Korea Energy Transition Index Ranks Lowest Among Developed Countries... "Nuclear Power Is the Alternative"

[Asia Economy Reporter Suyeon Woo] As South Korea's energy transition index ranks among the lowest in advanced countries, there are calls to actively utilize nuclear power, a low-carbon energy source.

On the 6th, the Federation of Korean Industries analyzed the 2021 Energy Transition Index (ETI) released by the World Economic Forum (WEF) and evaluated that South Korea ranked 29th out of 31 advanced countries, placing it near the bottom. Among all 115 countries, it ranked 49th, placing it in the mid-range, with a score of 60.8, which is lower than the advanced countries' average score of 68.4.

The WEF's Energy Transition Index consists of nine categories, among which South Korea scored lower than the advanced countries' average in sustainability (45.2 points) and energy structure (43 points). This is because South Korea has a higher proportion of coal power generation and a lower proportion of renewable energy generation compared to advanced countries, along with higher per capita carbon emissions.

Energy Transition Index (ETI) Evaluation Structure / Source=WEF, Federation of Korean Industries

According to the WEF, South Korea's coal power generation accounted for 40.8% in 2019, which is 27.8 percentage points higher than the average of 13.0% among the 31 countries classified as advanced by the WEF. However, the share of renewable energy generation was 5.5%, which is 32.7 percentage points lower than the advanced countries' average of 38.2%. Meanwhile, per capita carbon emissions were 11.7 tons, 3.9 tons higher than the advanced countries' average of 7.8 tons.

Advanced countries are actively reducing the share of coal power generation while cutting carbon emissions. In particular, the WEF named Denmark, Finland, and the United Kingdom as the countries that have achieved the most energy transition over the past decade. This was possible due to abundant renewable energy resources. The offshore wind potential of Nordic countries, including the UK and Denmark, accounts for two-thirds of the entire European potential.

On the other hand, South Korea faces difficulties in expanding renewable energy facilities that require large areas due to its mountainous terrain and high population density. The International Energy Agency (IEA) pointed out these geographical characteristics of South Korea as limitations to energy transition and mentioned that the lack of smooth cross-border electricity trade could also be an obstacle to stable power supply and energy transition.

According to South Korea's renewable energy roadmap, greenhouse gas emissions must be reduced by 50% by 2050 compared to 2017 (approximately 710 million tons), and the share of renewable energy must be expanded to 50% of total power generation. However, the industry points out that South Korea lacks sufficient sites and facilities to expand renewable energy. According to the Korea Energy Economics Institute, to exceed 50% renewable energy in total domestic power generation, an expansion of 212 GW of facilities is required, but the maximum capacity that can be realistically deployed domestically without site issues is estimated to be around 155 GW.

Therefore, the Federation of Korean Industries emphasized nuclear power as one of the alternatives South Korea can use for low-carbon energy transition. In particular, it is expected that the utilization of nuclear power will increase significantly once small modular reactors (SMRs), which allow flexible site selection and adjustable output, are commercialized around 2030, in addition to large nuclear power plants.

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