Minister Kim Sung-hwan: "Expanding Renewable Energy to 100GW... Promoting Regional Electricity Rate System"

First Anniversary Press Conference of the Government Launch
"53–61% GHG Reduction Compared to 2018 NDC"

Kim Sung-hwan, Minister of Climate, Energy and Environment, announced on June 4 that he will pursue an energy transition by expanding renewable energy facilities to over 100GW during his term and eliminating coal-fired power generation by 2040.

At a press conference marking the first anniversary of the government's launch held at the Government Complex Seoul, Minister Kim stated, "Korea must transition to a new system that reduces coal, makes gas a backup power source, and utilizes both renewables and nuclear energy."

He further explained, "We plan to submit our 2035 Nationally Determined Contribution (NDC) to the United Nations, setting a target to reduce greenhouse gas emissions by 53 to 61 percent compared to 2018 levels." Kim also emphasized, "We will strengthen the foundation for carbon reduction by reforming the emissions trading scheme and expanding the share of paid allocation in the power generation sector."

Minister Kim also announced plans to restructure the electricity system alongside the expansion of renewables. He said, "We need to shift from a one-way power system centered on large-scale production and transmission to a two-way system." He added, "Following the reform of time-of-use electricity rates, we will introduce a regional electricity rate system that reflects factors such as power plant location, transmission costs, and balanced national development."

Regarding the possibility of electricity rate increases, he said, "Considering the current System Marginal Price (SMP), there is not significant immediate pressure to raise electricity rates." He added, "Industrial electricity rates need to be stabilized downward to maintain international competitiveness." Kim continued, "We are preparing measures to ensure that a sharp rise in gas prices due to worsening conditions in the Middle East does not increase the burden on the public," and "A system to prevent excessive windfall profits by private power generators is also under review."

He went on to say, "The 12th Basic Plan for Long-term Electricity Supply and Demand will include plans for the energy mix, expansion of flexible power sources, restructuring of the five major power generation companies, and a roadmap for eliminating coal-fired power. Key issues will be decided through open debate."

Kim Sung-hwan, Minister of Climate, Energy and Environment, is speaking at a press conference marking the first anniversary of the government’s launch held on the 4th at the Government Complex Seoul. Ministry of Climate, Energy and Environment

"EV Sales Expected to Reach 400,000 Units... Additional Subsidy Budget to Be Secured"

Minister Kim also emphasized that the government will accelerate the expansion of electric vehicle distribution. He said, "This year, EV sales are expected to reach between 350,000 and 400,000 units," and evaluated, "With the introduction of EV transition support funds, this year is becoming a turning point for electric vehicles to become mainstream in terms of public perception." However, he pointed out, "In some local governments, subsidies are being exhausted early," and said, "We will discuss both securing additional budget and converting funds with the Ministry of Economy and Finance."

Regarding decarbonization in the building sector, he said, "We will accelerate the distribution of air-source heat pumps to promote the electrification of heating," and announced, "We are preparing to apply this to apartment complexes starting next year." On anti-plastic policies, he explained, "We will reduce the use of single-use cups by offering discounts of 300 to 400 won for using reusable cups and tumblers," and added, "We will recycle the plastic generated as much as possible within a resource circulation system."

On responding to the climate crisis, he said, "We will secure more than 1 billion tons of water storage to prepare for floods without building new dams," and added, "Our goal is to fundamentally resolve the green algae issue during my term." Minister Kim emphasized, "With the launch of the Ministry of Climate, which integrates the overall climate policy function and the energy implementation tools, the effectiveness of energy transition policies has improved," adding, "In the second half of this year and next year, the public will be able to more clearly feel the changes."

This content was produced with the assistance of AI translation services.