South Korea to give incentives for energy storage as part of renewables spending spree

With Asia now leading the way in solar manufacturing and development it seems that South Korea does not want to be left behind, as it outlines fresh incentives for solar plus storage and commits to large-scale renewable spending over the coming years. The Ministry of Trade, Industry and Energy made the announcements amidst Asia Power Week, which is currently taking place in South Korea’s capital Seoul.

The new storage scheme looks to encourage solar developers and large-scale operators to install storage systems alongside utility-scale solar plants by offering additional points on assessment of their renewable energy certificates. The program, which will begin in 2017, is part of the government’s efforts to support and enhance the country’s renewable energy market, specifically by developing the necessary infrastructure and support for renewable energy deployment.

The large-scale energy storage market in South Korea is currently experiencing a dramatic incline with 240 MWh installed by the end of 2015, and the Korean Electric Power Corporation (KEPCO) working with Korean battery provider Kokam for more large-scale storage projects. With this incentive, the government expects there will be 440 billion won (USD391.6 million) of new demand for energy storage by 2020.

In addition to the incentives for energy storage, the Energy Ministry also announced that the country had committed to invest USD 27 billion in renewables energy over the next five years. This is to help the country achieve its target of having 6% of its energy mix carbon-free by 2020, and to reduce its carbon emissions by 37% by 2030.