Hydropower - South Korea

The Hydropower Market within the Renewable Energy sector in South Korea has seen negligible growth, influenced by factors such as limited site availability, regulatory challenges, and competition from other renewable sources like solar and wind energy, which are expanding rapidly.

Customer preferences: Consumers in South Korea are gradually becoming more environmentally conscious, driving a subtle shift towards sustainable energy practices, including hydropower. This heightened awareness is fueled by a growing interest in ecological conservation, particularly among younger demographics who prioritize green energy solutions. Additionally, urbanization and lifestyle changes have led to increased demand for cleaner energy sources, as residents seek to mitigate the impacts of pollution. As public sentiment shifts, there is a rising expectation for government initiatives to promote hydropower as a viable alternative amidst a competitive renewable landscape.

Trends in the market: In South Korea, the hydropower market is experiencing an upward trajectory as the government intensifies its commitment to renewable energy sources. This shift is marked by increased investment in hydropower infrastructure, including the modernization of existing facilities and the development of new projects. Concurrently, there's a growing emphasis on energy storage solutions to enhance the reliability of hydropower. Stakeholders, including energy companies and investors, are recognizing the potential of hydropower to contribute to energy independence and reduce carbon emissions, aligning with national sustainability goals. As public support for green initiatives strengthens, industry players may need to adapt strategies to capitalize on this evolving landscape.

Local special circumstances: In South Korea, the hydropower market is shaped by the country's diverse topography, featuring numerous rivers and mountainous regions ideal for hydroelectric projects. Cultural values emphasizing environmental stewardship and energy independence further bolster support for renewable initiatives. Additionally, stringent regulatory frameworks aimed at reducing carbon emissions incentivize investments in green technologies. This unique combination of geographical advantages and a strong public commitment to sustainability distinguishes South Korea's hydropower landscape from other global markets, driving innovation and collaboration among stakeholders.

Underlying macroeconomic factors: The hydropower market in South Korea is significantly influenced by macroeconomic factors such as government policies, investment trends, and global energy prices. The national commitment to reducing greenhouse gas emissions and achieving energy independence drives substantial public and private investment in renewable energy projects, particularly hydropower. Furthermore, favorable fiscal policies, including subsidies and tax incentives for green energy initiatives, stimulate market growth. On a global scale, rising energy prices and the transition toward sustainable energy sources enhance the competitiveness of hydropower, positioning it as a viable alternative amidst fluctuating fossil fuel markets.

Data coverage:

The data encompasses B2B enterprises. Figures are based on the value of electricity production in the energy market.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as annual reports of the market-leading companies and industry associations, third-party studies and reports, national statistical offices, international institutions, and the experience of our analysts.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting electricity generation due to the non-linear growth of this market, especially because of the direct impact of climate change on the market.

Additional notes:

The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.