The Renewable Energy Sector in South Korea between Policy Support and Market Constraints

In this article the authors present South Korea's renewable energy industry over the period 2020–2024, focusing on the main sources – solar, wind, hydro, bioenergy and nuclear – and the associated supporting policies. As a highly industrialized and energy-import-dependent economy, South Korea faces the challenge of expanding renewable energy deployment while maintaining system reliability and economic competitiveness. The existing literature emphasizes the central role of policy instruments such as the Renewable Portfolio Standard, Renewable Energy Certificates, feed-in mechanisms and corporate procurement schemes, while also identifying persistent constraints related to grid congestion, regulatory uncertainty, social acceptance and investment risk. To address these issues, the study adopts a mixed methodological approach combining descriptive quantitative analysis of installed capacities and electricity generation for solar, wind, hydropower, bioenergy and nuclear energy with a qualitative assessment of the legislative and institutional framework. A SWOT analysis is further employed to evaluate the strategic positioning of the renewable energy sector. The research focuses on the effectiveness of support mechanisms, the performance dynamics of renewable technologies and the structural barriers affecting sectoral expansion. The findings indicate that solar photovoltaics have been the primary driver of renewable growth, although declining capacity factors after 2022 signal increasing grid integration challenges. Wind energy has shown limited capacity expansion but gradual efficiency improvements, while hydropower and bioenergy provide stabilizing contributions to the energy mix. Nuclear energy continues to function as a core low-carbon baseload source. The paper contributes to the literature by offering an integrated and upto- date assessment of South Korea’s renewable energy transition, highlighting policy implications for enhancing system integration, regulatory stability and long-term investment attractiveness.