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South Korea’s Green New Deal to create sustainable ecosystem with offshore wind and solar PV playing pivotal roles

South Korea, one of the top CO2 emitting countries in the world, proposed a ‘Green New Deal’ to help accelerate the country’s transition towards the creation of a sustainable ecosystem by attaining net-zero emissions by 2050 and mitigate the risk of climate crisis. The deal affirms South Korea’s desire to make big advancements in the renewable energy (RE) sphere, attaining at least 20% of green power generation in the mix, with solar PV power reaching more than 36GW  and wind offshore capacity reaching 12GW by 2030, says GlobalData, a leading research and analytics company.  

South Korea targeted the power generation sector first for transformation to tackle the growing emissions. The power generation sector, which has over 50% share in the country’s total carbon emissions, is set for a sustainable transformation with the share of coal in the generation mix diminishing from the current 45% to around 30% by 2030 and 10% by 2050.  

2017 04 20 114457Ankit Mathur, Practice Head of Power at GlobalData, comments: “In the third energy master plan, by 2040, South Korea desires to have renewables shape 30-35% of the generation blend. As per GlobalData estimates, the current transition will see the country’s generation mix having 19% of the generation from renewable sources (including hydropower) by 2030, very close to the 20% target by 2030. The country would need to create a plan of retiring the coal projects and installation of renewable projects to ensure the power demand is met without any major hiccups.”  

South Korea is under increased scrutiny to reduce carbon emissions and the climate advocates are proposing a complete coal phase out by 2030 in line with the Paris Agreement. According to GlobalData, the current renewable (including hydropower) share in the capacity mix stands at 20%, and is likely to almost double by 2030. However, in order to faciliatate the sustainable transition, the government needs to implement an array of measures such as carbon tax, end to coal financing and focus on renewables to discourage coal usage.  

Mathur concludes: “Due to the the country’s world-class marine plants and shipping construction infrastructure, there are significant opportunities in the floating offshore wind segment. International companies, in partnership with the local Korean companies and workforce, can support the government's Green New Deal strategy by stimulating the economic growth and create employment opportunities. 

“GlobalData estimates the new capacity build of 48.5GW between 2020 and 2030 will be dominated by non-carbon emitting sources with 73% share, driven majorly by solar PV and wind installations. By 2030, the expansion of the offshore wind segment is anticipated to make it the larger performer in the overall wind segment, which would complement the massively strong solar PV segment to help the nation witness the green transition.” 

  • Comments provided by Ankit Mathur, Practice Head of Power at GlobalData
  • This press release is written using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts 

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.

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Renewable energy in Chile gets more attractive with its major capacity build-up during 2019-30

The Chilean renewable market stands to reap the benefits of its renewables’ potential and intent to lower the price of electricity for the customers. The country has put in gigantic efforts to promote renewable expansion to contribute to its decarbonization plan and achieving the target of attaining carbon neutrality by 2050. The Chilean renewable capacity, including hydropower, presently contribute to around 47% of the capacity mix while Fossil fuel rules the remaining 53%. Chile’s capacity mix is estimated to witness a major upside by 2030, with renewables (including hydropower) accounting for more than 70% of the power capacity mix, says GlobalData, a leading data and analytics company.    

2017 04 20 114457Somik Das, Senior Power Analyst at GlobalData, comments: “The country is firmly planning to retire its coal power generation fleet and to prioritize renewable energy (RE) sources that would not require damming or diverting water resources impacting the environment. Due to Chile’s vulnerability to future changes in the climatic conditions, GlobalData estimates that during 2019-2030, almost 30GW of new power generation capacity will be built. Out of this, 90% of the new capacity will be renewable in nature. Solar PV and Wind will lead the renewable capacity built together contributing more than 70% of the capacity.  

“GlobalData’s projects database defines the robust market attractive with more than 8.9GW of wind projects and 21.9GW of solar PV projects under various stages of development.” 

