Dark Outlook
The domestic solar power market is expected to shrink next year due to the slowdown of its growth and the cancellation of the Renewable Portfolio Standard (RPS) quota taking effect in 2016.
The market both grew and contracted in 2008 due to a lack of new demand. However, the RPS was implemented in 2012 for the market to regain the 2008 level. The annual growth rate amounted to 80 percent in 2013 and is estimated to reach 42 percent this year.
The growth is likely to be halted as the obligatory quota for photovoltaic generation applied to power generation companies disappears in 2016 according to the RPS enforcement ordinance revised last year. The domestic market is so dependent upon the RPS that it accounts for approximately 90 percent of the total market demand. The quota for next year is 320 MW and 0 MW from 2016.
“Many other countries are concentrating on their own domestic photovoltaic markets to ensure greater stability, but we are failing to do so,” said the Korea Photovoltaic Industry Association, adding, “Measures are urgently required for stable domestic demand creation.”
According to the Korea Energy Management Corporation, the size of the domestic photovoltaic market of Japan is estimated at 13 GW as of February this year, whereas that of Korea was just 1.4 GW as of the end of 2013. China is planning to produce 70 GW and 100 GW of photovoltaic power by 2017 and 2020, respectively.