Bitgaram Energy Valley Toward a Global Energy Hub in South Korea. Energy Investment Forum November 2016 by Dr. Peter Kim

Transcription

1 Bitgaram Energy Valley Toward a Global Energy Hub in South Korea Energy Investment Forum November 2016 by Dr. Peter Kim

2 Table of contents 1 Introduction 2 What is Bitgaram Energy Valley? 3 How does it work? 4 Why should you join? 2

3 1. Introduction 3

4 Market situation in Korea TRENDS IN KOREA: Power Consumption ECONOMIC GROWTH vs. POWER CONSUMPTION ( ) 100% 93% POWER CONSUMPTION GROWTH RATE ( ) 6% 5% TRENDS IN KOREA: CO₂ Emission 7 th in carbon dioxide emissions 16 th in accumulated GHG emissions 6 th in GHG emissions per capita among OECD members 305% increase in GHG emissions per 1% increase in income 75% 70% 3% x5 1% Primary Energy Supply(thou. toe) Final Energy Consumption(thou. toe) Real GDP per Capita(thou.KRW) CO2 Emissions(mil.ton) % Economic 경제규모 Growth Power 전력소비 Consumption Growth 0% OECD OECD 평균 AVG. KOREA 한국 AVG Korea - a nation using relatively a lot of power For the economic and industrial growth, Korean government s policy goal was to supply cheap electricity in Korea 14 percent reduction in oil use ( ), while power usage was up 5 percent. 0 *Source: Korea energy economics institute, Bank of Korea, Source: 2 nd energy basic plan, MOTIE 2014, Long-term energy demand outlook, Korea Institute of Energy Research

5 Market future in Korea 100 trillion won of new market 500 thousand of job creation 55 million tons GHG reduction By 2030 Energy prosumer market Low-carbon power generation Electric vehicle sector GHG in the industrial sector Establish energy prosumer electric power market where anyone can sell or produce electric power Expansion to 12.8% of total a power generation Renewable energy Ultra super critical(usc) High voltage direct current(hvdc) Offshore Wind power Supply 1 million pure-electric vehicles by 2030 Convert 100% of automobiles on Jeju Island into electric vehicles Construct nationwide charging network Expand Smart Factories (40 thou.) Strengthen GHG reduction process (hydrogen reduced iron method) Energy grid utilizing discarded heat * Source: MOTIE, 2030 policy of new energy industry,

6 Current reality in Korea MARKET SITUATION SUMMARY NEED More Powerful Alternatives Conventional Technology Disruptive Alternatives GAP KOREAN GOVERNMENT S AMBITIOUS GOAL Technical Hurdles The current Reality For achieving Korean government s ambitious goal, the proactive global cooperation for overcoming technical hurdle should be required. The core entity for carrying out new energy regime, KEPCO considers developing the disruptive new technology platform for energy new industry through clustering with global leading corporates at Energy-valley. Therefore, it is not a simple industrial complex but a strategic base for carrying out the ambitious policy roadmap with the significant strategic meaning and opportunities. In addition, the commercialized new technologies from Energy-valley, could be expanded to other Asian countries as leading technologies in Asia market 6

7 KEPCO for the New Energy Industry 1898 MOU for establishing Corporate Establishment Seoul Era New Vision for the next 100 E N E R G Y V A L L E Y years Ever since its foundation as Hansung Electric Power Company in 1898, the Korea Electric Power Corporation (KEPCO) has led in the modernization of the Republic of Korea and created the central axis for national economic development and technological innovations in the electric power industry.. At its opening of a new Naju era, KEPCO announced a new vision for the next 100 years. The new vision aims to create Energy Valley mainly for the new energy industry in the joint innovative city of Gwangju/ Jeonnam where KEPCO s head office has moved to, and thus taking the lead in the new energy industry for the future. In December 2014, KEPCO moved its HQ to a joint innovative city of Gwangju / Jeonnam, which put an end of the era of Seoul and opened a new Naju era. Energy Valley is a project that establishes a global smart energy hub of energy industries in a joint innovative city of Gwangju/ Jeonnam and the surrounding area by attracting enterprises and research institutes in the new energy industry, with collaboration between the Korea Electric Power Corporation (KEPCO) and local governments (including Gwangju Metropolitan City and Jeollanamdo). 149 Participants Clustering Core Participants Based on academic / industry / research collaboration for the new energy industry, KEPCO cooperated with local governments to attract 500 energy related corporations & research institutes by 2020, thereby establishing the foundation for the technological development of the new energy industry as the future growth engine for the industrial ecosystem. The purpose of creating Energy Valley is to create a creative market and explore new business opportunities through convergence with related industries. 133 Corporates & local government 9 Nat l Research Institutes 7 Universities 7