Chile has a plan to phase out coal-fired power plants by 2040 and achieve carbon neutrality by 2050. To provide an unwrinkled road to a smooth transition and risk-free environment to the investors would need an established supply chain, policy support, and continuous visibility of the market. During the H1 2020, the country’s renewable sector has already witnessed a high number of M&A and ‘Asset Transaction’ financial deals compared to the same period last year. Solar PV technology saw three times more financial deals amounting to US$4bn, followed by wind at US$1.2bn and hydropower at US$0.3bn.   

Das concludes: “Chile has been particular about the environment and its resources, in the generation front, it is trying to reduce coal-based power generation which formed as high as 45.6% in 2013 to 5-15% of the generation blend, in 2030. The current Chilean energy transition vision and trajectory towards an increasingly clean and efficient matrix has provided the investors with the confidence of a stable and lasting market with good returns.” 

  • Comments provided by Somik Das, Senior Power Analyst at GlobalData
  • This insight was based upon data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts 

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.                                                                                                                  

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APAC to lead global wind gearbox and direct-drive equipment markets over next four years, says GlobalData

Asia-Pacific (APAC) is expected to continue to lead the global wind gearbox and direct-drive equipment markets between 2020 and 2024 with a projected market share of 50.7% and 64%, respectively, says GlobalData, a leading data and analytics company.    

GlobalData’s latest report, ‘Wind Gearbox and Direct-Drive, Update 2020 - Global Market Size, Competitive Landscape and Key Country Analysis to 2024, reveals that the dynamic shift towards low carbon modes of power generation, improvements along the supply chain and technology maturity are creating viable business opportunities within the wind power sector.

Emerging economies are beginning to embrace wind, which is driving new installations while prominent markets such as China, the US and EU, with their legacy installations, are creating a significant market for gearbox refurbishments.

The global installations of wind gearbox and direct-drive equipment are estimated to aggregate 221.2GW and 78.1GW, respectively, over the forecast period.

In 2019, the global total installation of wind gearbox stood at 41.2GW as compared to 13GW for direct-drive. Although gearbox will continue leading the market over the forecast period in absolute terms, the direct-drive market is projected to witness higher growth, as they offer lower system weight, higher reliability due to fewer parts, and reduced maintenance, with higher power ratings. The direct-drive market is expected to witness an annual installation of 17.5GW, i.e., 27% of the total installation in 2024.   

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Nirushan Rajasekaram, Power Analyst at GlobalData, says: “Within APAC, major countries such as China, India and Australia are significantly driving the direct-drive market, with other countries such as Japan, South Korea and Taiwan playing a minor role in supporting the market. Similarly, for wind gearbox equipment, trends in the major markets of China and India will underpin the regional gearbox market, which is estimated to grow at a compound annual growth rate (CAGR) of 7%, over the forecast period.”

China accounted for approximately 38% of the global gearbox market value in 2019. The country is committed towards enhancing its renewable portfolio, to sustain its development agenda and the growing electricity demand, while reducing power sector emissions. However, the market is projected to decline over the forecast period, due to policy changes instituted by the government.

Rajasekaram adds: “India is estimated to be the fastest growing market for gearbox, growing at a CAGR of 19.5% over the forecast period. Similar to China, the government has proposed ambitious renewable energy targets, which are expected to drive the wind equipment market. With respect to the refurbishment market, the large-scale historical installations of wind turbines in China will drive the regional market value for gearbox refurbishment, which is projected to grow significantly over the forecast period.”

However, despite the positive outlook for wind gearbox and direct-drive markets, certain market uncertainties exist. The emergence of other technologies, changing regulatory landscape, and financial constraints threaten the market. Major countries such as China and the US are likely to experience a market slowdown. Nevertheless, opportunities for refurbishment are plenty, owing to legacy turbine installations in the aforementioned countries.

