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Energy Security of Cities in Korea YUN, Sun-Jin (Graduate School of Environmental Studies, Seoul National University) Research Workshop Interconnections of Global Problems in East Asia October 18 th – 21 st , Seoul, South Korea

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Research Workshop Interconnections of Global Problems in East Asia October 18 th – 21 st , Seoul, South Korea. Energy Security of Cities in Korea. YUN, Sun-Jin (Graduate School of Environmental Studies, Seoul National University ). Contents. Energy, Society and Sustainable Development - PowerPoint PPT Presentation

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Page 1: Energy Security of Cities in Korea

Energy Security of Cities in Korea

YUN, Sun-Jin(Graduate School of Environmental Studies,

Seoul National University)

Research WorkshopInterconnections of Global Problems in East AsiaOctober 18th – 21st, Seoul, South Korea

Page 2: Energy Security of Cities in Korea

Contents

1. Energy, Society and Sustainable Development

2. The Current Status of Energy P & C

3. The Current Status of GHG Emission

4. Energy P & C by Region

5. E5 in Korea

6. Energy Alternatives for Sustainable Korea

Page 3: Energy Security of Cities in Korea

1. Energy, Society andSustainable Development

Page 4: Energy Security of Cities in Korea

1. Energy, Society and Sustainable Development

Energy understood by Modernists

Five Stages of Growth by Walt Rostow (1960): Traditional Society The Preconditions for Take-off The Take-off

The Drive to Maturity The Age of High Mass-Consumption

Leslie White: C = E T Technology is an attempt to solve the problems of survival. This attempt ultimately means capturing enough energy and diverting it for human needs. Societies that capture more energy and use it more efficiently have an advantage over other societies Therefore, these different societies are more advanced in an evolutionary sense.

3

Page 5: Energy Security of Cities in Korea

The Relationship b/w Energy & Civilization Tacit Social Assumption: Is this Valid?

C = k (energy) ? Questions on Civilization

What is civilization? What are criteria to judge the level of civiliza-

tion? How are energy and civilization related to

each other? The more energy, the better society?

4

1. Energy, Society and Sustainable Development

Page 6: Energy Security of Cities in Korea

• Since energy production, consumption and distribution occur in a certain social system’ network (Winner, 1982), the energy issue has to be dealt with from a perspective on energy system not just energy sources.

• The Energy system of a society is related to “social-technological-economic system.”

• Hard energy path vs. Soft energy path by Emory Lovins

• Unsustainable energy system vs. Sustainable energy system

Energy and Energy System

5

1. Energy, Society and Sustainable Development

Page 7: Energy Security of Cities in Korea

Energy and Sustainable Development

Social

Energy

Motor of economicactivities

Prerequisite ofHuman needs

EnvironmentalStress

Environmental

Economic Social

SustainableEnergy

Supply securityEfficiency

EquityDemocraticparticipation

Low carbonLow pollution

Environmental

Economic

6

1. Energy, Society and Sustainable Development

Page 8: Energy Security of Cities in Korea

<Centralized System> < Decentralized System >

7

1. Energy, Society and Sustainable Development

Page 9: Energy Security of Cities in Korea

8

<Source: Alanne and Saari, 2006, “Distributed energy generation and Sustainable development,” Renewables and Sustainable Energy, 10(6): 539-558>

1. Energy, Society and Sustainable Development

Page 10: Energy Security of Cities in Korea

9

<Decentralized System> < Distributed System >

<Source: Alanne and Saari, 2006, “Distributed energy generation and Sustainable development,” Renewables and Sustainable Energy, 10(6): 539-558>

1. Energy, Society and Sustainable Development

Page 11: Energy Security of Cities in Korea

<Source: Martinez 와 Ebenback, 2008, UNDP, 2005>

Basic Right for Energy & Energy Welfare

10

Energy is necessary for maintaining the quality of human life. Energy is directly relevant to welfare. “Basic right for energy”: Securing access to energy Energy supply does not need to increase continuously: HDI and Energy The amount of energy required to meet basic human needs has decreased.

