Energy system of Korea
Korea has set a target of reaching carbon neutrality by 2050 by substantially increasing the share of renewable energy sources, gradually phasing out coal, significantly improving energy efficiency and fostering the country’s nascent hydrogen industry. Korea’s energy sector is characterised by a dominance of fossil fuels, a strong dependence on energy imports and one of the highest shares of industrial energy use among IEA countries. Korea aims to leverage the fourth industrial revolution for its energy transition and to foster green growth by means of low-carbon technologies and clean energy. Due to Korea’s high share of coal-fired power generation, the carbon intensity of its electricity mix is above the IEA average. Korea’s private sector has a high capacity for technology innovation and its population has shown an almost unparalleled openness toward digitalisation. As a result, Korea’s energy transition is closely linked to efforts to spur investments in energy storage systems, smart grids and intelligent transport systems.
Country insights
Key recommendations
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Strengthen the Commission’s responsibilities in areas such as setting tariffs and monitoring of the market, and reinforce staff capacities in line with its increased responsibilities.
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In addition to the clean energy targets, create performance-driven regulatory frameworks for energy efficiency and renewable energy deployment. In order to attract and facilitate investments in clean energy with new business opportunities, also develop regulatory frameworks for competitive energy and gas markets.
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To accelerate the switch to lower emission technologies, warrant that taxation of fuels reflects their external costs, including carbon content and air pollution.
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Ensure the roll-out of infrastructure to support the clean mobility targets.