Renewable Energy Adoption in Agriculture Amid High Oil Prices
High oil prices are driving farms to consider renewable energy systems, potentially cutting heating costs by up to 80%. The South Korean government is reviewing support programs to increase adoption rates among farms facing high initial investments.
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With the ongoing rise in oil prices, South Korean farms are increasingly interested in renewable energy systems, such as geothermal and air-source heat pumps, which can reduce heating costs significantly. Air-source heat pumps, which are cheaper and easier to install than geothermal systems, cost about 1 billion won for a hectare.
However, the high initial investment remains a barrier for many smaller farms, prompting government examination of support programs to enhance beneficiary eligibility. Currently, the budget for these programs is approximately 16.837 billion won, with a competition ratio of about 4 to 1, limiting access for most applicants. Expanding support could facilitate wider adoption of renewable energy in agriculture, but the financial burden on farms remains critical.
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