission, and the aim of Various policies in South Korea have been implemented to implementing this system is to manage companies that emit reduce greenhouse gas emissions and to spread new and significant quantities of GHGs. To achieve the national GHG renewable (N&R) energy, and the cumulative wind-power reduction goal (reduction of the total emissions in 2017 by generation capacity was increased by approximately 2.6 times 244/1,000 by 2030), this system designates companies with from 2012 to 2018. The Korean version of the New Deal policy large GHG emissions and high-energy consumption as has been officially announced, and aggressive investment in companies to be managed, assigns reduction targets for GHG wind power generation has been secured. In this regard, this emissions and energy consumption, and verifies and manages study aimed to review related trends in the energy policy, their performances (Table 1). The targets of this system are market, and the overall industry. The government has companies and businesses whose average GHG emissions and established a total of four plans in relation to green energy. The energy consumption over the last three years (as of January 1st Fourth Plan is currently being implemented; its goal is to of the corresponding year) exceeded the criteria mentioned in increase the average annual growth rate to 16.5%. Companies the “Enforcement Ordinance of the Framework Act on Low have also invested to develop large-capacity wind turbines and Carbon and Green Growth.” Second, the ET offset system in components such as blades with a length of 60–80 meters and the industrial and power generation sectors is operated to a speed increaser of 2.5 MW. Incidentally, despite being green achieve the national GHG reduction goal (37% by 2030 energy, the power generation complex has raised many issues compared with Business As Usual (BAU)) in an efficient and in energy production or installation, especially low-frequency cost-effective manner. The purpose of this system is to improve noise (12.5-80 Hz). To overcome some issues, residents and the the flexibility of companies with GHG emissions in terms of government agreed on a peaceful solution, which involves the GHG production. The contents of this system are categorized profit-sharing and recovery model and the government into three. First, the government allocates emission permits to providing guidelines for low-frequency noise, including workplaces with GHG emissions for a year based on ET, so that management procedures and solutions. the workplaces can perform emission behavior within the Keywords: Renewable energy, Wind-power generation, allocated range. The practical GHG emissions of the Greenhouse gas, Korean New Deal. workplaces are evaluated to allow transactions between them for remaining or insufficient emission permits. Second, external businesspersons can sell the Korea Offset Credit (KOC) I. INTRODUCTION issued through external businesses to companies subjected to the allocation of emission permits based on the offset system; The seriousness of greenhouse gas (GHG) emissions has been then, the companies can convert the purchased KOC into acknowledged and understood throughout the world, as Korean Credit Unit (KCU) and perform offset or transactions manifested by the adoption of the Tokyo Protocol in 1997. under the ET scheme. Third, GHG emissions are reduced, Accordingly, many countries have initiated efforts to reduce absorbed, or removed in a way that meets international GHG emissions since 2005. South Korea has also been standards in emission facilities or activities outside the implementing various policies to reduce GHG emissions. boundaries of companies subjected to the process of allocation Currently, the three main GHG reduction policies in Korea are of emission permits through external businesses. Third, the ET 1) GHG and energy target management system, 2) emission reduction facility support project is proposed for the industrial trading (ET) offset system, and 3) ET reduction facility support and power generation sectors; the purpose of this project is to project in the industrial and power generation sectors [1]. First, induce the practical GHG emission reduction effect of the the GHG and energy target management system in the companies subjected to the process of allocation of emission 4943 International Journal of Engineering Research and Technology. ISSN 0974-3154, Volume 13, Number 12 (2020), pp. 4943-4952 © International Research Publication House. http://www.irphouse.com permits and to reinforce their ET implementation capacity by sea on three sides, and more wind power plants will be built in supporting the introduction of GHG and energy reduction the future. In July 2020, the President of South Korea set the facilities. This project supports the installation cost of facilities goal of joining the global top five countries in terms of offshore with excellent GHG and energy reduction effects for small and wind power by 2030 [8]. To this end, three directions were medium-sized companies among the companies subjected to established for increasing the offshore wind power of 124 MW the process of allocation of emission permits in the industrial generated from three complexes by 100 times to 12 GW in 2030. and power generation sectors. The president also mentioned that the government would provide active support for systematically developing large- scale wind power generation complexes led by local Table 1. Criteria for designating companies to be governments. He announced that sites with excellent business managed for GHG emissions [1] potential and small damage to the fishing industry would be GHG Energy identified, and that the licensing procedure would also be simplified for smooth project implementation. It was also Category (total (Tera announced that the initial demand could be created with large CO2) Joule) projects for domestic companies to increase their price competitiveness and technology competitiveness, and that the Company 125,000 500 Until December 31, investment in technology development would be continued. 2011 The president also said that a growth engine would be created Workplace 25,000 100 in response to the climate crisis using green energy and “offshore wind power.” Company 87,500 350 From January 01, 2012 As mentioned above, wind-power generation has attracted Workplace 20,000 90 considerable attention as a renewable energy source in Korea. Therefore, this study aimed to summarize the policies, international cooperation projects, and market and industrial Company 50,000 200 trends of wind-power generation in South Korea. In addition, From January 01, 2014 an attempt was made to predict the future of the wind-power Workplace 15,000 80 generation industry in South Korea. One of various methods used to reduce GHG emissions is the II. GOVERNMENT POLICIES use of new and renewable energy. Efforts to develop and utilize The Korean government has established policies mainly on the renewable energy have also been actively made in South Korea. “goal of developing, using, and spreading technologies,” Consequently, the “New Energy and Renewable Energy “proportion of the power generated,” and “implementation Development, Use, and Spread Promotion Law” [2] was method” since 2001 to promote the development, use, and established, and the “Fourth Basic Plan for the Development, spread of N&R energy technologies [1]. Starting with the Use, and Spread of New and Renewable Energy Technologies announcement of the “Basic Plan for the Development and (2014–2035)” is currently being executed [3]. The term “new Spread of Alternative Energy Technologies” in February 2001 and renewable energy (hereinafter referred to as N&R energy)” [9], the “Second Basic Plan for the Development, Use, and is used in Korea, and is defined as alternative energy sources Spread of N&R Energy Technologies (December 2003 to that can replace fossil fuels [4]. For N&R energy, new energy 2012)” was announced in December 2003 [10]. The “Third comprises three areas, namely, fuel cells, coal Basic Plan for the Development, Use, and Spread of N&R liquefaction/gasification, and hydrogen energy. Renewable Energy Technologies (December 2008 to 2030)” was energy comprises eight areas, namely, solar heat, photovoltaics, announced in December 2008 [11], and the “Fourth Basic Plan biomass, wind power, hydropower, geothermal heat, marine for the Development, Use, and Spread of N&R Energy energy, and waste energy. Among various N&R energy sources, Technologies (2014 to 2035)” was announced in September there is recently growing interest in wind-power generation. 2014 [3]. The