IMARC Group has recently released a new research study titled “South Korea Renewable Energy Market Report by Type (Wind, Solar, Hydro, and Others), End User (Industrial, Residential, Commercial), and Region 2025-2033”, offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends and competitive landscape to understand the current and future market scenarios.
South Korea Renewable Energy Market Overview
The South Korea Renewable Energy Market size was valued at 55.6 TWh in 2024 and is expected to reach 124.7 TWh by 2033, growing at a CAGR of 8.6% during 2025-2033. The growth is driven by favorable government policies, continuous advancements in clean energy technology, and increased demand for sustainable energy solutions. For in-depth details, visit the South Korea Renewable Energy Market
Study Assumption Years
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
South Korea Renewable Energy Market Key Takeaways
- Current Market Size: 55.6 TWh in 2024
- CAGR: 8.6% during 2025-2033
- Forecast Period: 2025-2033
- The market is propelled by supportive governmental policies including the Renewable Portfolio Standard and various financial incentives such as tax benefits and subsidies.
- Technological advancements in solar, wind, and hydroelectric power are enhancing efficiency and cost-effectiveness.
- The Seoul Capital Area has high renewable energy demand due to its large population and ambitious environmental policies, while the industrialized Yeongnam region focuses on wind and solar power adoption.
- Major challenges include the high initial costs of renewable projects and continued dependency on fossil fuels.
- The government’s Green New Deal aims to generate 20% of power from renewables by 2030 and invest heavily in wind, solar, and hydrogen energy.
Sample Request Link: https://www.imarcgroup.com/south-korea-renewable-energy-market/requestsample
Market Growth Factors
The South Korea renewable energy market is largely driven by supportive governmental policies promoting renewable adoption. For instance, the government’s Renewable Portfolio Standard and financial incentives like tax benefits and subsidies encourage both businesses and consumers to shift towards renewable energy solutions. This regulatory support is a key factor behind the market’s growth.
Technological advancements are enhancing renewable energy sources’ efficiency and affordability. Substantial investment in research and development (R&D) has improved solar photovoltaics (PV), wind power systems, and hydroelectric infrastructure. These developments are making renewable energy more competitive with conventional energy, which drives demand further.
Moreover, rising societal demand and public awareness for sustainable energy play a crucial role. The government’s Green New Deal targets 20% renewable power generation by 2030 and commits USD 6.8 billion through 2025 for wind, solar, and hydrogen projects. These ambitious targets and the increasing focus on reducing greenhouse gas emissions provide growth momentum for the sector.
Market Segmentation
Breakup by Type:
- Wind: The market includes onshore wind power with significant potential in coastal and rural areas, supported by large-scale wind farms.
- Solar: Growing substantially due to declining costs of photovoltaic technology, supported by rooftop, large-scale farms, and floating solar projects.
- Hydro: Supported by well-established hydroelectric power infrastructure with several large dams and plants.
- Others: Not specifically detailed in the source.
Breakup by End User:
- Industrial: Major energy consumer with significant demands; increasingly adopting renewable energy to reduce costs and meet sustainability goals.
- Residential: Not provided in source.
- Commercial: Growing adoption of solar PV systems for offices, shopping centers, and warehouses, especially rooftop and parking lot installations.
Breakup by Region:
- Seoul Capital Area: Significant renewable energy demand due to large population, high consumption, and proactive environmental policies.
- Yeongnam (Southeastern Region): Industrialized region with high energy consumption and increasing interest in wind and solar power.
- Honam (Southwestern Region): Mix of agricultural and residential areas with growing renewable energy interest.
- Hoseo (Central Region): Not provided in source.
- Others: Not provided in source.
Regional Insights
The dominant region is the Seoul Capital Area, comprising Seoul, Incheon, and Gyeonggi Province. It exhibits significant demand for renewable energy driven by its large population, high energy consumption, and ambitious environmental policies like mandatory solar installations and energy efficiency programs. This region leads renewable energy adoption in the country.
Recent Developments & News
- August 2024: South Korea’s Vice Minister of Trade, Industry, and Energy launched the Offshore Wind Power Competitive Bidding Roadmap at a conference with industry leaders at the Korea Chamber of Commerce and Industry (KCCI) in Seoul.
- July 2024: Peak Energy signed an agreement with Shinsung E&G and YSP to establish a 50 MW solar portfolio in South Korea.
- June 2024: The South Korean government announced an auction for clean-hydrogen-fired power generation, targeting up to 6,500 GWh per year over a 15-year period starting in 2028, equivalent to a 100MW baseload power plant.
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