Green energy can stimulate cooperation between Korea and Russia

The possibility of developing solar energy in the regions of Russia. Photo: Materials provided by KOTRA

Korea needs to develop cooperation with Russia, which has the highest renewable energy potential in the world. These conclusions come from the KOTRA (Korea Trade Promotion Agency) report on “Schemes for the Transition to Green Energy and Russia-Korea Cooperation”, which indicates that the use of solar, wind and geothermal energy by 2030 will grow 1.6 times in the world by 2030. Compared to 2019, according to IA PrimaMedia.

KOTRA, in the report “Russia’s Transition to Green Growth and Plans for Russia-Korea Cooperation”, published on July 12, analyzes the conditions and strategy for Russia’s transition to economic growth with environmentally efficient use of natural resources and low carbon emissions, and takes into account methods of cooperation with Russia. According to the document, the international energy market is rapidly shifting from energy supplies based on fossil fuels such as crude oil and coal to clean, low-carbon energy. The demand for renewable energy sources such as solar, wind and geothermal energy is expected to increase 1.6 times by 2030 compared to 2019.

In this regard, Russia has the highest renewable energy development potential in the world, although it lags far behind global renewable energy leaders such as China and the United States in terms of renewable energy generation capacity.

This is due to the fact that the use of traditional energy sources is very large, and the incentives to develop new sources of renewable energy are weak. Although the transition to green energy in Russia has been slow due to its structure, which relies heavily on traditional energy sources such as crude oil and coal, in recent years there has been a systematic development of wind and solar energy.

In addition, foreign companies are closely watching changes in the Russian green energy market and expanding their presence in order to be the first to take a niche in the market. Thus, the Italian energy company Enel has been actively investing in the renewable energy sector in Russia since 2007. The company is developing renewable energy projects, has already commissioned the first wind farm in Russia, the Azov wind farm, is implementing two more wind farm projects, and is expanding Its business is charging electric vehicles in Russia.

Based on the market entry experience of the global Danish wind energy company Vestas, a successful market entry strategy should include establishing a production base in a short time frame in collaboration with local companies.

According to KOTRA President Yoo Chung-yeol, the transition to green energy in Russia is still in its infancy, but has a very high growth potential in the future. Therefore, the green energy sector will play an important role in the future economic cooperation between Korea and Russia.

Special Reporter Moon Kyungchun

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