Determining the scale of R&D investment for renewable energy in Korea using a comparative analogy approach

Abstract

Abstract The rising price of fossil energy due to increasing global energy consumption has stimulated investment in renewable energy. Despite Korea׳s high dependence on foreign energy sources, it is well behind other developed countries with regard to renewable energy production. This study attempts to develop a reasonable R&D investment plan based on the forecasted diffusion of renewable energy in the Korean market by analyzing the experiences of other developed countries. The German market is selected as the reference case on the basis of its similarity to the Korean market. The realized data indicate that the growth of technology is proportional to cumulative R&D investment. A final investment schedule is established based on the goal of meeting the target penetration level. The suggested investment plan, which differs substantially from the plan recently announced, indicates the necessity of more active investment in early stage and supportive policies for R&D into renewable energy.