8 KEPCO for the New Energy Industry Carbon Free Islands Commercial model of energy sufficient islands Period: Investment: 60.7B KRW Smary City Bitgaram smart city Period: Investment: 24.6B KRW New Energy Industry Power-ICT AMI, Big data, IoT Period: Investment: 1,251.2B KRW ESS ESS for F/R & Distribution Period: Investment: 475.2B KRW Power Equip Superconductive cable, DC, FACTS, etc. Period: Investment: 1,155.4B KRW Energy Efficiency Smart home, FMES, ESCO Period: Investment: 389B KRW *Other: Power new business fond (2tm KRW), EV Charging system (360b KRW), SG station (57.8b KRW), School solar farm (400b KRW) etc. 8

9 KEPCO for the New Energy Industry Total of 31 development items, approximately US$ 10 billion s investment for 5 years (US$ 4.6 billion in 2016) CATEGORY NEW ENERGY BUSINESS DEVELOPMENT DETAILS ESS, EV charging, and renewable energy (13 items) Annual Expenditure ( ) Total POWER TRANSMISSION TECH. ENHANCEMENT HVDC and super-conductivity (5 items) POWER DISTRIBUTION TECH. IMPROVEMENT DC transmission, IoT utilized equipment management (7 items) R & D Energy prosumer tech. etc. (3 items) Total

10 2. What is Bitgaram Energy Valley? 10

11 Definition What is the Energy Valley? Smart Energy Hub generating future values by establishing integrated industrial ecosystem in electricity, energy new industry and ICT fusion industry, primarily in Bitgaram Innovation City To secure economic development as replacement of semi-conductor and automotive industries To acquire new markets through the early establishment of integrated academic-industry research 11

12 Bitgaram Energy Valley 300Km Five major industrial complexes in EV MOKPO PORT Muan Int l Airport E-Valley 188Km 240Km YEOSU/GWANGYANG PORT ENERGY VALLEY Location: Neighboring area of a joint innovative city of Gwangju / Jeonnam in Korea Transportation: Near by the Muan Int l Airport (1.5 hrs to Shanghai, China) and KTX (2 hrs to Seoul) Near by Mokpo port and Yeosu / Gwangyang port Neighboring cities: Gwangju Metropolitan City with a population of 1.5 million and Naju City of Jeonnam province, etc. Industry related facilities: KEPCO s head office and about 100 energy related domestic and foreign companies Research related facilities: 7 universities educational institutions and research institutes, including GIST (Gwangju Institute of Science and Technology) 12

13 Partnership Industry Laying the groundwork for key players and fostering energy industries Academy & Research Cultivating manpower and leading R&D 기초전력연구원 Local Government & Relevant Organizations Providing cooperation and support systems 13

14 Geographical structure Bitgaram Energy Valley (BEV) Size: 9,214,651 m2 Bitgaram Innovation City (BIC) Size: 427,000 m2 Electric Vehicle Industrial Complex Bitgreen Industrial Complex Innovation Industrial Complex Bitgaram Energy Cluster(BEC) Size: 5,841,000 m2 Nano Industrial Complex Damyang Eco Industrial Complex 3rd Cheomdan Industrial Complex Jingok Industrial Complex 3rd Pyeongdong Industrial Complex Docheon National Industrial Complex Ceramic Industrial Complex Daeyang industrial Complex Docheom Local Industrial Complex Environment Industrial Complex Shindo Industrial Complex 14

