South Korea Biomass Power Market Outlook to 2032

The report titled “South Korea Biomass Power Market Outlook to 2032 – By Feedstock Type, By Conversion Technology, By Plant Capacity, By Application, and By Region” provides a comprehensive analysis of the biomass power industry in South Korea. The report covers an overview and genesis of the market, overall market size in terms of value, detailed market segmentation; trends and developments, regulatory and policy landscape, buyer-level demand profiling, key issues and challenges, and competitive landscape including competition scenario, cross-comparison, opportunities and bottlenecks, and company profiling of major players in the South Korea biomass power market. The report concludes with future market projections based on renewable energy transition strategies, Renewable Portfolio Standard (RPS) compliance mechanisms, industrial decarbonization initiatives, energy security considerations, regional resource availability, cause-and-effect relationships, and case-based illustrations highlighting the major opportunities and cautions shaping the market through 2032.

South Korea Biomass Power Market Overview and Size

The South Korea biomass power market is valued at approximately ~USD ~ billion, representing electricity generation from organic feedstocks such as wood pellets, agricultural residues, municipal waste biomass, landfill gas, and biogas through combustion, gasification, anaerobic digestion, and co-firing technologies. Biomass power plays a strategic role in South Korea’s renewable energy portfolio as it offers dispatchable power generation that complements intermittent renewable sources such as solar and wind.

South Korea has emerged as one of the largest biomass energy consumers in Asia, primarily driven by the government’s Renewable Portfolio Standard (RPS) which mandates power producers to generate a certain portion of electricity from renewable sources. Biomass power plants and coal-biomass co-firing projects have become an important pathway for utilities to meet renewable energy targets while utilizing existing thermal power infrastructure.

The market is supported by strong demand from independent power producers (IPPs), utility companies, industrial power consumers, and district heating operators seeking to diversify energy sources and reduce carbon emissions. Biomass power projects also benefit from South Korea’s reliance on imported energy resources, encouraging diversification through renewable energy supply chains such as imported wood pellets and domestic biomass waste streams.

Regionally, industrialized provinces such as Gyeonggi, South Gyeongsang, and North Jeolla represent major biomass power generation hubs due to the presence of industrial clusters, waste-to-energy facilities, and access to port infrastructure that facilitates biomass feedstock imports. Coastal regions play a critical role because many biomass plants are located near ports to reduce logistics costs associated with importing wood pellets from Southeast Asia, North America, and Australia.

What Factors are Leading to the Growth of the South Korea Biomass Power Market:

Renewable Portfolio Standard (RPS) compliance drives biomass power investments South Korea’s Renewable Portfolio Standard requires major electricity generation companies to meet renewable energy quotas, creating strong demand for biomass power generation. Biomass is particularly attractive for utilities because it provides stable baseload power compared to intermittent renewables. As a result, coal power plants are increasingly incorporating biomass co-firing technologies to achieve renewable energy credits (RECs) while utilizing existing power generation infrastructure.

Increasing demand for dispatchable renewable power strengthens biomass adoption As South Korea rapidly expands solar and wind energy capacity, grid stability has become a major concern. Biomass power provides dispatchable electricity generation that can be ramped up or down depending on grid demand. This flexibility enhances energy security and grid balancing, particularly during peak consumption periods or when solar and wind generation fluctuate.

Industrial waste and municipal biomass utilization improves circular economy outcomes The government is promoting biomass power generation as part of broader waste management and circular economy strategies. Biomass facilities convert organic waste, agricultural residues, and municipal solid waste into electricity and heat, reducing landfill dependence and improving resource efficiency. Waste-to-energy biomass plants in metropolitan regions are increasingly integrated with district heating systems, enhancing energy recovery efficiency.

Which Industry Challenges Have Impacted the Growth of the South Korea Biomass Power Market:

Dependence on imported biomass feedstock exposes power producers to supply chain volatility and price fluctuations: South Korea’s biomass power industry relies heavily on imported feedstocks such as wood pellets and biomass residues due to limited domestic forestry and agricultural biomass resources. A large share of these imports originates from Southeast Asia, North America, and Australia. Any disruption in global shipping routes, pellet supply shortages, currency fluctuations, or export restrictions from supplier countries can increase fuel procurement costs and reduce the economic viability of biomass plants. These supply chain risks create uncertainty for utilities and independent power producers planning long-term biomass generation capacity.

Policy adjustments to renewable energy credits (RECs) affect investment incentives for biomass projects: South Korea’s Renewable Portfolio Standard (RPS) framework has historically supported biomass power generation through renewable energy certificate (REC) multipliers. However, periodic revisions to REC weighting—especially for imported biomass or coal-biomass co-firing—have created uncertainty among investors. When REC multipliers are reduced, revenue streams from biomass projects decline, affecting the financial feasibility of new plants and discouraging utilities from expanding biomass-based generation capacity.

