[Energy Odyssey] 12: K-Solar Takes On Chinese Low-Cost Push With "Super-Gap Technology"

III. The Dream of Electrification
At a floating solar power plant in Andong, Gyeongsangbuk-do
South Korea's first hybrid generation facility using domestic solar technology
Government: "Transition to an electro-state by expanding renewable energy"
Solar power accounts for just 7.7% of generation... A long way to go
Reducing reliance on Chinese solar products remains a challenge
South Korea leads the world in "dream technology" tandem cells

Editor's NoteThe importance of energy has never been greater, amid supply chain disruptions caused by the war in the Middle East and the government's mega-projects. South Korea faces the difficult task of achieving energy security, carbon neutrality and economic growth at the same time, while relying on overseas sources for most of its primary energy. We are publishing a series of feature articles in which reporters covering energy issues on the ground examine a range of current challenges and seek solutions.

On October 14, tens of thousands of solar panels were floating on 520,000 square meters of water at the Imha Dam floating solar power plant in Imha-myeon, Andong, Gyeongsangbuk-do - an area about the size of 74 soccer fields. A closer look at the black solar panels floating on the water revealed that they were shaped like the Taegeukgi, South Korea's national flag, and the mugunghwa, the national flower.

The drawback of solar power facilities, which do not generate electricity after sunset, is offset through hybrid generation. At night, the facility is connected to the existing hydropower plant at Imha Dam, helping stabilize the power grid. Because it uses the transmission network already in place for hydropower, it also reduces the need to build new transmission lines.

A view of the Imha Dam floating solar power plant in Imha-myeon, Andong, North Gyeongsang Province, on the afternoon of the 14th. Photo by Lee Hyunju

The Imha Dam floating solar power plant generates 61,670 megawatt-hours (MWh) of electricity annually, enough to power 25% of all households in Andong for a year. The facility, selected as South Korea's first renewable energy complex, has an installed capacity of 47 MW.

"The rear sides of the solar modules can also generate electricity by reflecting light off the water," said Park Jongam, head of the Imha Floating Solar Power Plant's operations and maintenance team. "On average, the facility generates power for about four hours or more, slightly longer than the 3.8 hours originally anticipated."

Equipment made by South Korean companies is used at the Imha Dam floating solar complex. This was a key consideration because environmental and structural stability are especially important for equipment used on water.

The panels (modules) are designed for use on water and contain 0% lead. The encapsulant that protects the cells is also made from materials that do not produce acetic acid. To avoid affecting the ecosystem, space has been left between the modules to allow light to pass through. The modules are tilted at an angle of about 20 degrees, and are cleaned automatically when rainfall exceeds 5 mm. The inverters are made by OCI.

The floats keep the solar panels from drifting away while allowing them to remain on the water. Made of polyethylene (PE), they have six internal compartments and are designed to withstand strong typhoons.

Scotra, the South Korean company that manufactured the floats for the Imha Dam complex, uses structural steel tubing made by POSCO and polyethylene (PE) raw materials supplied by Lotte Chemical to produce high-quality products. "In China, lightweight floats are used at sites in areas with little wind. By contrast, we have been making products that can withstand heavy snow and typhoons," a Scotra official said. "We export our products to Taiwan, the Philippines, Vietnam and Japan."

Local residents have also responded positively. Concerns had been raised about electromagnetic waves, glare and heavy-metal contamination, but the facility has not affected their primary livelihoods, such as farming and fishing. In addition, a village corporation took part as an investor, and residents will share about 22 billion won in power generation revenue over the next 20 years through investment returns and support programs.

Jang Wonho, 58, who lives in Imha Village, said, "It's fascinating to see a solar power facility built on the waters of Imha Dam, which cannot be used for drinking water. Residents are happy because it also brings in additional income. I also have an orchard near the floating solar facility, and contrary to my concerns, there has been no change in production."

