IEEJ：May 2019 © IEEJ2019

Energy Transition Strategy & NEA Cooperation

Yongsung Cho
Korea Energy Economics Institutewww.keei.re.kr

IEEJ：May 2019 © IEEJ2019

Energy Policy Challenges in Korea : Status
RE share of Power Generation in Major Countries

Source: Ministry of Trade, Industry and Energy (MOTIE)2

IEEJ：May 2019 © IEEJ2019

Power Price of Residential(unit: US$/MWh)

Source: Bloomberg NEF

3

IEEJ：May 2019 © IEEJ2019

Industrial Power Price(unit: US$/MWh)

Source: Bloomberg NEF

4

IEEJ：May 2019 © IEEJ2019

Energy Transition Policy of Korea
Nuclear Power phase out•

To stop the building of new 6 reactors (8.6GW)•Not to permit the operation extension : In 2030, expected to phase out 11 reactors (9.3GW)

Reducing reliance on coal and putting stricter regulation on emission•

Temporary shut down coal-fired power plants•

Reforming fuel tax system to reflect environmental cost•

To Switch planned coal power plants to LNG•

Shut down 10 old coal-fired power plants (3.3GW)

Expansion of Renewable Energy

5

IEEJ：May 2019 © IEEJ2019

80000(unit : MW)
70000

유연탄 설비용량60000

원자력 설비용량50000

40000

30000

20000

10000

017192123252729313335373941434547495153555759616365676971

73757779

681

IEEJ：May 2019 © IEEJ2019

Paradigm shift of Energy Policy in Korea

7IEEJ：May 2019 © IEEJ2019

Progress of Energy Transition in Korea
8th Basic Plan for Long-term Electricity Supply and Demand (Dec. 2017)

Renewable Energy 3020 (Dec. 2017)

Revised 2030 GHG Reduction Roadmap (Jul. 2018)
Consistency

3rd Energy Master Plan (expected May. 2019)
9th Basic Plan for Long-term Electricity Supply and Demand (2019)8IEEJ：May 2019 © IEEJ2019Decarbonization Target

9IEEJ：May 2019 © IEEJ2019

Revised 2030 GHG Reduction Roadmap

GHG Reduction Target(Million tons)
37%
from BAU(315)

Domesticreduction(25.7%)
Overseasreduction(11.3%)

10IEEJ：May 2019 © IEEJ2019

Renewable Energy 3020

Current and New Targets for Renewable Energy(%)

Targets for Renewable Energy Mix by Source(cumulative, GW)
PV

25.0%
20.0%

20.0%

Bio-E

Waste-E

Etc.

70
60

15.0%
10.0%

Wind

50

11.7%

17.7

407.2%

30
205.0%

100.0%
2016

Current Target

3020 Target

036.5
1.25.720172030

11

IEEJ：May 2019 © IEEJ2019

3rd Energy Master Plan

DemandSupplyEnvironment

Participation

2017

2030

2040

Total Final Energy Consumption(mil. toe)

176.0

179.5

176.6

Energy Intensity(toe/mil. KRW)

0.113

0.084

0.072

Share of Renewable Energy in elec.
Generation (%)

7.6(est.)

20

25~40

GHG missions from fuel combustion(mil. ton)

601.0
(’15)

536.5

PM emissions in power sector(thousand ton)

34

13

PM emission in transportation sector(thousand ton)

34

27

21

Renewable energy power plants(ten thousand)

43

471

611~1,039(30~35)This is recommendation by Working Group.
The 3rd Energy Master Plan is under further consideration by the government.

12IEEJ：May 2019 © IEEJ2019

Korea Initiative on Energy Efficiency (under consulatation)‘Efficiency First’ Policy direction

3 Key direction to reform of energy consumption structure

5 Main Sectors & 12 Core Tasks
Market Transformation①Top runner initiative, ②smart mobility

Platform③EMS, ④National Energy Information Integrated Platform,⑤Energy Innovation Community, ⑥Community based Platform

Statistics⑦Benchmark in industry sector, ⑧Benchmark in building sector

Cooling/Heating⑨Diversifying cooling/heating resources ⑩Korea Heat Plan

Minimizing energy loss

⑪Enhance Network Efficiency ⑫Minimizing loss in each sector
13

IEEJ：May 2019 © IEEJ2019

NEA Cooperation

14

IEEJ：May 2019 © IEEJ2019

NEA Cooperation• Promotion of Trade through Expansion of LNG SWAPTransaction in Northeast Asia
• Analysis of the benefits of the (NEA) power grid connection• Cooperation with the energy sector in response to climatechange (e.g., energy efficiency, technology development)• Cooperation with the energy sector in order to improve airquality (e.g., PM2.5) in Northeast Asia
15

IEEJ：May 2019 © IEEJ2019

Thank youyscho@keei.re.kr

16

IEEJ：May 2019 © IEEJ201917

IEEJ：May 2019 © IEEJ2019

Contact :report@tky.ieej.or.jp

18