Kim Kang-hak, chairman of Unison, requested that the government expand opportunities for domestic wind turbine demonstration in the Southwest Offshore Wind project to foster the domestic wind turbine industry. In response, President Lee Jae-myung stated that institutional safeguards are needed to allow civil servants to make policy decisions without fear of audits or punishment when nurturing domestic technology.
The government held the "Korea Green Transformation (K-GX) Strategy National Report Meeting" on Oct. 7 at the Korea Chamber of Commerce and Industry International Conference Hall in Jung-gu, Seoul.
Building a track record for domestic turbines
Chairman Kim emphasized the need to secure a track record for domestic wind turbines. He said, "If orders for domestic turbines continue steadily, production will increase, manufacturing costs will fall, and parts and maintenance can be handled domestically, reducing maintenance costs. Ultimately, we can lower the cost of electricity generation, reduce dependence on foreign imports, and keep technology and jobs in Korea."
He continued, "No matter how good a technology is developed through national research and development, without a commercial operation track record, neither the private sector nor financial institutions will easily choose it. We ask that opportunities be opened for 10-megawatt domestic turbines developed by Unison and Doosan Enerbility through national R&D to be applied together in the 400-megawatt Southwest Offshore Wind pilot project led by power utilities."
He particularly appealed for demonstration opportunities, noting that mid-sized and small companies find it difficult to participate in bidding due to excessive guarantee requirements. His remarks reflected concern that Doosan Enerbility might bid alone in the pilot project.
Removing barriers for policy decisions
President Lee addressed the audit and punishment risks that could arise from policy support for domestic products. If the government favors domestic products when foreign products are cheaper, breach of duty issues could emerge.
The president said, "To support the technological growth and development of domestic companies, the government needs to create demonstration cases by using domestic products. Using and developing domestic products for the advancement of Korean technology and industry is a policy decision."
He added, "Civil servants may hesitate to attempt this out of concern that audit processes will later raise issues of breach of duty or state losses. We must create a system where civil servants can make policy decisions without fear of punishment, audits, or disciplinary action."
He stressed, "Simply promising to review is not enough to move field-level civil servants. We must remove the risk factors that could arise in policy implementation."
Kim Sung-hwan, Minister of Climate, Energy and Environment (MCEE), said, "We will take your concerns into account. Right now Doosan and Unison are struggling to catch up with 8-megawatt and 10-megawatt turbines. We must move beyond this stage for it to become a core industry." He indicated the MCEE would support the domestic wind turbine industry in light of the circumstances.
Original Korean article: Energy Economy
English brief by Korea Wind Intelligence, koreawindintel.com
