[Work Report] Energy Innovation Based on 'Renewable Energy and Hydrogen'... Cost Compensation Planned for Coal and Nuclear Reduction

Ministry of Industry 2021 Work Plan

Expansion of Participatory Renewable Energy Power Projects
First Designation of Integrated Complexes Planned and Operated by Local Governments
Construction of 10 New Hydrogen Production Bases
Cost Compensation and Alternative Industry Support for Power Plant Reduction and Closure

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[Sejong=Asia Economy Reporter Joo Sang-don] The government plans to promote carbon-neutral energy innovation based on the spread of renewable energy and the hydrogen economy, and actively provide cost compensation and alternative industry support to minimize regional damage caused by the reduction and closure of coal and nuclear power plants.

On the 17th, the Ministry of Trade, Industry and Energy announced its 2021 work plan containing these details.

The Ministry of Industry selected 'carbon-neutral energy innovation' as one of the major tasks to be promoted this year. The core is to promote energy innovation centered on two pillars: renewable energy and hydrogen.

First, to expand renewable energy, the scope of participation will be expanded to include areas around transmission lines near existing power plants in towns, townships, and neighborhoods to encourage more resident participation. In addition, integrated complexes planned and operated by local governments will be designated for the first time, and the establishment of 'regional energy centers' to promote locally led new renewable energy dissemination will also be pursued.

Efforts will also be made to reinforce the power system to respond to the variability of renewable energy, whose power generation is inconsistent. In the second half of this year, a 'renewable energy power generation prediction and control system' will be established in Jeju and then expanded nationwide next year.

Focused investment will also be made in the hydrogen industry, another major pillar of energy transition. Within this year, 10 new production bases will be constructed by region. One medium-to-large scale base will be built near the natural gas supply network, and nine near urban charging stations.

To lower hydrogen prices, tube trailers for hydrogen transport will be secured within the first half of the year and leased at low cost to charging stations. By next year, the establishment of a hydrogen exchange connecting charging stations and suppliers will also be promoted.

To expand hydrogen utilization, a 'hydrogen power generation obligation system' will be introduced targeting power companies, and hydrogen utilization technology development will be pursued mainly in industries with high greenhouse gas emissions.

The Ministry of Industry will also promote minimizing damage caused by energy transition and fostering alternative industries this year. The 'Energy Transition Support Act' will be enacted in the first half of the year to provide legal grounds for supporting regions and industries and compensating power companies. Support will also be provided for business diversification of equipment manufacturers and career transitions for nuclear power personnel, and nuclear power decommissioning research institutes (Busan, Ulsan) and heavy water reactor decommissioning technology centers (Gyeongju) will be established by 2024.

Along with this, energy use reduction in factories and buildings will be encouraged through the introduction of energy efficiency target systems, and from next year, energy efficiency rating systems will be introduced for computers, monitors, and other appliances and office equipment to strengthen consumption efficiency standards.

The Ministry of Industry also plans to actively lead the setting of international agendas in the eco-friendly sector. The United States plans to invest $2 trillion in eco-friendly infrastructure, and China has decided to stop producing internal combustion engine vehicles by 2035. The Ministry aims to expand cooperation based on eco-friendly infrastructure investment and industrial development in major markets.

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