15 Energy Valley Mutual Growth Interest relief for Business loan (200 B KRW) Raising Fund for SMEs (50 B KRW) E-Valley enterprise development institute Supporting overseas marketing Human Resources Energy training course Training course for technical engineer Employment related training course Launching energy course in local universities R&D Cooperation & Support Invest 10 B KRW annually Energy Valley R&D center Energy related governmental institutes Open KEPCO s test facility Others Guaranteeing outlet of product- 10% of KEPCO s procurement Subsidy of local governments Collaboration for proving test 15

16 Comprehensive scope Energy New Industry HVDC / ESS / EV / LVDC / SG / MG / Renewables Electricity/ICT Intelligent ICT / ICT Security / Additional services DR/EE BEMS / HEMS / High efficiency equipment Electric Power Facilities Intelligent ICT / ICT Security / Additional services 16

17 Chronological overview ENERGY VALLEY ROADMAP onward First Move of New E-Industry Global Energy Hub Focusing on Global KEPCO Belt 150 Companies 500 Companies Leading the power market and the new energy industry Take active response and strengthen competency for changes in the market Creating Energy Valley Attract 500 companies and generate 30,000 new jobs Setting the trend for the new energy industry Acquire energy solutions for all continents and fields and achieve global energy hub 17

18 3. How does it work? 18

19 Collaborative undertaking (1) The Korea Commission for Corporate Partnership Investments for win-win growth projects Korea Electrical Manufacturers Association Mutual development agreement (25th of August 2015) 19

20 Collaborative undertaking (2) KEPCO s support for their vendors 20

21 Collaborative undertaking (3) oint R&D projects among academy, industry and research Investing approx. US$10 million annually 18 primary research projects selected from 92 submissions 2 RFPs for energy specific projects announced regularly Period: twice a year (Jan. and July) Areas: energy new industry, convergence technology, electric power new technology, etc. 21

22 Initiating various chances (1) EV (Electric Vehicle) Establishing electric vehicle charging Star-Network: 345 chargers at 122 sites in Korea / 73 chargers at 15 sites in the province Establishing test beds (GIST and SNU) to demonstrate V2G (peak reduction in emergency) IoT (Internet of Things) / Big Data Conducting self-diagnosis with smart sensors that monitor electric power facilities (Daegu, Gwangju, etc.) Providing social safety net services for elderly with dementia or living alone with AMI network 22

23 Initiating various chances (1) Electric Vehicle Promote EV Project (780 cars purchasing), US$ 40.0 mil. Strategic Technology Development Related to New Energy Business (EV related R&D), US$ mil. Electric Recharging Vehicle Station Promote EV Recharging station (7,950 sites), US$ mil. Development of a Demand Management Business Model and an Emergency ESS Power Generator for Vehicles, US$ 11.4 mil. & mil. (ESS related system development) 23

24 Initiating various chances (2) MG (Micro-Grid) sectors Technological development and demonstration of micro grid in islands (Gasado Island, etc.) Establishing smart energy campuses SG (Smart-Grid) sectors Demonstration projects of SG-based smart home services Establishing and linking SG stations in energy public companies' buildings (KEPCO, KPX, KDN, etc.) 24

25 Initiating various chances (2) Micro grid Platform Energy Independent Island Development Project (US$ 60.7 mil.) Research of an DC Power Distribution Network (US$ mil.) Advanced Power Distribution Management System by Utilizing IoT Devices (US$ 96.9 mil.) Integrated Smart City Management System and a New Business Model development (US$ 24.6 mil.) Development and Utilization of an ESS-Linked Power Distribution System (US$ mil.) 25

