South Korea floating photovoltaics market is projected to witness a CAGR of 10.60% during the forecast period 2024-2031, growing from USD 107.86 million in 2023 to USD 241.49 million in 2031. The market has experienced decent growth in the past and is expected to maintain a strong pace due to commitment toward renewable energy, energy security, and sustainability, fuelling the expansion of its solar energy capacity and market development.
There are several advantages associated with floating photovoltaic systems, including efficient utilization of limited land resources, mitigation of water evaporation, and efficiency improvements in solar panels. Compared to traditional ground-mounted solar installations, floating photovoltaic systems would have a lesser environmental impact. The floating photovoltaics system maintains the local ecosystems and biodiversity as the system does not require any extensive land clearing.
Additionally, floating photovoltaics technology maintains energy security by diversifying the energy mix in renewable energy. Floating photovoltaics systems are effective, and improved panel efficiency, water conservation, and renewable energy production foster the demand for them in South Korea. Floating photovoltaics is becoming a top-choice alternative technology for developers to increase renewable energy capacity in the country.
For instance, in July 2024, Hanwha Solutions Corporation company have decided to build a floating solar power project of 1,200 MW in North Jeolla. The project construction is expected to commence in 2025 and commercial operation by 2026.
Adoption of Energy Diversification Technologies
Energy diversification is a mix of renewable and non-renewable energy sources such as fossil fuel, solar, wind, hydro, biomass, and geothermal. Technologies for energy diversification are utilized to reduce dependence on any single source of energy. A floating photovoltaics system is a kind of energy diversification technology that offers a viable and scalable alternative solution to fossil fuel-based power generation. Floating photovoltaic systems add a unique advantage to the energy mix by utilizing water bodies for solar energy generation. The floating photovoltaics technology provides a balanced and reliable energy supply, which boosts the adoption of floating photovoltaics in energy diversification.
In the current scenario, energy demand is on the rise. Floating photovoltaics technology will reduce carbon footprint, reduce dependency on fossil fuels, and enhance energy security in forecast years. South Korea is taking steps to reduce dependence on fossil fuels for energy generation and to adopt floating photovoltaics technology to expand its renewable energy portfolio.
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Floating photovoltaic technology contributes to resilience by providing a reliable and renewable source of power that may operate independently or in conjunction with other renewable technologies. The integration of floating photovoltaics into the energy mix of the country would enhance its energy independence and reduce exposure to energy market fluctuations.
For instance, in March 2022, Hanwha Solutions Corporation developed floating solar panels on the surface of the Hapcheon Dam in South Korea. The plant will generate 41 megawatts of power, which will be used in residential applications.
Support for Local Ecosystems and Biodiversity to Lead to Market Growth
Floating photovoltaics technology involves the installation of solar panels on water bodies, such as reservoirs, lakes, and ponds, that offer several ecological benefits and support local ecosystems. By covering some portion of water bodies, floating photovoltaic systems can regulate water temperatures and maintain stable aquatic habitats, which is crucial for the survival of fish, plants, and other aquatic organisms, to prevent the conditions that often lead to algal blooms.
In addition, deploying floating photovoltaics technology on the reservoirs that are already in use for hydropower is beneficial. Even in some cases, floating photovoltaic installations are designed to promote ecological balance by incorporating features that support biodiversity, such as fish habitats or bird nesting areas, contributing to a more integrated approach to renewable energy development and conservation. Floating photovoltaic systems assist in protecting local ecosystems and biodiversity by mitigating land use and avoiding deforestation, which drives the demand for floating photovoltaics.
Government Support and Renewable Energy Targets Leading to Market Growth
The South Korean government is actively encouraging the adoption of renewable energy systems which creates opportunities in the floating photovoltaics market. Additionally, the government and higher authorities are planning to implement several programs and legislative measures to foster the growth of solar energy in the country. The policies will include low-interest loans, tax breaks, and reductions, with capital subsidies for developers. South Korean government has commenced various financial incentives and subsidies for the deployment of floating photovoltaics systems on flood reservoirs and man-made water bodies.
Furthermore, the government is introducing new renewable energy production and net zero emission targets. Thus, by establishing renewable energy targets, governments and organizations create a favorable environment for the growth of the floating photovoltaics market in the forecast years.
For instance, in April 2024, Hanwha Solutions Corp invested in Saemangeum Floating Solar Power Project, located in North Jaella. Construction of the project is expected to begin in 2024, with the facility open for commercial operation in 2025.
Stationary Floating Solar Panels to Dominate Market Share
Stationary floating solar panels have a higher adoption rate in South Korea. Stationary floating solar panel products are easy to install and monitor over their lifetime. The stationary floating photovoltaic products are cost-effective as the system does not need regular in-depth inspection. Stationary floating solar panels have been facilitated with monetary policy support, making the product an economically feasible option for developers and investors. Moreover, governments and regulatory bodies continuously encourage the adoption of renewable energy technologies, fostering the demand for stationary floating solar panels in the market. Stationary floating solar panels offer several benefits, which sustain their dominance in the floating photovoltaics market.
South Gyeongsang Region Dominates the Market Share in South Korea
The floating photovoltaics market in South Korea is expected to be dominated by South Gyeongsang in the forecasted years. The region includes several water bodies consisting of major reservoirs, lakes, and seas, possibly ideal for installing floating solar panels. South Gyeongsang has vast water resources committed to generating hydroelectric power, which creates the opportunity for the floating photovoltaics (FPV) market. In fact, South Gyeongsang focuses on renewable energy goals and state policy to reduce state greenhouse gas emissions and have cleaner energy, which boosts the floating photovoltaics markets.
For instance, in 2021, Scotra Co., Ltd. collaborated with Hanwha Q-Cells which is a solar panel manufacturer to set up the largest FPV project in South Korea, situated at the Hapcheon dam, in the South Gyeongsang province.
Future Market Scenario (2024 – 2031F)
1. Ongoing innovations and advancement in floating photovoltaics technology is anticipated to improve the build quality and design of these systems.
2. South Korea is actively looking to enter in the energy diversification, which is expected to push the growth of renewable energy in the country.
3. Solar tracking and hydraulic pump features will make the floating photovoltaics system more energy efficient.
4. Supportive government policies and financial incentives for renewable energy projects, including floating photovoltaics will continue to play a significant role in driving the floating photovoltaics market growth in South Korea.
Report Scope
“South Korea Floating Photovoltaics Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of South Korea floating photovoltaics market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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