Rajasekaram concludes: “The growing role of smart technologies and other low carbon modes of power generation could result in wind power becoming uncompetitive and thereby limiting its growth prospects. Countries with significant wind capacities are exploring other clean power generation sources, while emerging markets will require the construction of sufficient grid infrastructure to support new generation capacity addition, which could slow the overall market deployment of wind power.”       

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BASF New Business and G-Philos sign MoU for cooperation in power-to-gas (P2G) business

BASF New Business GmbH (BNB), a wholly owned subsidiary of the German chemical company BASF SE, and the leading Korean P2G system company G-Philos have signed a memorandum of understanding (MoU) to cooperate in P2G projects globally. Up to 2022, BNB will supply NAS® batteries that can provide a total of 19.2 MWh of energy to G-Philos for P2G projects. BNB will support G-Philos in further P2G projects and in the development of business with Power Conversion Systems (PCS) for NAS® batteries in South Korea as well as in the global market. Through the collaboration, the two companies expect synergy effects in the field of P2G systems for green hydrogen production.

  • Up to 2022, BNB will supply NAS® batteries to G-Philos for P2G projects

Green hydrogen production from renewable energies, such as solar, wind and hydro, without CO2 emissions has been drawing ever-more global attention in recent years. In South Korea, the Green New Deal comprises plans to invest KRW 73.4 trillion ($61 billion) in projects, including renewable energy and hydrogen, as a part of South Korea’s policy to transform into a low-carbon society. P2G technologies will be one of the key elements of this plan. South Korea is expanding its renewable energy supply and clean hydrogen production in a similar manner to the E.U., which recently announced its own Hydrogen Strategy. With the recently signed MoU, BNB and G-Philos are now joining forces to support the expansion of green hydrogen production from renewable energy.

BNB distributes NAS® batteries produced by NGK Insulators Ltd. NAS® batteries are high-energy, long-duration sodium-sulfur batteries designed for stationary energy storage. With their capability to discharge for 4–8 hours, NAS® batteries are ideally suited for applications such as renewable power stabilization and integration into the grid. In order to use the electrical energy stored in the battery, a power conversion system (PCS) is needed.

BNB distributes NAS® batteries produced by NGK Insulators Ltd. NAS® batteries are high-energy, long-duration sodium-sulfur batteries designed for stationary energy storage.BNB distributes NAS® batteries produced by NGK Insulators Ltd. NAS® batteries are high-energy, long-duration sodium-sulfur batteries designed for stationary energy storage.

G-Philos has developed a suitable PCS for a 200 kW NAS® battery system. The battery and the PCS have already been commissioned in a P2G project implemented by G-Philos in collaboration with Korea Midland Power (KOMIPO) at Sangmyung Wind Farm (21 MW), Jeju Island, South Korea. In this case, the NAS® battery serves as an energy buffer between wind turbines and electrolyzers to ensure stable hydrogen production from surplus wind power despite the fluctuating nature of wind. G-Philos can now supply PCS products for the NAS® battery systems ranging from 200 kW up to 800 kW.

Gawoo Park, CEO of G-Philos, said: “In order to stably produce green hydrogen while accommodating the variability of renewable energy, the NAS® battery is expected to play an important role in securing system operation safety and reliable long-term operation as an energy buffer. G-Philos will keep focusing on commercializing green hydrogen production through various P2G projects.”

BNB’s Director of E-Power Management, Frank Prechtl, said: “Green hydrogen production is an upcoming market and a promising application for NAS® batteries. With G-Philos, we now have a strong and competent partner to develop this opportunity into a sizeable business.”

About BASF New Business 

BASF New Business GmbH (BNB) is a wholly owned subsidiary of BASF SE. The purpose of BNB is to support the growth targets of BASF by identifying and generating new businesses which are beyond the core business of BASF group but within target portfolio of BASF. BNB is primarily active in arising markets with higher-than-average growth rates. In addition to its head office in Ludwigshafen, Germany, BNB has offices in Hong Kong, Korea, Japan, Taiwan and the United States. Founded in 2001, BNB utilizes startup-like structures and methods as well as an extensive internal and external collaboration network. It works closely with future customers to build-up and expand new businesses.

