[Inside Chodong] Solar Power Pushed to the Brink as Administration Changes

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] ‘23’.

This is the number of companies currently participating in ‘RE100’, a commitment to use electricity generated entirely from renewable energy for production activities. This year alone, nine companies including Samsung Electronics, Samsung Display, Samsung SDI, LG Innotek, Naver, Incheon International Airport Corporation, Hyundai Motor, Hyundai Wia, and Hyundai Mobis have joined, and the number is expected to increase year by year.

Companies are moving quickly to respond to climate change. It is a reality that major investors as well as client companies are demanding a high level of climate response from our companies. The increasing number of companies joining RE100 is also due to this reason.

However, there are concerns that domestic supply of renewable energy needed by companies may not be sufficient. Last year, Samsung Electronics’ electricity consumption reached 25.8 terawatt-hours (TWh), exceeding the domestic solar and wind power generation of 25 TWh during the same period.

The total amount of renewable energy electricity produced domestically is about 43 TWh, which leads to the conclusion that it cannot cover the electricity consumption of the remaining 22 companies. If the supply of renewable energy is not significantly increased from the current level, companies willing to participate in RE100 will find themselves unable to do so.

In particular, as the government and ruling party approach renewable energy from a political perspective, the related industry atmosphere has been greatly depressed. On the 13th of last month, the Office for Government Policy Coordination announced the ‘Joint Inspection Results on the Operation of the Power Industry Infrastructure Fund’, revealing that among 226 basic local governments nationwide, a sample survey of 12 locations found a total of 2,267 cases of illegal or improper execution amounting to 261.6 billion won. However, this was the result of a full survey. It was later revealed that the inspection results were inflated 4.6 times by presenting them as if they were from a sample survey.

The Joint Investigation Team on National Financial Crimes has launched an investigation into solar power project corruption allegations during the Moon Jae-in administration, and financial authorities are also intensively inspecting bad loans and funds related to solar power in the banking sector during the same period. It appears to be an all-out pressure tactic targeting the previous administration by picking on solar power.

The solar power industry has argued that the structure of solar power projects guarantees stable profits over several years depending on initial facility investment, and that more aggressive investment is needed amid the recent energy crisis.

They also stated in a press release, "What the government should do is to supplement, improve, and correct problems arising in the policy implementation process, and immediately stop acts that incite hatred and distortion against solar power by using shortcomings in policy implementation as a political tool for specific purposes," but it is insufficient to change the trend.

While it is necessary to correct the failures of past governments, the energy industry should be approached from a grand perspective. The expansion of renewable energy is a global trend. The European Union (EU) Parliament raised the renewable energy share target from 40% to 45% by 2030 last month. China, which emits one-third of the world’s greenhouse gases, plans to achieve carbon neutrality by 2060 with an investment of 17 trillion dollars.

Prime Minister Han Duck-soo, who is on a tour of South America, visited Hanwha Solutions’ solar module factory the day before yesterday and stated, "We plan to prepare various support policies so that the renewable energy industry can grow," which is at least welcome. There should be no damage to energy policy, which can be called a national long-term plan, due to political intentions.

[Image source=Yonhap News]

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