South Korea Renewable Energy Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

South Korea Renewable Energy Market Trends and Insights

Rapid Decline in Utility-Scale Solar LCOE Across South Korea

Utility-scale module prices fell 27% between early 2024 and 2025 as Hanwha Q CELLS and OCI ramped 50-100 MW projects, widened domestic wafer pulls, and benefited from tariff exemptions on imported trackers. Developers installed 1.2 GW of new solar capacity in 1H 2024, reinforcing South Korea's 71.3% solar lead in the renewable energy market. LCOE parity versus LNG is expected by 2026, shifting corporate buyers toward multi-megawatt PPAs. Despite a KRW 300.2 bn loss from oversupply, Hanwha's expanded Q ANTUM line underpins price competitiveness and secures future volume.^{[1]Business Korea, "Hanwha Solutions Reports 300.2 Billion Won Operating Loss," businesskorea.co.kr}

Mandatory REC Quotas Pushing Corporates Toward PPAs

The Renewable Portfolio Standard requires large producers to generate 25% of their energy from renewable sources by 2026, following the implementation of direct PPAs after the Electric Utility Act amendments.^{[2]Mayer Brown energy alert, “South Korea opens door for direct PPAs,” MAYERBROWN.COM} Hyundai’s 610 GWh, twenty-year deal exemplifies first-mover industrial demand and signals mounting pressure on peers to adopt renewable sourcing. While PPA electricity lacks REC eligibility, utilities now design hybrid structures that link certificates with hedged supply, broadening liquidity and stabilizing the South Korean renewable energy market.

Offshore Wind Port Infrastructure Subsidies Near Mokpo & Ulsan

A KWR 1.2 trillion harbor overhaul delivered heavy-lift cranes, deep-water quays, and marshalling yards capable of handling 15-MW nacelles, resulting in a 20% reduction in logistics costs. The government awarded 1.9 GW across December 2024 auctions and holds a 58.8 GW pipeline, driving the wind segment’s 36.6% CAGR and altering the South Korea renewable energy market technology mix.

Grid Modernisation Investments (KEPCO Digital Twin Roll-out)

KEPCO's KWR 29.3 trillion expansion adds 10,173 circuit kilometers and embeds a cloud-based digital twin that simulates congestion and dispatch in real-time. The 4 GW Donghaean #2 HVDC line will transport southeast renewables to Seoul, which accounts for 40% of the nation's demand. These upgrades ensure the South Korean renewable energy market can scale without curtailment spikes.

Land Acquisition Challenges for Ground-Mounted Solar in Gyeonggi & Chungcheong

Setback ordinances of 100-1,000 m eliminate up to 70% of candidate plots and inflate build costs by 25%.^{[3]Solutions for Our Climate press office, “Citizens challenge solar-setback rules,” SOF.OR.KR} Constitutional appeals filed in February 2025 target these rules as scientifically unfounded. Without repeal, capital will shift to rooftop or offshore wind, eroding solar’s current preeminence within the South Korean renewable energy market.

Slow Environmental Impact Assessment Approval Cycle (Above 30 months)

Haewoori offshore wind completed its EIA in July 2024, following a multi-year review, which illustrates a 30-month average that extends the financing risk.^{[4]Energy Global news desk, “Haewoori offshore wind EIA completed,” ENERGYGLOBAL.COM} The March 2025 Wind Power Promotion Act pledges single-window clearance, but the entrenched agency is still delaying project realisation.

Segment Analysis

By Technology: Wind Acceleration Challenges Solar Dominance

Solar energy maintained a 71.3% share of the South Korean renewable energy market in 2024, yet wind’s 36.6% CAGR signals a shift. The South Korean renewable energy market size for offshore wind could exceed 25 GW by 2030 if the entire auction pipeline reaches financing. Removal of local-content quotas cut turbine CapEx by up to 20%, attracting Ørsted and Equinor, while CS Wind localised tower production. Hydropower, bioenergy, and geothermal energy remain niche options, given resource limits and the refocusing of subsidies.

A 15-MW turbine roll-out, floating-foundation pilots off Ulsan, and deeper water leasing rounds reinforce wind’s catching-up trajectory. The South Korea renewable energy market share for solar may narrow as port capacity, HVDC links, and corporate decarbonisation tilt spending toward higher-capacity-factor wind farms.

Note: Segment shares of all individual segments available upon report purchase

By End-User: Utilities Drive Market Transformation

Utilities controlled 59.9% of installed capacity in 2024 and posted a 12.9% CAGR through 2030 as KEPCO subsidiaries spearhead multi-GW tenders. K-RE100 uptake and Hyundai’s record PPA indicate that commercial-industrial buyers are scaling rapidly, yet non-REC eligibility tempers wider adoption. Residential growth lags, capsized by setback ordinances and limited rooftop area, though virtual-power-plant pilots harness new 540 MW/3,240 MWh storage contracts. As reform widens PPA eligibility, the South Korean renewable energy industry can progressively rebalance reliance away from incumbent utilities.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Due to strong coastal winds and deep-water ports, Jeolla provinces dominate the South Korean renewable energy market. The 8.2 GW Sinan complex anchors this lead, bolstered by the KWR 1.2 trillion infrastructure package that equips Mokpo to service turbines exceeding 15 MW. Grid plans allocate 2 GW of dedicated HVDC export capacity from Sinan to the Seoul load center once the Donghaean #2 link comes online in 2027. Robust local content incentives also foster nacelle and blade facilities that feed domestic and export orders.

Jeju Island pioneers integrated renewables, with its 16.2% renewable penetration in 2020 and the goal of achieving carbon neutrality by 2030, creating an experimental sandbox. ABB’s synchronous condenser and Hitachi’s VSC converter keep the island grid balanced despite rising variable output. Battery storage cut curtailment by 1,847 MWh between 2015 and 2019, and a green-hydrogen pilot positions Jeju as a template for mainland replication. Lessons from frequency management and rotating-inertia substitution inform national standards slated for 2026.^{[5]Hitachi Energy case notes, “First VSC converter on Jeju,” HITACHIENERGY.COM}

Industrial East Coast hubs Ulsan and Pohang are evolving into hydrogen valleys. KHNP broke ground on the country’s first nuclear-powered electrolyser in October 2025, while SK E&S advanced a USD 16 billion complex targeting 250,000 t H₂ annually. These clusters leverage proximity to steel mills and petrochemical plants, generating anchor demand for clean molecules and stabilizing renewable energy flows. Conversely, land-tight Gyeonggi and Chungcheong provinces struggle with ground-mounted solar permitting, prompting developers to opt for pricier rooftops or rural areas with longer grid feeds.