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The South Korean government has allocated 18.3 trillion won (about US$14.2 billion) for an energy efficiency initiative that will run until 2012 and save 34.2 million tonnes of oil equivalent (toe). The goal is an 11.3% improvement in energy efficiency by 2012, compared with the level seen in 2007. Among the steps are a 16.5% increase in new vehicle average fuel economy by 2012. In 2004, South Korea replaced its voluntary, unenforced standard with a mandatory program-the Average Fuel Economy (AFE) system-that started in 2006 for domestic vehicles and will start in 2009 for imports. (Earlier post.) The current standards are 12.4 km/l (29.2 mpg US) for vehicles with engine displacements of 1.5 liters or less and 9.6 km/l (22.6 mpg US) for vehicles with engine displacements of more than 1.5 liters. Credits can be earned to offset shortfalls.

"The world's largest tidal power station will be constructed off the coast of Incheon. GS Engineering and Construction signed a memorandum of understanding with state-run Korea Hydro and Nuclear Power (KHNP) on Wednesday and will begin construction later next year with a view to completion around 2017. The power station will have a capacity of 1.32 million kw/h, surpassing the 1 million kw/h of a nuclear reactor being constructed in Ulsan and 3.4 times greater than the capacity of the Rance Tidal Power Station in France, currently the world's largest. It will generate 2.41 billion kw per year, the equivalent of 60 percent of Incheon's household electricity consumption."

Despite an unstable regulatory environment-renewable energy tax incentives are stalled in the senate, BLM policy has been inconsistent- the United States will surpass Germany to be the largest market for solar power in the world by 2011, according to a report by JP Morgan, cited in Greentech Media. By 2011, the US will have an installed capacity of 1.6 gigawatts (with 920 MW in California alone), surpassing Germany's expected capacity of 1.35 gigawatts. The third largest market by this time will be South Korea with 957 megawatts of capacity.

In South Korea, wind power would be a likely resource to help the world's tenth largest energy consumer meet government goals to lower fossil fuel dependency through greater investment in renewable energy.

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