Environmental concerns regarding sustainability of imported biomass limit expansion potential: Biomass power generation, particularly when based on imported wood pellets, has faced scrutiny from environmental organizations and policymakers. Critics argue that large-scale pellet production can lead to deforestation, land-use changes, and carbon accounting complexities if sustainable forestry practices are not strictly monitored. These concerns have led to increased regulatory oversight and public debate regarding the sustainability of biomass imports, potentially slowing down new project approvals.

What are the Regulations and Initiatives which have Governed the Market:

Renewable Portfolio Standard (RPS) framework mandating renewable energy generation targets: South Korea’s Renewable Portfolio Standard is one of the most important policy mechanisms supporting biomass power development. The policy requires major power producers with generation capacity above a specified threshold to generate a certain percentage of electricity from renewable sources. Biomass power generation—both dedicated plants and coal-biomass co-firing projects—contributes to meeting these mandatory renewable energy quotas. The RPS system also incorporates renewable energy certificates (RECs), which provide financial incentives to power producers based on the type and source of renewable energy generation.

Carbon neutrality roadmap and national decarbonization targets encouraging renewable power investments: The South Korean government has committed to achieving carbon neutrality by 2050 and has introduced several strategic roadmaps to reduce greenhouse gas emissions across the energy sector. Biomass power is considered a transitional renewable energy source that can support decarbonization while providing stable electricity generation. Government policies encourage utilities and industrial energy consumers to integrate renewable energy sources—including biomass—into their energy portfolios as part of broader climate action commitments.

Waste management and circular economy initiatives promoting biomass-based waste-to-energy systems: National waste management policies support the development of biomass power plants that utilize municipal solid waste, agricultural residues, food waste, and industrial organic waste streams. Waste-to-energy facilities convert organic waste into electricity and heat while reducing landfill dependency and methane emissions. Many biomass power facilities in South Korea are integrated with district heating systems, improving overall energy efficiency and contributing to sustainable waste management practices.

South Korea Biomass Power Market Segmentation

By Feedstock Type: Wood pellets hold the dominant share in the South Korea biomass power market Wood pellets represent the largest share of biomass feedstock used in power generation due to their consistent calorific value, standardized quality, and compatibility with existing coal power infrastructure through co-firing systems. South Korea imports large volumes of wood pellets from Southeast Asia, North America, and Australia, enabling utilities to maintain stable fuel supply chains for power generation. While other feedstocks such as agricultural residues, municipal solid waste biomass, and biogas are gradually expanding, wood pellets remain the preferred fuel due to their scalability and logistical efficiency in large-scale biomass plants.

Wood Pellets  ~55 %
Agricultural Residues  ~15 %
Municipal Solid Waste Biomass  ~12 %
Biogas & Landfill Gas  ~10 %
Industrial Biomass Residues  ~8 %

By Conversion Technology: Combustion and co-firing technologies dominate the market Direct combustion and coal-biomass co-firing technologies dominate biomass power generation in South Korea because they allow utilities to retrofit existing coal-fired power plants with minimal infrastructure changes. This approach significantly reduces capital expenditure compared to building dedicated biomass plants. Other technologies such as anaerobic digestion and gasification are gaining attention for waste-to-energy projects and decentralized biomass power generation, particularly in municipal waste management facilities and industrial energy systems.

Direct Combustion Biomass Plants  ~45 %
Coal–Biomass Co-firing Systems  ~30 %
Anaerobic Digestion (Biogas Power)  ~15 %
Gasification & Advanced Biomass Systems  ~10 %

Competitive Landscape in South Korea Biomass Power Market

The South Korea biomass power market demonstrates moderate concentration, characterized by a mix of large utility companies, independent power producers, and energy infrastructure developers. Market leadership is shaped by access to feedstock supply chains, renewable energy certificate (REC) generation capacity, power plant operational efficiency, and strategic partnerships with international biomass suppliers. Utilities with existing coal-fired generation infrastructure maintain a strong competitive advantage because they can integrate biomass co-firing technologies with lower capital investments compared to greenfield biomass plants.

Some of the Recent Competitor Trends and Key Information About Competitors Include:

Korea Electric Power Corporation (KEPCO): As South Korea’s largest electric utility, KEPCO plays a central role in the biomass power ecosystem through its subsidiaries operating thermal and renewable energy plants. The company continues to integrate biomass co-firing technologies into existing coal-fired power plants to meet renewable energy generation targets under the Renewable Portfolio Standard framework.

SK E&S: SK E&S has expanded its renewable energy portfolio by investing in biomass-based power generation and waste-to-energy projects. The company focuses on developing integrated energy platforms combining renewable electricity generation with industrial energy supply systems, strengthening its position in South Korea’s energy transition landscape.

POSCO Energy: POSCO Energy leverages its industrial ecosystem and energy infrastructure expertise to develop biomass and renewable energy projects that support decarbonization goals within the steel and manufacturing sectors. Its focus includes combined heat and power systems that improve energy efficiency across industrial operations.

Hanwha Energy: Hanwha Energy has been actively expanding its renewable energy investments, including biomass and waste-to-energy power projects. The company’s competitive advantage lies in its diversified renewable energy portfolio and strategic partnerships across Asia’s biomass supply chain.

