South Korea Forecasts 52% Gain in Alternative Energy Spending

outh Korea, Asia’s fourth-largest crude importer, forecast that investments in alternative energy will increase by 52 percent in 2010 because of expansion in solar and wind power.

Spending by the private sector and state-run companies may rise to 5.5 trillion won ($4.8 billion) from 3.6 trillion won in 2009, the Ministry of Knowledge Economy said in an e-mailed statement today.

Asia’s fourth-largest polluter is joining the U.S. and Japan in increasing the use of alternative energy as the nation seeks to cut greenhouse gas emissions. U.S. President Barack Obama has pledged to spend $150 billion over 10 years to combat climate change and create “green” jobs. Japan has said it will more than triple power from renewable sources by 2020 to 10 percent of total supplies.

Private companies may raise spending in renewable energy including solar, wind and fuel cell by 58 percent to 3.9 trillion won in 2010, according to the ministry. The government and state-run companies will spend 1.6 trillion won.

These companies may invest 3 trillion won in solar in 2010, up from 1.9 trillion won last year. Spending on wind power may climb 24 percent to 613 billion won, the ministry said.

Source : Bloomberg, 3/02/10