Floating solar power facility on Daeho Lake in Seosan, South Chungcheong Province. Korea Rural Community Corporation

Solar power at the heart of the "transition to an electro-state"... Yet it accounts for just 7.7% of generation

Solar power is a key source of electricity in the ambitious "energy transition" being pursued by the Lee Jae-myung administration. As the war in the Middle East this year has heightened concerns about energy security, the government is accelerating the shift to renewable energy. A central task of the energy transition pursued by the Lee administration is to expand renewable energy and "transition to an electro-state."

In the "Energy Transition Action Plan" he presented to President Lee Jae-myung in April 2026, Minister of Climate, Energy and Environment Kim Seonghwan said, "The war in the Middle East has highlighted the need for an energy transition away from a focus on fossil fuel supply and toward renewable energy." He added, "We need to respond to the explosive growth in electricity demand driven by artificial intelligence and advanced industries, foster related industries to make them competitive, and rapidly transition to an electro-state."

The government defines an "electro-state" as "a country that generates electricity through renewable energy and secures national competitiveness by shifting its industrial structure to an electricity-based one." It has also laid out a specific direction for the transition: move the power supply system toward renewable energy and pursue an energy transition that electrifies everything, including industry, transportation and buildings.

Expanding renewable energy is central to the transition to an electro-state. The government has announced a goal of increasing renewable energy's share of power generation to 20% by 2030. To achieve this, it plans to expand renewable energy capacity from 37 GW in 2025 to 100 GW by 2030. Solar power accounts for 87 GW of the target, far more than onshore wind at 6 GW and offshore wind at 3 GW.

The success of the transition to an electro-state depends on how quickly solar power can be expanded.

But the country still has a long way to go. According to Korea Electric Power Corporation's monthly statistical report, renewable energy generation from January through August this year totaled 43,424 gigawatt-hours (GWh), accounting for just 10.8% of total generation of 400,494 GWh. Solar power, the largest source of renewable energy generation, produced 30,929 GWh, or 7.7% of the total.

This stands in contrast to the outlook in "New Energy Outlook 2026," a report by energy market research firm BloombergNEF, which predicts that solar power will overtake coal and gas to become the world's largest single source of electricity generation in 2032.

As of the end of 2025, South Korea had 31 GW of installed solar capacity. To reach 87 GW by 2030, it will need to add 56 GW of capacity over the next five years, starting this year. That would require installing about 12 GW of solar capacity annually. Reaching the target would mean building solar complexes with a combined area equivalent to about 16,000 soccer fields every year.

The government plans to meet its target through policies including solar income villages, rooftop solar panels at industrial complexes, agrivoltaics, floating solar, projects in border areas and RE100 initiatives at public institutions.

Domestic solar power loses ground to Chinese products... "Direct subsidies needed for domestic products"

One issue that consistently comes up in discussions about policies to expand renewable energy, particularly solar power, is heavy reliance on Chinese products. Critics say that the more solar power expands, the more Chinese solar companies benefit. To secure public support for solar expansion, South Korea needs to reduce its reliance on Chinese products.

According to the Ministry of Trade, Industry and Energy, Chinese solar cells' share of the South Korean market rose from 38% in 2019 to 63% in 2021 and then to 95% in 2024. By contrast, the market share of South Korean solar cells fell from 50% in 2019 to 35% in 2021 and 25% in 2023, before plunging to 4% in 2024.

Agrivoltaics once drew attention because installing solar equipment above farmland while continuing to farm could help increase farmers' income. But the widespread installation of Chinese solar equipment because of its lower cost turned into a political and social issue instead.

There are calls for stronger institutional measures that can help improve technology and price competitiveness to counter the onslaught of low-cost Chinese products.

The United States has moved to effectively block low-cost Chinese products from entering its market by imposing trade and tariff measures on polysilicon, a key material for solar panels, and related products. In June 2026, U.S. President Donald Trump signed a proclamation imposing a 15% tariff on foreign-derived polysilicon products and introducing a minimum import price for polysilicon, ingots and wafers. The measures are based on Section 232 of the Trade Expansion Act, and their key provision is to set price floors for major products in the solar supply chain.