26 Initiating various chances (3) ESS (Energy Storage System) sectors Expanding frequency adjustment ESS projects continuously (184MW in Korea / 24MW in regions) Adopting ESS for island areas' diesel development (Pyeongdo Island and Sonjukdo Island underway) HVDC / LVDC Developing direct current distribution network Hataedo Island in Shinan: 46 households, electric power load: 80kW Localizing through technological development of HVDC and joint research 26

27 Involvement of business players (1) Diesel generation renewable energy (photovoltaic, wind power, ESS) Fossil-fuel cars (5,414 vehicles) electric vehicles and 6,000 units of charging infrastructure 8 Projects finished ($23 million invested) 23 projects on going ($ 50 million is going to be invested) Phase 1 (2016 to 2017) Phase 2 (2018 to 2020) Phase 3 (2021 to 2025) 4 islands 25 islands 21 islands 27

28 Involvement of business players (2) Government and KEPCO s plan to establish charging network Hybrid ESS Fusion station (V2G) New renewable energy Energy efficiency MG convergence energy <Gwangju/Jeonnam Innovation City> KEPCO power system (Grid) 28

29 Involvement of business players (3) Become a clean energy leader Connect tourism sights with nature around the island Demonstration project of 100MW land wind power generation: Shinan area/ US$270 million (private investments) Phase 1 (42MW) / construction began in 2015 and finished Jan 2016 Yeong-am wind plant 40MW, Honam 20MW, Baeksu 40MW, Hwasoon 16MW Demonstration project of 500MW sea wind power generation 300MW (POSCO Energy and SK E&S) / 200MW (KEPCO and Korea Wind Energy Industry Association) 29

30 4. Why should you join?

31 About Jeollanamdo Impressive coastline of around 6100km Surrounded by over 2000 islands, 1 quarter are inhabited 5 cities, 17 counties, capitol city Muan The province has the warmest weather on the peninsula Two big harbors: Gwangyang harbor and Mokpo harbor FEZ in Gwangyang (POSCO) and FTZ in Daebul 3 Airports incl. Muan International Airport Mokpo to Seoul in 2.5h by KTX train Key industries: Shipbuilding, machinery, Green energy Renewable energy, Automobiles, Raw materials New materials 31

32 Benefits Government's policies to foster energy new industry US$100 billion in 2030 Nurturing strategies of KEPCO, Gwangju and Jeonnam KEPCO investing US$2 billion in energy new industry Platform to enter Asian market Brand Made in Korea instead of Made in China Easy access to Chinese and Asian markets with FTA Support to acquire track records Exchange of expertise R&BD Network Close collaboration with core suppliers 32

33 Incentives Investment of over US$30 million 100% reduction of corporate taxes and income taxes for the first 5 years and 50% tax reduction over the next 2 years 100% reduction of acquisition taxes and property taxes for 15 years Tariff exemptions Exported capital goods for 5 years Parts and components industry (electrical equipment) Cash grant amount: 5 to 10% of investment amount Purpose: construction expenses and machine equipment expenses Amount of cash support may increase dependent on the company's level of technology and employment size 33

34 Pioneers (1) 46 IT companies among them NURI TELECOM with 17.6m USD investment into SG and ESS 40 energy companies among them BOSUNG POWER with 8.8m USD investment going into eco-friendly electricity power materials, IoT, smart sensor development and manufacturing 8 institutes and industry centres like SMART PARK and DOSI & SARAM Foreign investment: 3 companies including GE (USA), ABB (Sweden) and ALPS (Japan) 34

35 Pioneers (2) Branch of KEPCO Electric Power Research Institute Branch of KEPCO Material Testing Lab Branch of Korea Electrical Engineering & Science Research Institute KEPCO KPS R&D Complex Branch of Korea Electrical Manufacturers Association Branch of Korea Testing Certification 37

36 Thank you for your interest! Please keep in touch... Jeollanamdo Europe Office [ info@j-europe.eu / +49-(0) ] Jeollanamdo Provincial Government [ jnman@korea.kr / ]