The United Kingdom is rapidly shifting its energy sources from fossil fuels to renewable energy and nuclear power. This is a very attractive market for Korean corporations with excellent technology and potential in related fields.
On the 4th of last month (local time), Tim Yeo, former chair of the Energy and Climate Change Select Committee, noted, "The United Kingdom has been making massive investments in the energy sector. This trend will continue in the future."
Yeo served as Vice Minister in the Ministry of Foreign Affairs, the Ministry of the Interior, the Ministry of Health, and the Ministry of Environment from 1988 to 1994. During the Labour Party's reign from 1998 to 2005, he also held the position of Shadow Secretary of State for the Ministry of Health, the Ministry of Education, the Ministry of Industry, the Ministry of Environment, and the Ministry of Agriculture. He later served as chair of the Environmental Audit Select Committee from 2005 to 2010 and chaired the Energy and Climate Change Select Committee from 2010 to 2015. He is currently acting as a promotional ambassador for investment in Korea at the Korea Trade-Investment Promotion Agency (KOTRA).
Graduating from the University of Cambridge with a degree in history, Yeo began his career as an investment analyst in London and also worked as a fund management and corporate finance expert. He entered politics in 1983 and served as a Member of Parliament for South Suffolk from the Conservative Party until 2015.
Even after retiring from politics, he has been active in the management of various corporations in the energy and technology sectors, participating in renewable energy and climate change-related projects. In 2016, he was appointed as a promotional ambassador for investment in Korea, working to strengthen business and investment relations with Korea.
On September 30th last year, the United Kingdom completely halted coal power generation for the first time in 142 years when it turned off the switch at the Ratcliffe-on-Soar coal-fired power station. Considering that the United Kingdom was the first country in the world to start commercial operation of a coal power plant, this is a symbolic event. The United Kingdom was the first among major advanced countries to reduce greenhouse gas emissions by over 50% compared to 1990, and in the second quarter of this year, renewable energy accounted for 51.6% of electricity production in the UK. The following is a Q&A with Yeo.
─What is the outlook for the UK's renewable energy market?
"The United Kingdom, which has legally defined carbon reduction targets, produced about one-third of its total electricity from wind power last year. In the future, more power will be generated from renewable energy sources such as wind and solar, as well as nuclear power. Moreover, since wind and solar power are intermittent energy sources whose generation fluctuates based on environmental conditions, the demand for Energy Storage Systems (ESS) is also increasing."
─What policies is the UK pursuing to attract investment in the energy sector?
"The United Kingdom guarantees stable revenue through a Contracts for Difference system, where the government supports the difference if the wholesale price sold by power producers is lower than a fixed price. Thanks to this system, the UK is regarded as one of the most attractive energy markets in Europe, where the deployment speed of renewable energy generation is rapid."
─The UK shows strengths in offshore wind energy.
"The United Kingdom has a very long coastline and strong winds blowing across all oceans, including the North Sea and the English Channel, making it suitable for offshore wind power generation. Due to these characteristics, the UK government has been actively supporting the offshore wind industry for the past 20 years. Attractive financial conditions have been provided to corporations entering the relevant market for the first time, and substantial financial support has also been offered."
The United Kingdom plans to double its offshore wind power capacity in the coming years. From the perspective of Korean corporations with strengths in offshore wind-related equipment, this is seen as the optimal time to invest in the UK.
─What is the UK's plan for expanding nuclear power generation?
"This year, the United Kingdom set a goal to expand its nuclear power generation capacity from the current level of 6.4 gigawatts to 24 gigawatts by 2050. A significant number of new reactors will be constructed in the UK. The UK government sees nuclear energy as essential for combating climate change and believes that more nuclear power plants are necessary for carbon reduction."
─How do you assess the potential for the Korean nuclear power industry to enter the UK market?
"I believe that there is great potential for Korean nuclear power technology to be utilized in the UK. The UK government is planning to construct two reactors in the Wylfa area located in northwest Wales and is actively engaging in negotiations with Korea. The United Kingdom is deeply impressed by Korea's successful construction of a nuclear power plant in the United Arab Emirates. Recently winning the nuclear power project in the Czech Republic is also seen as a significant achievement for Korea within the EU, which is expected to influence the decisions of the UK government in the future."
"However, for Korea to build nuclear power plants in the UK, obtaining approval for nuclear power technology from government regulatory agencies is necessary. This process will take about 2 to 3 years. Nonetheless, the UK government desires to see various technologies operated in their country, so they will welcome Korea's technology approval request."