1. Energy, Society and Sustainable Development

Page 12: Energy Security of Cities in Korea

Energy and Sustainable Development: An Evolving Agenda

11

<Source: Adil Najam and Cutler J. Cleveland, 2003, “Energy and SustainableDevelopment at Global Summits,” Environment, Development and Sustainability,Vol. 5: 117-138>

1. Energy, Society and Sustainable Development

Page 13: Energy Security of Cities in Korea

UK Stern Review (06)IEA(09)

World GDP 5~20% decrease annually with existing econ-

omy

Global energy con-sumption 40% in-

crease by 2030 (com-pared with 07)

Resource R/P(Oil 42yrs, Gas

60yrs, Coal 122yrs)BP statistical Re-

view(09)

Increase of GHG Emissions

Increase of Energy Consumption

Depletion of Resources

2. Energy and Sustainability

Simultaneous Crises

Oil price increase, deepened polarization, climate disaster increase More risks to poor people 12

Page 14: Energy Security of Cities in Korea

2. The Current Status ofEnergy Production & Consumption in Korea

Page 15: Energy Security of Cities in Korea

<Source: IEA, 2009>

Increasing Global Energy Consumption

14

2. The Current Status of Energy P & C in Korea

Page 16: Energy Security of Cities in Korea

<Source: BP, 2010>

R/P of Oil and Production & ConsumptionProduction(3820.5 MT)

Middle East 30.3%

Europe & Eurasia 22.4%

Africa 12.0%

Middle & South America 6.4%

North America 16.5%

Asia Pacific 10.0%

Middle East 8.7%

Europe & Eurasia 23.5%

Africa3.7%

Middle & South America 6.6%

North America 26.4%

Asia Pacific 31.0%Consumption(3882.1 MT)

(Unit: Year)

World 45.7 yrs

NorthAmerica

Middle & SouthAmerica

Europe &

Eurasia

Middle East

AfricaAsia

Pacific

15

2. The Current Status of Energy P & C in Korea

Page 17: Energy Security of Cities in Korea

2. The Current Status of Energy P & C in Korea

Per Capita Energy Consumption & R/P (07)<Source: BP, 2010>

16

Page 18: Energy Security of Cities in Korea

Exploitation

Import 96.5%[950Billion $]

Introduction

236.5MTOE[100%]

Primary Energy

55.0MTOE[23.3%]

Transformation•Loss

181.5M TOE[76.7%]

Final Energy

self-ex-

ploita-tion

Import line

Oil

Bituminous coal

LNG

Nuclear

AnthraciteNew& Renew-able

Industry57.6%

Transport20.4%

Residential•Commercial

19.8%

Others2.3%

Raw ma-teri-

al24.6%

Nuclear 35.5%Bituminous 37.3%LNG 19.4%Oil 4.5%Anthracite 1.1%Hydro 1.3%N& R 0.9%

4.2%

37.7%

Middle east(80.7%)

Qatar Oman In-donesia

Australia China Indonesia

Russia US Aus-tralia

China Australia Vietnam

Domestic prod. 3.5%

873MB

25.6MT

79.4MT

823T U

5.4MT

44.6%

14.7%

22.9%

13.0%

2.4%2.4%

Refining

Town gas

Heat

Elec-tricity

4,031B kWh

1.438MTOE

18.885 MTOE

2.8Mb/d

Uranium

Oil55%

Coal13%

Town gas10%

Elec.18%

Flow of E. Production & Consumption (07)

17

2. The Current Status of Energy P & C in Korea

Page 19: Energy Security of Cities in Korea

3. Energy Production and Consumption in Korea

The Trend of GDP Energy Consumption

18

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

0

50000

100000

150000

200000

250000

300000GDPPrimary EnergyFinal Energy

(Uni

t: B

illio

n W

on)

(Uni

t: T

hous

and

TOE)

Page 20: Energy Security of Cities in Korea

1990199119921993199419951996199719981999200020012002200320042005200620071.0

1.5

2.0

2.5

3.0

3.5

4.0

2.5

2.2

2.4

2.1

3.9

3.5

1.0

GDP1 인당 GDP1 차에너지 소비1 인당 1 차에너지 소비

최종에너지 소비1 인당 최종에너지 소비

전력 소비1 인당 전력 소비에너지원단위

GDP/CapitaPrimary energy consumptionPrimary energy consumption/capitaFinal energy consumptionFinal energy consumption/capita

3. Energy Production and Consumption in Korea

The Trend of GDP Energy Consumption

19

Electricity consumptionElectricity consumption/capitaEnergy intensity

Page 21: Energy Security of Cities in Korea

3. Energy Production and Consumption in Korea

GDP & Energy Consumption by growth rate

20

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

-10

-5

0

5

10

15

20

25

30

35

GDP

(gro

wth

rate

, %)

Page 22: Energy Security of Cities in Korea

Economic Growth, Energy, & