One-third of offshore wind power is foreign-owned... Our subsidy 'trillion won'

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Many countries are focusing their efforts these days on offshore wind power generation projects that generate electricity from the wind blowing from the sea.

Korea is also actively taking steps by giving subsidies, and foreign companies currently account for 1/3 of the total business rights in Korea.

However, foreign companies are taking subsidies worth trillions of won per year without contributing to the development of Korea's industry like technology transfer.

This content was covered by reporter Lee Hyun-young.

<Reporter> The

coast of Yokjido, Tongyeong, Gyeongsangnam-do.

Offshore wind power generation is planned for 20 years from 2026.

This is where a company based in Singapore said that it would build an offshore wind power plant, which took about an hour from Yokjido by boat.

It is estimated that the new and renewable energy subsidy to be provided to this company alone will exceed KRW 100 billion a year.

This is because, according to the operating guidelines for the mandatory supply of new and renewable energy, REC, that is, a kind of subsidy, can be paid according to the amount of electricity produced.

The company's projected 20-year electricity sales revenue is 3.3 trillion won.

In addition, the amount received from government subsidies alone is estimated to reach 2.2 trillion won, or 70% of the electricity sales revenue.

Sometimes the belly button is bigger than the belly button.

In Yeosu, where Dutch, Australian and French companies jumped in, and Ulsan, where British and Danish companies won business rights, it is estimated that subsidy revenue will be two to four times higher than electricity sales revenue over the next five years.

Among Korean offshore wind power generation projects, 20 foreign companies out of 64 projects.

In terms of total project cost, 52 trillion won out of 94 trillion won, accounting for 55% of the total project cost.

Since the subsidy standards are applied without discrimination at home and abroad, at least 2.6 trillion won in subsidies is expected to be paid to foreign companies every year if we consider only seven foreign companies that have submitted expected subsidy revenues to the National Assembly.

The source of this subsidy is the Electric Power Industry Infrastructure Fund, which is prepared by deducting 3.7% of the electricity bill.

[Han Moo-kyung / Member of National Assembly Industry Resources: A lot of foreign companies are entering the large-scale offshore wind power project.

As a result, it seems that the outflow of national wealth will accelerate.

I think it is necessary to improve the excessive subsidy regulations.]

(Video coverage: Hwang In-seok, Video editing: Won Yang)

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<Anchor>

Reporter Lee Hyun-young, who covered this content, is here.

[Reporter Lee Hyun-young: Foreign countries are also giving subsidies to new and renewable energy generation projects.

However, the ratio of subsidy income in Korea is rather high.

That is why foreign companies with wind power generation technology are inevitably attracted to the Korean market.

In addition, in the case of offshore wind power in particular, subsidies are provided for offshore wind power, solar power, and onshore wind power.

This is different depending on the type.

The weight is 2.5 to 3.7 times, which is much higher than other types of renewable energy.]

[Reporter Lee Hyun-young: Legally impossible.

In the case of nuclear power plants, there are restrictions by law so that only domestic companies can participate in construction led by the government.

However, in the case of wind power generation, there is no legal restriction on the business entity.]

[Reporter Lee Hyun-young: There is no obligation to transfer technology.

In addition, 12 of the 20 foreign companies that have won the wind power business right now have 100% foreign investment.

That is why it is actually not easy for us to receive technology or know-how in the business process.]

[Reporter Lee Hyun-young: European countries are also paying subsidies.

The method is a little different.

It is the same as not discriminating against subsidies to domestic and foreign companies, but in the case of Denmark and the Netherlands, for example, if there is an operating deficit, it is replacing the subsidy in Korea by compensating for it.

In addition, a competitive bidding system has been introduced, for example in Germany and the Netherlands, where companies that have recently refused to receive subsidies have obtained business rights through competitive bidding.

Although we introduced the competitive bidding system from this year, some point out that it is necessary to institutionalize the technology transfer obligation or to revise the system through these regulations.]

(Video Edit: Yang Won)