20070531-IEA-Energy_Policies_of_IEA_Countries_Republic_of_Korea_2006_Review_164页_1mb

Energy Policies of IEA Countries: The Republic of Korea 2006 Review

Executive Summary

Korea's energy policy expanded beyond security of supply to include economic efficiency and environmental protection. The IEA commends Korea's progress but highlights areas needing more work, particularly energy market liberalization. Korea has focused on nuclear energy, gas, and renewables while reducing oil dependence. Energy efficiency improvements have been made, but cost-effective policies are needed, especially in transportation and buildings. New and renewable energy deployment requires more effective support mechanisms.

Energy Mix & Imports

Korea relies heavily on imported energy, with oil being the dominant fuel. Nuclear power provides nearly 40% of electricity generation, while renewables have a low share (around 2%) in primary energy supply. Natural gas has grown significantly but remains largely imported.

Government Policies

Key policy areas include nuclear development, with excellent safety records; energy market liberalization; fuel switching from oil to gas; renewable energy promotion; and energy efficiency measures. Voluntary agreements have reduced energy intensity slightly. Climate change mitigation is prioritized but lacks binding targets.

Recommendations

1. Energy Market Reform: Establish independent regulators and implement open access to achieve liberalization.
2. Environmental Policy Integration: Adopt market-based mechanisms like carbon pricing and emissions trading.
3. Enhanced Energy Efficiency: Set ambitious targets for transport and buildings, and strengthen enforcement.
4. Renewable Energy Expansion: Monitor progress toward 3% (2006) and 5% (2011) renewable energy goals.
5. Coal Phase-Out: Establish timetables for eliminating subsidies and phasing out domestic production.
6. Price Reforms: Remove subsidies and cross-subsidization to reflect true costs of energy resources.