The ongoing conflict involving Iran is serving as a crucial driver for a worldwide energy transformation. With energy security and stable pricing becoming priorities, countries are increasingly investing in renewable energy sources such as solar, wind, and battery storage. This global shift is particularly evident in South Korea, which is significantly altering its energy policies in response to the crisis. According to CNBC, South Korea’s energy minister has described this period as a “significant turning point” for the nation’s energy strategy.
During an interview with CNBC’s Lisa Kim, Minister of Climate, Energy, and Environment Kim Sung-hwan expressed that there is a “growing national consensus” around the urgent need for a comprehensive energy transition. South Korea’s dependency on foreign energy, with about 94% of its needs being imported, highlights its vulnerability to Middle Eastern conflicts, with nearly 72% of its crude oil imports coming from the region.
South Korea’s Renewable Energy Ambitions
South Korea has set an ambitious target to achieve 100 gigawatts of renewable energy capacity by 2030. Currently, the installed capacity stands at approximately 37 GW, as per data from the Renewable Energy Institute. To meet this goal, the South Korean government is focusing on solar and wind energy, with solar expected to play a crucial role in the immediate future.
China’s Influence in the Solar Sector
Despite the global shift towards renewable energy, China continues to dominate the solar industry, controlling much of the production of polysilicon, wafers, photovoltaic cells, and modules. In 2024, Chinese companies accounted for over 95% of South Korea’s solar cell market, a steep increase from 38% in 2019. This dominance has impacted South Korea’s domestic solar manufacturers, whose market share has dipped from 50% to a mere 4% over the same period.
China’s investments in renewable energy have positioned it as the world’s largest manufacturer of solar photovoltaic and wind turbine equipment. Renewable sources like solar, wind, and hydropower now comprise nearly 36% of China’s total electricity generation, up from 16% in 2000, according to the World Resources Institute.
Global Growth in Renewable Energy
The global capacity for renewable energy reached about 49% by the end of 2025, according to the International Renewable Energy Agency (IRENA). This development marks a significant milestone in the global shift towards sustainable energy sources, as reported by solarquarter.com.
Investment Opportunities in Clean Energy ETFs
As the clean energy sector gains momentum, several exchange-traded funds (ETFs) are attracting the attention of long-term investors. Notable ETFs include the iShares Global Clean Energy ETF (ICLN), First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN), State Street SPDR S&P Kensho Clean Power ETF (CNRG), Invesco Global Clean Energy ETF (PBD), and the Invesco WilderHill Clean Energy ETF (PBW).
Original Story at www.zacks.com