KOTRA "Expanding Opportunities to Enter US Energy Market Including Solar Power and Offshore Wind"

[Asia Economy Reporter Su-yeon Woo] With the Biden administration's massive investment announcements and various policy supports, the U.S. renewable energy industry has entered a full-fledged growth trajectory, raising expectations that opportunities for Korean companies to enter the market will expand, particularly in the solar power and offshore wind sectors.

KOTRA published a report on June 12 analyzing the U.S. renewable energy market and energy transition trends, reviewing the U.S. renewable energy market and policy trends, and suggesting entry strategies for Korean companies.

According to the report, last year, the installed capacity of wind and solar power in the U.S. reached an all-time high. Wind power capacity increased by 85.1% year-on-year to 16,913 MW, while solar power capacity more than doubled to 11,158 MW. As a result, the share of renewable energy generation, including wind and solar power, rose to 21%, surpassing nuclear (19%) and coal (19%) power generation.

This increase in the share of renewable energy generation is attributed to the U.S. government's $1.2 trillion infrastructure investment plan announced in June, which includes the energy sector, as well as state-level renewable energy support policies such as Renewable Portfolio Standards (RPS) and Net Metering.

It is projected that by 2050, the share of renewable energy generation in the U.S. will expand to 42%. Additionally, investments by related companies are expected to exceed $39 billion in the renewable energy industry by 2022.

Among these, wind power capacity is expected to increase more than 3.5 times compared to the current level by 2050. Offshore wind power, which had been slow to develop, is gaining momentum, especially with active projects centered in the U.S. Northeast region, leading to increased demand for related items such as turbines and floating marine structures.

Furthermore, solar power is expected to grow as a key energy source, accounting for 47% of the total renewable energy generation share in the U.S. by 2050. This growth is mainly due to the significant increase in residential solar installations in Arizona, California, and Texas, along with improved market conditions following the extension of the Investment Tax Credit (ITC) for solar power facilities.

The report emphasized that Korean companies need to continuously monitor the energy transition trends occurring in the world's largest market, the U.S., and actively discover and participate in related projects.

In the case of wind power, companies can utilize 'Offshore Wind US,' a platform operated by local consortia to build supply chains, especially in the offshore wind sector. Through this site, companies can check project information issued by state governments and major corporations and participate in bidding to seize market entry opportunities.

Additionally, the U.S. Solar Energy Industries Association (SEIA) provides a supplier database (DB), and foreign companies can register if they meet the requirements. This can be used to explore potential partners for joint project entry. The report also stressed the need to secure competitiveness through cost reduction and technology development, as well as to build close networks with industry stakeholders by participating in exhibitions, given the expected increase in component demand due to investments in renewable energy generation facilities.

Kim Jong-hyun, Director of KOTRA Dallas Trade Center, stated, "The U.S. energy industry, which heavily relied on shale resources, is transitioning to renewable energy," adding, "It is necessary to preempt the market through responding to changing demand, securing product competitiveness, and active marketing activities."

This content was produced with the assistance of AI translation services.