GS Energy: GS Energy continues to invest in renewable and low-carbon energy solutions, including biomass-based power generation integrated with district heating and industrial energy systems. The company benefits from strong infrastructure development capabilities and strategic investments in energy transition technologies.

What Lies Ahead for South Korea Biomass Power Market?

The South Korea biomass power market is expected to expand at a measured pace by 2032, supported by the country’s renewable energy transition agenda, utility-level compliance with Renewable Portfolio Standard obligations, and the growing need for dispatchable renewable power within an increasingly diversified electricity mix. Growth momentum is further supported by industrial decarbonization priorities, waste-to-energy integration, and the strategic role of biomass in balancing intermittent renewable sources such as solar and wind. As utilities, industrial operators, and municipal authorities continue to seek reliable low-carbon power generation pathways, biomass power will remain an important transitional and complementary energy source within South Korea’s evolving energy landscape.

Transition Toward More Sustainable and Traceable Biomass Feedstock Supply Chains: The future of the South Korea biomass power market will increasingly depend on stronger sustainability verification, traceability frameworks, and diversified sourcing strategies for biomass feedstocks. Heavy reliance on imported wood pellets has supported rapid capacity expansion, but concerns around lifecycle emissions, deforestation linkages, and supply concentration are likely to push the market toward better-certified sourcing practices and a broader feedstock mix. Power producers that secure long-term supply contracts with credible sustainability credentials and lower logistics risk will improve their competitive positioning through 2032.

Growing Shift from Simple Co-Firing to Higher-Efficiency and Dedicated Biomass Systems: While coal-biomass co-firing has been a practical route for renewable power compliance, the market is expected to gradually move toward more efficient and purpose-built biomass generation systems. Dedicated biomass plants, advanced combustion systems, and combined heat and power configurations will gain greater relevance where utilities and industrial operators seek improved efficiency, lower operational constraints, and better alignment with long-term decarbonization targets. This shift will be especially important as policy frameworks increasingly differentiate between transitional biomass usage and higher-efficiency renewable energy applications.

Stronger Integration of Waste-to-Energy, Circular Economy, and Urban Energy Systems: Biomass power in South Korea is expected to benefit from closer alignment with municipal waste management and circular economy objectives. Urban and industrial regions generate substantial quantities of organic waste, food waste, sludge, and industrial biomass residues, creating opportunities for localized waste-to-energy systems. Through 2032, biomass power plants linked to district heating, municipal energy recovery, and industrial steam supply systems are likely to gain traction as authorities prioritize landfill reduction, methane mitigation, and improved resource recovery economics.

Increasing Focus on Industrial CHP and Decarbonization-Oriented Energy Solutions: Industrial energy users in sectors such as chemicals, refining, steel processing, food manufacturing, and heavy industry are expected to adopt more biomass-linked combined heat and power systems as part of broader carbon reduction strategies. These users value CHP systems because they provide both reliable electricity and process heat while improving overall fuel efficiency. As energy cost pressures and decarbonization requirements increase, biomass CHP solutions will become more attractive in industrial clusters where waste biomass or imported feedstocks can be integrated into long-term energy planning.

South Korea Biomass Power Market Segmentation

By Feedstock Type

• Wood Pellets
• Agricultural Residues
• Municipal Solid Waste Biomass
• Biogas & Landfill Gas
• Industrial Biomass Residues

By Conversion Technology

• Direct Combustion Biomass Plants
• Coal–Biomass Co-firing Systems
• Anaerobic Digestion (Biogas Power)
• Gasification & Advanced Biomass Systems

By Plant Capacity

• Large-scale Plants (>100 MW)
• Medium-scale Plants (30–100 MW)
• Small-scale Plants (<30 MW)

By Application

• Utility-scale Electricity Generation
• Industrial Combined Heat & Power (CHP)
• District Heating Systems
• Municipal Waste-to-Energy Applications

By Region

• Seoul Capital Region
• South Gyeongsang
• North Jeolla
• South Jeolla
• Other Industrial and Port-linked Regions

Players Mentioned in the Report:

• Korea Electric Power Corporation (KEPCO)
• Korea South-East Power (KOEN)
• Korea Midland Power (KOMIPO)
• Korea East-West Power (EWP)
• Korea Western Power (KOWEPO)
• Korea Southern Power (KOSPO)
• SK E&S
• GS Energy
• POSCO Energy
• Hanwha Energy
• OCI Power
• SGC Energy
• Samsung C&T Energy Solutions
• Korea District Heating Corporation
• Korea Environment Corporation

Key Target Audience

• Biomass power plant developers and independent power producers
• Utility companies and thermal power plant operators
• Biomass feedstock importers, traders, and logistics providers
• Industrial companies evaluating CHP and decarbonization solutions
• Municipal authorities and waste-to-energy infrastructure planners
• District heating network operators
• Renewable energy investors and infrastructure funds
• Engineering, procurement, and construction companies in energy infrastructure

Time Period:

Historical Period: 2019–2024
Base Year: 2025
Forecast Period: 2025–2032