FKI Proposes '20 Key Tasks for Revitalizing the Clean Energy Industry' to the Transition Committee

Investment Scale in Clean Energy Industry Reaches 20 Trillion Won
"Urgent Need to Establish Industrial Ecosystem"

[Asia Economy Reporter Park Sun-mi] As the total investment scale in the clean energy industry by companies is expected to reach 20 trillion won over the next 10 years, the Federation of Korean Industries (FKI) has submitted 20 key tasks to the Presidential Transition Committee to revitalize the clean energy industry.

On the 3rd, the FKI announced that it had proposed tasks to the Presidential Transition Committee to promote the clean energy industry, including hydrogen, nuclear power, solar and wind power. These tasks, proposed after gathering opinions from major companies, include ▲establishing public-private participatory clean energy cities, ▲prompt passage of the Hydrogen Act, ▲the new government's declaration of commitment to implementing the hydrogen economy, ▲building clean energy infrastructure and support mechanisms, and ▲establishing a one-stop service for power generation business permits, totaling 20 items.

The scale of clean energy power generation investment by 14 companies related to solar, wind, hydrogen, and nuclear power was estimated at approximately 20.2 trillion won over a maximum of 10 years. The difficulties in project promotion were ▲burden of business structure transformation costs such as facility investment (39.3%), ▲lack of business feasibility in the energy sector (30.3%), and ▲insufficient technology acquisition (15.2%), in that order. The most urgent support measures desired from the next government were ▲regulatory relaxation in the energy sector and legislative support for investing companies (38.2%), ▲expansion of financial support such as R&D budgets (23.5%), and ▲expansion of tax support such as tax credits (17.6%).

The FKI first proposed the establishment of public-private joint clean energy cities. Many renewable energy power generation projects are stalled due to conflicts among stakeholders. Therefore, it is suggested to form a consortium of the central government, local governments, and private companies to resolve these issues. Benchmarking projects like Japan’s Kitakyushu Hydrogen Town, the FKI proposes promoting clean energy cities specialized by region in solar, wind, hydrogen, and nuclear power (S-city, W-city, H-city, A-city). The FKI also explained that this project would contribute to the balanced national development that the new government aims for.

There was also an opinion that the new government should express its commitment to revitalizing the clean energy industry, including the transition to a hydrogen economy, to instill confidence in companies planning to invest in the sector. An FKI official stated, "Currently, the revision of the Hydrogen Act (Act on the Promotion of Hydrogen Economy and Hydrogen Safety Management) and the concretization of related policies are delayed, raising ongoing concerns about future industrial uncertainties, spreading anxiety among partner companies," and added, "To realize the clean energy 'Top 3' technology powerhouse, infrastructure such as the establishment of a basic law must be promptly established."

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