Korea has emerged as a world leader in marine energy and is a critical player in solar
PV. Wind and solar powers are experiencing rapid growth in all three countries.
Grid-connected solar PV has expanded at an average annual rate of 60% since 2010,
while wind energy has had an average annual growth rate of 20% since 2010.
Viewed in terms of capacity development targets, China achieved its 2020 target
for wind energy in 2018. Japan and South Korea both achieved their respective 2030
targets for solar PV in 2018. Hydropower is a mature sector with a relatively slower
rate of growth of approximately 3.2%, similar to that of geothermal and bioenergy.
Other renewable energies, including marine energy (wave and tidal), remain smallscale.
19.3.2 Renewable Energy Policy in China, Japan,
and South Korea
We compared national policies from the perspectives of legislation, subsidies, tax
incentives, tradable certification, and green power certification (Table 19.2).
Japan and South Korea have provided various subsidies for the development of
renewable energy. Japan has provided more than 132.2 billion JPY for residential
PV power generation in order to promote substantial development of PV installations. South Korea has adopted subsidies for projects with market potential and
projects entering the commercialization stage. Renewable energy subsidies in China
are more diversified; the central government provides key industries with free
subsidies and loan discounts. The renewable energy electricity price system has
promoted industrial development and construction of facilities.
In terms of tax incentives, the renewable energy industry receives preferential
treatment. The 10% cost of reforms by Japanese companies in energy saving can be
deducted from income tax. South Korean renewable energy manufacturers and
consumers receive up to 80% of loan amounts. Policies for the acquisition of land
for wind power in China include land tax reduction and exemption, half value-added
tax, and other collection policies. Furthermore, tradable certification and a green
power certification system encourage industrial development through market
mechanisms.
19.3.3 Renewable Energy Technology Development in China,
Japan, and South Korea
Renewable energy resources have two main disadvantages, fluctuation and low
density (IRENA 2019). Therefore, we divided analysis of renewable energy technology development into two parts. The first is the amount of potential renewable
energy introduced, which is analyzed in this section from technology and market
346
Y. Ling et al.
PV. Wind and solar powers are experiencing rapid growth in all three countries.
Grid-connected solar PV has expanded at an average annual rate of 60% since 2010,
while wind energy has had an average annual growth rate of 20% since 2010.
Viewed in terms of capacity development targets, China achieved its 2020 target
for wind energy in 2018. Japan and South Korea both achieved their respective 2030
targets for solar PV in 2018. Hydropower is a mature sector with a relatively slower
rate of growth of approximately 3.2%, similar to that of geothermal and bioenergy.
Other renewable energies, including marine energy (wave and tidal), remain smallscale.
19.3.2 Renewable Energy Policy in China, Japan,
and South Korea
We compared national policies from the perspectives of legislation, subsidies, tax
incentives, tradable certification, and green power certification (Table 19.2).
Japan and South Korea have provided various subsidies for the development of
renewable energy. Japan has provided more than 132.2 billion JPY for residential
PV power generation in order to promote substantial development of PV installations. South Korea has adopted subsidies for projects with market potential and
projects entering the commercialization stage. Renewable energy subsidies in China
are more diversified; the central government provides key industries with free
subsidies and loan discounts. The renewable energy electricity price system has
promoted industrial development and construction of facilities.
In terms of tax incentives, the renewable energy industry receives preferential
treatment. The 10% cost of reforms by Japanese companies in energy saving can be
deducted from income tax. South Korean renewable energy manufacturers and
consumers receive up to 80% of loan amounts. Policies for the acquisition of land
for wind power in China include land tax reduction and exemption, half value-added
tax, and other collection policies. Furthermore, tradable certification and a green
power certification system encourage industrial development through market
mechanisms.
19.3.3 Renewable Energy Technology Development in China,
Japan, and South Korea
Renewable energy resources have two main disadvantages, fluctuation and low
density (IRENA 2019). Therefore, we divided analysis of renewable energy technology development into two parts. The first is the amount of potential renewable
energy introduced, which is analyzed in this section from technology and market
346
Y. Ling et al.