BNB includes the unit Foresight & Scouting as well as Chemovator GmbH, a wholly owned BNB subsidiary based in Mannheim, Germany, which serves as BASF’s internal incubator, offering a protected space for all employees to accelerate speed-to-market for innovative business ideas. In addition, BNB currently has three Business Build-Up units: 3D printing (in the form of wholly owned BNB subsidiary BASF 3D Printing Solutions GmbH), E-Power Management and Functional Feed Additives.

The activities of BNB are complemented by BASF Venture Capital GmbH (BVC), a wholly owned subsidiary of BNB. BVC invests worldwide in young companies and funds with disruptive technologies and business models based on chemistry.

Further information at: www.basf-new-business.com.

About BASF

At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. More than 117,000 employees in the BASF Group work on contributing to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio is organized into six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated sales of €59 billion in 2019. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the U.S.

Further information at www.basf.com.

About G-Philos

G-Philos has been on the right path to realizing its vision of becoming a global leader in the development and manufacture of power conversion systems for renewable energy applications since 2009.

After investing considerable efforts into developing and manufacturing highly efficient power conversion systems for over 10 years, G-Philos has established itself as a market leader in power conversion systems (PCS) for fuel cells and power-to-gas (P2G) systems linked to renewable energies for green hydrogen production in Korea.

Further information at www.g-philos.co.kr

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Croatia’s adopts auctions to drive renewable growth in power mix, with solar PV to represent 50% of tendered capacity, says GloblaData

The Croatian Government introduced a provision to assign 2.26GW of renewable energy capacity under an auction scheme, which includes technologies such as hydropower, wind, solar PV, biopower and geothermal energy. GlobalData predicts that auctions such as these will help develop the Croatian renewable sector and support the country towards its target of producing 36.4% of its electricity generation from renewables by 2030.

Somik Das, Senior Power Analyst at GlobalData, comments: “GlobalData estimates that generation from renewables (including small hydro) contributed around 20% of Croatia’s overall power generation in 2019. Wind has been the key technology in the segment, forming 12.7% of generation. However solar, which formed a negligible share last year, is on the rise and is anticipated to be the fastest-developing segment over the decade.

2017 04 20 114457“With these auctions, it is anticipated that the solar PV project pipeline will see substantial increase from the current 109MW of small solar PV projects in the pipeline in various stages of development.”

The auction comes as a portion of the decree adopted on quotas to incentivize the generation of electricity from renewable energy sources and high-efficiency cogeneration. The key objectives of the strategy are guaranteeing sustainable energy generation in Croatia over the following ten years, with projections until 2050.

Das added, “As renewables become more competitive and achieve grid parity across the globe, Croatia will not want to be left behind in the renewables race. The bigger picture encompasses the sustainable environment, where, until 2050, the strategy will aid the nation in accomplishing its objective of cutting down on carbon dioxide emissions by 36%.”

  • Comments provided by Somik Das, Senior Power Analyst at GlobalData
  • Among these technologies solar PV  has the largest capacity share of over 1GW to be tendered in multiple auctions. The first auction saw Croatian electricity and gas regulator Hrvatski Operator Tržišta Energije (HROTE) announce a tender for 88MW of renewables capacity. The authority apportions 50MW of solar capacity, 15MW of biogas, 14MW of biomass, and 9MW of hydropower.
  • To expand the competitiveness and allure of the solar PV segment, the maximum tariff was set at €0.084 (US$0.10)/kWh in comparison to €0.178 (to $0.21) per kWh for biomass and €0.10(US$0.114)/kWh for other technologies. Successful projects will be awarded a feed-in price premium, which will be paid on top of spot market prices.

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.