Workers install solar modules in the yard of a building in Yangji-eup selected for this year's convergence support project. The Asia Business Daily database.

The government has also introduced a "solar module carbon emissions verification system" to protect domestic industry. The system measures and verifies the total carbon dioxide emissions generated throughout the production of solar modules, and provides incentives for low-carbon products with lower emissions.

The government expects the system to help South Korea's solar industry compete against low-cost imports, since many solar modules produced overseas, including in China, are made using electricity from thermal power plants, which generates relatively high carbon emissions.

However, industry officials say the system may not be effective, as more products are being labeled "domestic" even though most of their equipment is made in China and only assembled in South Korea.

The government plans to introduce a production tax credit for solar power generation to support domestic solar technology. The tax benefit will apply to eligible products manufactured and sold in South Korea for 10 years, from 2027 to 2036.

However, critics say it may be less effective for companies that are operating at a loss in their early years or have little tax to pay, as it does not provide direct refunds like the U.S. Advanced Manufacturing Production Tax Credit (AMPC). The solar industry is urging the government to introduce direct refunds and other measures.

"Technology for producing various types of equipment, including solar modules, inverters and pipes, has already been fully developed domestically," said Nam Jaewoo, a director of the Korea Agrivoltaics Association. "Ultimately, domestic products lose out to Chinese products because of the price. The government should subsidize solar equipment manufacturers so they can become more competitive on price."

Tandem cells, the "game changer for solar power," put South Korea in the lead

South Korea is a global leader in solar technology development. According to the 2021 report "International Comparison of Eco-Friendly Industry Technology Levels for Achieving Carbon Neutrality," published by the National Assembly Budget Office, solar power technology has advanced steadily since 2015, narrowing the gap with the country that has the world's leading technology. If the world's leading country is rated at 100, South Korea scores 90.0.

South Korea is also considered to be at the forefront of commercializing tandem cells, a field in which solar companies around the world are competing to advance. Hanwha Solutions' Qcells division has obtained International Electrotechnical Commission (IEC) certification for a ground-mounted perovskite-based tandem module. It is the first perovskite-based tandem module in the world to receive this certification.

In December 2024, Hanwha Qcells recorded an efficiency of 28.6% - then a world record - for an M10-size tandem cell suitable for scaling up to commercial mass production. Hanwha Qcells has already built and is operating pilot lines for mass production of tandem cells at its Jincheon plant in North Chungcheong Province and in Germany. The company has demonstrated the technology's practical potential by receiving certification for an independently verified efficiency of more than 28% in large-area cells suitable for commercialization.

Artist's rendering of Atlas Energy Park, which Hanwha Solutions' Qcells division is building in Arizona. Hanwha Solutions

Tandem cell technology is also called a game changer that could transform a solar market dominated by China. Conventional solar cells use a single silicon wafer to capture the full spectrum of sunlight. Tandem cells, by contrast, have a stacked structure, with two solar cells made of different materials layered on top of one another.

Conventional solar cells convert only the energy they can absorb into electricity. Tandem cells, however, capture the heat that would otherwise escape from both the perovskite layer on top and the silicon cell beneath it, converting that energy into power. Compared with conventional solar cells, tandem cells can substantially increase power generation per unit of area.

Tandem cells offer high performance, but their longstanding weakness has been the stability of the perovskite material in the upper layer, which is vulnerable to moisture and degrades easily in high temperatures.

The government has set a goal of advancing tandem cell technology and taking the lead in the next-generation solar market. In its "Korean-Style Energy Transition (K-GX)" plan, announced on October 7, the government said it would be the first in the world to commercialize and mass-produce tandem cells by 2028, and increase their power generation efficiency to 35% by 2030. Its vision is to lead the next-generation solar market, including tandem cells and perovskites, by 2035.

This content was produced with the assistance of AI translation services.