Korea’s Energy Landscape and

Future Direction

Ki hyun Park
Korea Energy Economics Institute
Contents

1 Korea’s Current Energy Status

2 Paradigm Shift of Korea Energy Policy

3 Korea Energy Future Directions

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1 Korea’s Current Energy Status

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1. Korea’s Past and Present
PAST (1964)
-GDP : $3 billion
-Population : 25 million
-Per Capita GDP : $106
-Energy Consumption : 11 (MTOE)
-Per Capita Consumption : 0.45 (TOE)
-Electricity consumption : 46 kWh/PER

PRESENT(2014)
-GDP : $1,426 billion
-Population : 50.7 million
-Per Capita GDP : $28,000
-Energy Consumption : 283 (MTOE)
-Per Capita Consumption : 5.61(TOE)
-Electricity consumption : 9,500kWh/PER

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2. Dependence of Energy

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3. Energy Mix in Korea(2013)
4. Korea’s Energy Balance (2014)

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 5. Overview of Korean Economy and Energy Sector Change

90’s
1960’s 1970’s 1980’s After
to ’05
 Launching  Industrial  Development of  Nurturing of
1st economic  Industrialization
diversification high-tech industries green industry
Economy

develop. Plan (62) - Rapid growth - semi-conduct such as IT and ICT-

- Rapid growth of heavy & based industry
of light industry chemical industry - automobile etc
 OECD member (96)
※ Undeveloped  Rapid economic  Creative
industrial structure  Liberalization of economy
growth
(mainly focused on the industry
agricultural sector)

 Deregulation and  New High/Low

 Initial Energy  Energy Security
Liberalization Oil Price Era
Development - 1st & 2nd Oil shock
- Oil Price Liberalized - Price System
Energy

- Energy Poverty - Oil security

- Power & Gas - Public Accept
- Coal, Power, - Diversification: Restructured
Oil source for * Gas, coal, nuclear
economic take-off * Imports sources

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2 Paradigm Shift of Korea Energy Policy

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1. Global Energy Issue: Post-2020
Climate Change
• Average temperature rise
• Frequent and severe
extreme incidents
• Water shortage: 3.9 bill.
person by 2030 (OECD)
Economic Loss
• Korea: KRW 11.6 trill. loss
from natural disasters during
this decade
• World: USD 1.2 trill. loss every
year
Fossil Fuel
Use • Death toll due to climate
change: 5 mill. yearly (DARA)
Domestic reduction(25.7%)+global carbon market(11.3%)
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2. Post-2020 GHG Reduction Target of Korea
 Korea submitted “more advanced” GHG emissions reduction
Target for Post-2020

■ Korea’s GHG reduction target ■ INDCs from other countries

Target Base
Party Type Target
Year Year
“37% reduction EU Absolute -40% 2030 1990
target” from US Absolute -26 ~ -28% 2025 2005
2030 BAU Mexico BAU -25 ~ -40% 2030 N.A.
Russia Absolute -25 ~ -30% 2030 1990
 Domestic
China Intensity -60 ~ -65% 2030 2005
reduction 25.7%
 Global carbon Korea BAU -37% 2030 N.A.
market 11.3% Singapore Intensity -36% 2030 2005
Japan Absolute -26% 2030 2013

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3. Paradigm Shift of Energy Policy in Korea
3 Korea Energy Future Directions

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Challenges and Opportunities

Korea’s major
industries facing
low growth

Need for Transform to a

developing new More investment low-carbon
capability high-efficiency
growth engine
energy system

Take the current changing environment, e.g., low oil

price, stricter response to climate change, as an
opportunity to become an energy powerhouse

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Korea’s Energy Issues to be Considered

Nurture Energy New Industry

Lay a Foundation for Electricity

Lay a Foundation for Oil

Lay a Foundation for Natural Gas

Promoting Renewable Energy Industry

Enact Safety-First Nuclear Policy

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1. Energy New Industry
Basic Concept
An industry that create new markets for energy efficiency improvements and
reduce GHG emissions, creating a new growth engine
By innovating the way energy is produced and consumed and by introducing new
business models
Through convergence between existing energy industries and ICT, manufacturing
and financial sectors
Thermal Effluent from Exchange Market of
Power Plants Demand Resource ESS EV

Energy Independent Solar Energy Rental Zero-Energy Buildings Eco Energy Towns
Islands

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1. Energy New Industry - Goal

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1. Energy New Industry – Expansion Strategy

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1. Energy New Industry – Expansion Strategy

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1. Energy New Industry – Expansion Strategy

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 1. Energy New Industry

Future Plans

■ To increase investment by initiating financial support to

promote private sector investment, developing ‘locally’
customized energy-related business models

■ To export energy new business models by utilizing Green

Climate Fund

■ To enact a special law on Energy New Industry to lay an

institutional foundation to nurture the Industry

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2. Lay a Foundation for Energy S&D: Electricity

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2. Lay a Foundation for Energy S&D: Electricity

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3. Lay a Foundation for Energy S&D: Oil

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4. Lay a Foundation for Energy S&D: Natural Gas

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5. Promoting Renewable Energy Industry

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 6. Safety-First Nuclear Power

 Increasing investment to replace existing nuclear facilities (‘12-’17, 1.1 trill. won)
 Expanding low-and-intermediate-level radioactive waste disposal facilities (#1 in
operation since Aug. 2015, #2 will be built by 2019)
 Enacting “Basic Plan for Spent Fuel Management”

■ Unplanned Outrage Rate (2012-14 Average) ■ NPP Operational Safety Performance Indicators
(‘15. 1Q)

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