Conventional literature argues that the competitiveness of new energy
technologies is dependent on existing market conditions. Moreover, con
temporary analyses have suggested that enhanced, energy-related resear
ch and development activities alone an insufficient to ensure a sustai
nable future. Korea's energy policies, meanwhile, have given top prior
ity to research and development of new energy technologies. Given the
aforementioned approaches, the Korean government has adopted ''diffusi
on-oriented'' policies that encourage technology transfer, internation
al alliances, and the dissemination of information to supplement resea
rch and development. In addition, it has adopted the policy that marke
t barriers can be overcome in part by direct government involvement in
the energy marketplace, under the premise of promoting the public goo
d. The present paper analyzes Korea's national energy strategy, descri
bes the potential contributions of new energy technologies, and provid
es an overview of Enertopia, a major demonstration project being spons
ored by the central government to test the viability of the sustainabl
e development concept.