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Experiences in Sustainable Energy Development of Korea

The paradigm shift from supply-side management to demand-side management (DSM) 
such as energy conservation and energy efficiency is an important issue in the energy 
sector across the world. The construction of new nuclear power plants are getting 
difficult in Korea, and the reduction of greenhouse gas emission from consuming fossil fuel
is required internationally. 
Improving energy efficiency is top policy issues for both energy importing countries and 
energy exporting countries. In view of Korea’s high dependency on energy imports (96%),
improving energy efficiency is inevitable. 
There are some tasks in LAC countries for the transition to energy policies focused on 
demand-side management.

First, adjusting or reforming energy tax rates are necessary for stable funding in energy sector 
since financing has been one of the major obstacles for energy efficiency investment in Korea. 
Second, it is recommended having various sectoral DSM policies such as residential or 
industrial sectors in LAC countries. 
Third, establishing a demand management system based on ICT such as Smart grids is 
more efficient way.

Smart grids facilitate real time and two-way communication between electricity producers and 
consumers and induce to save electricity, supply renewable energy and support 
the electric vehicle sector. 
The foundation for commercialization of smart grid was laid through the establishment of 
a Jeju Smart Grid Test Bed. 
It includes the development of Advanced Metering Infrastructure (AMI), 
Energy Management System (EMS), Energy Storage System (ESS) and other key technologies. 
With the Korean experience of the Smart grids, various projects can be applicable 
to the LAC regions such as Smart City project. 
A new Smart girds business eco-systems can be created in Smart Cities. 
Promoting new businesses in areas such as smart grid and renewable energy will create 
a new growth engine for economic growth.

Finally, we have experienced success and failure in the process of renewable energy development. 
Why Korea invests on new renewable energy? There are three reasons. 
First, Korea is the 7th largest greenhouse gas emission country in the world so that 
we need to reduce emission to respond to the climate change. 
Second, Korea’s energy import dependency is 96%. 
To ensure energy security, we need renewable energy. 
Third, as an export dependent country, we need a new growth engine.

Renewable energy contributes to reduction of greenhouse gas emission and 
the Korean economy a lot in terms of value creation. 
Korea is building a unique system to achieve three purposes of renewable energy. 
Korea is continuously building the renewable energy industry and developing technologies 
while other countries mostly focus on deploying renewable energy. 
Developed technologies are heading for the industry and products produced 
in the industry are used to distribute renewable energy. 
The Korean government also supports nurturing human resource, technology certification, 
subsidy and tax incentive, and promotion for efficient operation among R&D, 
the industry and deployment.

We suggest creating joint R&D for sustainable energy and sharing continuously 
experience in energy policy and information. 
Also, Korea and LAC countries can try to promote trade in energy efficiency, smart grid, 
and renewable energy goods. 
106.247.84.121

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