Expansion of Renewable Energy Generation Share to 15% in 17 Cities and Provinces by 2025

Ministry of Industry Holds Energy Committee Meeting... 17 Metropolitan Local Governments Establish Regional Energy Plans

[Asia Economy Reporter Moon Chae-seok] Seventeen metropolitan local governments will each expand the share of renewable energy to 15% and the share of distributed power generation to 22% by 2025.

The Ministry of Trade, Industry and Energy finalized the results of the regional energy plans established by the 17 metropolitan local governments at the 20th Energy Committee held on the 12th.

The regional energy plan is a statutory plan established by metropolitan local governments every five years for a period of more than five years to efficiently achieve the Basic Energy Plan and develop the regional economy, according to the Energy Act.

This plan includes the final energy consumption reduction targets by 2025 considering the energy supply and demand environment of each region, as well as sectoral promotion plans such as renewable energy, energy efficiency, and new industries.

The 17 metropolitan local governments set the 2025 final energy consumption target at 204.5 million TOE (tons of oil equivalent), which is 8.7% less than the baseline demand (BAU).

The national target under the 3rd Basic Energy Plan (excluding raw material consumption) is to reduce demand by 14.4% by 2030 compared to the baseline.

The share of renewable energy generation will increase to 15.1% by 2025. The national target for 2030 stated in the Renewable Energy 3020 Implementation Plan is 20%.

The regional targets are in order: Jeju 56.7%, Jeonbuk 49.4%, Sejong 41.3%, Jeonnam 39.1%. Seoul planned 6.1%.

The share of distributed power generation will increase to 22%. If the plan proceeds as scheduled, the 2030 target of 18.4% presented in the 8th Basic Plan for Electricity Supply and Demand will be achieved ahead of schedule.

The share by city and province is Jeonbuk 50%, Gangwon 45.5%, Jeonnam 43.6%, Chungnam 41.8%, in that order.

Each local government also proposed plans to expand new and renewable energy and foster related industries considering the regional energy supply and demand environment.

The Seoul metropolitan area presented business plans such as expanding building-type solar power and fuel cells suitable for urban areas where demand management is easy, and creating smart energy industrial complexes.

The Chungcheong region proposed plans to foster renewable energy and hydrogen industries utilizing solar power manufacturing companies and R&D infrastructure, while the Honam region proposed large-scale solar and offshore wind farms based on abundant renewable energy site potential and fostering new energy industries linked with power public enterprises such as Korea Electric Power Corporation.

The Yeongnam region announced plans to establish a hydrogen production and supply system using by-product hydrogen generated during petrochemical processes and to foster wind power and gas turbine ecosystems utilizing the machinery and shipbuilding industry base.

Gangwon and Jeju plan to create onshore and offshore wind farms based on excellent wind resources, foster the hydrogen economy, and expand electric vehicle distribution.

The government will actively support the effective implementation of regional energy plans and the establishment of a decentralized energy policy promotion system.

First, the central government’s functions will be gradually transferred to enable regions to independently promote energy policies.

In the second half of the year, the Energy Use Rationalization Act will be amended to transfer management functions such as energy diagnosis, improvement orders, and fines for high energy-consuming businesses to metropolitan local governments.

The application reception and review tasks for the renewable energy housing support project will also be transferred to local governments starting this year, and local allocation tax will be distributed differentially according to renewable energy dissemination performance.

Additionally, a new regional energy integrated support project will be promoted, allowing local governments to implement necessary projects for regional energy plan implementation in a package form within their budgets.

Under the Energy Committee, a 'Regional Energy Expert Committee' composed of central government officials, local government nominees, and private members will be established to strengthen the foundation for promoting regional energy policies.

Energy industry convergence complexes will be additionally designated in July, and regional energy statistics will be expanded and established down to the basic local government level.

Minister of Trade, Industry and Energy Sung Yun-mo said, "Seventeen local governments nationwide simultaneously established regional energy plans for the first time, strengthening citizen participation and enabling more effective plans," adding, "The government will also actively support the steady implementation of the plans to establish a participatory and decentralized energy policy promotion system and contribute to revitalizing the regional economy."

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