IEEJ：October 2018○ｃIEEJ 2018
Special Bulletin
A Japanese Perspective on the International Energy Landscape (396)

October 5, 2018

Participation in Korea Energy Transition Conference 2018
Ken Koyama, PhD
Chief Economist, Managing Director
The Institute of Energy Economics, JapanOn October 4, I took the opportunity to participate in the Korea Energy Transition
Conference 2018 (that took place October 4 and 5) in Seoul. Hosted by the South Korean Ministry ofTrade, Industry and Energy, the conference was organized and operated by South Korean energyorganizations such as the Korea Energy Foundation and the Korea Energy Economic Institute(KEEI), as well as relevant corporations. As indicated by its title, “Energy Transition, for a BetterFuture,” conference participants discussed how South Korea’s future energy would be and how toproceed with energy transition toward the future.
The Moon Jae In administration inaugurated in May 2017 has attempted to implement newpolicies in various fields including energy. The administration has come up with and is about toimplement a policy of transitioning from coal and nuclear energy to renewable energy and naturalgas as major energy sources. Coincidently, energy transition has become a keyword amid various
technological innovations and energy market changes in the world. In such circumstances, South
Korean energy policy stakeholders from government, industry and academia sectors were invitedalong with foreign experts and industry people to the two-day conference, having active discussions
on South Korea’s energy transition.
Reflecting the current administration’s problem consciousness, foreign invitees remarkably
included experts, government officials and businessperson from such countries as Germany andDenmark. In a keynote address after the opening ceremony, Professor Dr. Peter Hennicke, a former
president of Germany’s Wuppertal Institute, explained the initiatives taken, achievements and futurechallenges regarding “Energiewende” or energy transition in Germany and emphasized thesignificance of international energy cooperation including Germany-South Korea collaboration.
In a session in which I participated, Danish Energy Agency Director-General Kristoffer
Böttzauw explained Denmark’s energy transition including the expansion of wind power generation.
He emphasized that the key to energy transition in Denmark and Germany would be the powerfulpromotion of wind, solar and other renewable energy sources while top priority would be given toenergy conservation. Kobad Bhavnagri of Bloomberg New Energy Finance described a global
downward trend of wind and solar photovoltaic power generation costs and forecast that renewableenergy sources would dramatically expand their energy mix share.
On Japan’s energy transition initiative, I explained that the fifth Strategic Energy Plan
subjected to a cabinet decision in July this year reaffirmed a policy of achieving a 2030 target energy
mix steadily and introduced a multiple track scenario approach considering innovative technologies
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IEEJ：October 2018○ｃIEEJ 2018
to be developed over a long term. I also emphasized that an approach behind the new Strategic
Energy Plan seeks to simultaneously achieve the so-called 3E’s plus S – Energy security,
Environmental protection and economic efficiency plus Safety – in a balanced manner and that all
feasible energy options should be used effectively with their weak points overcome in the absence of
any almighty energy source.
In panel discussions, I pointed out that when we examine and implement strategy forenergy transition, we should understand and give consideration to country-to-country differences in
geographical, geopolitical and socioeconomic conditions and in energy source endowment andenergy-related infrastructure and that international cooperation would be significant for overcoming
challenges involving such differences.
Interesting to me in this respect was a presentation by former KEEI President Dr. Kim Jin
Woo on “Energy Vision 2040 and Major Policy Direction of Korea” in a session where I was present.
Dr. Kim, who is responsible for a task force to work out the third Basic Energy Plan of Korea, madean interesting report on a basic energy policy guideline or direction and relevant policy measureswhile giving no specific numerical targets.
The basic guideline consists of six pillars: (1) Innovation of energy demand management,(2) Integrated smart energy system centered on renewable energy, (3) Promotion of new energyindustry, (4) Realization of public/decentralized energy governance, (5) Strengthening energy &resource cooperation and (6) Establishment of infrastructure to match energy transition. Particularly,
the first four aim to use advanced technologies for promoting energy conservation and renewableenergy strongly. They are designed to fundamentally enhance energy and environmental measures,
foster new industries and expand employment. In this sense, the third Basic Energy Plan may takethe abovementioned German and Danish initiatives into full account.
In panel discussions, however, Dr. Kim pointed out that the future picture of energy that
South Korea is mapping for energy transition should be not only ambitious but also realistic. He
meant that the ambitiousness of the targets should be balanced with their reality. He also noted thatfull consideration should be given to country-to-country differences in conditions for energy
transition, as I pointed out. I am looking forward to seeing how the final third Basic Energy Plan
would be and what policy measures Seoul would pursue for realizing the plan. However, I would
like to emphasize here that energy transition would not be easy for any country.
South Korea, Japan and all other countries will have to tackle the challenge to balance
ambitious energy transition targets with realities, as noted by Dr. Kim. The challenge will require
each country to secure wide support from respective citizens based on scientific, objective andreasonable information, analyses and arguments.
Contact: report@tky.ieej.or.jp
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