Proposal for Promotion of the Solar Photovoltaic Power Industry in Korea

Abstract

This paper focuses on the crucial role of solar power generation in addressing global warming. It examines South Korea's solar technology, which demonstrates high proficiency at approximately 90% (EU standard) and outperforms the EU in system operation and maintenance. Despite China's lower technological score (87.5%), its competitive pricing has led to an increase in the market share of Chinese products, eroding South Korea's competitiveness. The research identifies cost issues compared to coal and explores avenues for improvement, particularly in direct and indirect cost aspects. In the direct cost domain, proposals include establishing solar cell production facilities in countries with low labor costs and favorable tax incentives to reduce equipment costs. In the indirect cost domain, suggestions involve leveraging building-integrated solar and unused land to cut permit and financial expenses. The paper highlights reasons for the inadequate adoption of building-integrated solar in South Korea, such as mortgage issues, pricing constraints due to the System Marginal Price (SMP) system, and the limited deployment of microgrids. Emphasis is placed on the activation of microgrids, introducing new transaction methods and promoting efficient power transactions through infrastructure. These efforts are expected to lead to the sustained growth of the solar power generation industry in the future.