KOREAN-DANISH ENERGY COOPERATION
+ 45 33 92 67 00 Center for Global Cooperation ens@ens.dk
Korea is the twelfth largest economy and seventh largest emitter of energy related CO2 in the world. However, Korea has great ambitions for a climate friendly future, creating opportunities for even closer cooperation between Denmark and Korea within the green agenda. Since 2017, the current government has particularly ramped up the ambitions for green transition in the heavily industry and coal dependent nation. The ambition is clear: Renewable energy must generate 20 percent of Korea’s electricity demand by 2030 – compared to the current 7 percent.
In November 2020, President Moon additionally
announced a national goal of achieving carbon neutrality by 2050. The Ministry of Trade, Industry and Energy shortly after contacted the Danish Energy Agency and the embassy, to learn more about the process of the Danish Climate Act – further strengthening the existing cooperation between Danish and Korean energy authorities.
Fossil fuels have dominated the Korean energy system for many years – particularly coal power – which in 2018 accounted for more than two thirds of the energy generation for electricity. However, the political target of 12 gigawatt installed offshore wind capacity in 2030
has led to a boost in offshore wind investments. The potential for offshore wind in Korea is huge, with more than 2400 kilometers of coastline, and is necessary for their green transition, as the country is densely populated and mountains cover 70 percent of the land surface. The target is ambitious in a country, where growth has been at the center of attention in both population, government and industry for many years.
As a response to the COVID-19 crisis, the government of Korea presented the ‘New Deal’ in July 2020. As part of the deal, President Moon launched the ‘Green New Deal’, which entails a stimuli package of 61.7 billion USD in public investments towards 2025. The president wishes to boost the green job creation - among others through investments in offshore wind - a key engine in the transition from black to green energy in Korea: “The government’s goal is clear and is to become one of the world’s top five offshore wind energy powerhouses by 2030”.
As part of the ‘Green New Deal’, the Offshore Wind Collaboration Plan was announced, to outline which steps needs to be taken to reach installation of 12GW offshore wind by 2030. The plan focuses on strengthening
DANISH EXPERIENCES WITH OFFSHORE WIND INSPIRES KOREA ON THEIR WAY TO REACH AMBITIOUS OFFSHORE WIND TARGET IN 2030
Through government-to-government cooperation, Denmark supports the Korean ambitions on increasing offshore wind power, by sharing the Danish experience on the development of a cost efficient regulatory framework for offshore wind with Korea. The construction of 12 gigawatt offshore wind power will amount to more than 55 billion USD - thus creating great opportunities for Danish export of green energy technology.
APRIL 2021
KOREAN-DANISH ENERGY COOPERATION
+ 45 33 92 67 00 Center for Global Cooperation ens@ens.dk
the regulatory framework conditions for development of offshore wind with a focus on acceptance from the local population and Korean fishermen. A successful development of all Korea’s offshore windfarms are likely to create up to 87.000 jobs every year up until 2030.
An important green alliance between Denmark and Korea
The Korean government emphasizes three important alliances: The security alliance with the US, the trade alliance with China, and the green alliance with Denmark.
The fact that Denmark is mentioned alongside the region’s major players highlights - that the Green Growth Alliance established between the Korean and Danish governments in 2011 has contributed positively to position Denmark as an important partner for Korea in their green transition.
Korea is in many ways still in the beginning of a reform process - similar to the reforms in Denmark after the oil crises in the 1970s. Danish knowledge and experience within legislation, planning and installation is thus in high demand, not least when it comes to offshore wind energy. Denmark is highlighted as having the necessary technology, experience with One-stop-shop, public support for renewable energy projects through citizens’
participation, and low prices on offshore wind due to improvements in regulatory framework conditions.
Through the government-to-government cooperation with the Korea Energy Agency, the Danish Energy Agency shares experiences on how to create a cost efficient regulatory framework for offshore wind. The new Korean Offshore Wind Collaboration Plan includes the creation of a Korean modified One-stop-shop for the tender process of offshore wind projects, inspired by the Danish One-stop-shop concept. In November 2020, a draft for a Korean One-stop-shop law with reference to the Danish Energy Agency and the Danish One-stop-shop model was proposed in the Korean parliament. The law is currently pending approval in the parliament.
Korea is a pioneer within hydrogen and in 2019 presented an ambitious ‘Hydrogen Economy Roadmap’ towards 2040. The roadmap and Korean experience within hydrogen more generally may serve as inspiration for the development of the Danish Energy Islands. The Danish- Korean cooperation is thus benefitting and supporting the green transition in both countries.
• The cooperation with the Korea Energy Agency was initiated in 2019 and is financed through the Danish Finance Act and as part of the Energy Agreement in 2018. The cooperation is currently financed until 2024.
• From the Danish side, the Danish Energy Agency in close collaboration with the Ministry of Foreign Affairs and the Danish Embassy in Seoul is in charge of the cooperation.
• The cooperation with the Korea Energy Agency focuses on framework conditions for offshore wind power.
FACTS
Contact person:
Sine Matzen Christiansen Special Advisor
smcn@ens.dk
Phone +45 33 92 74 01
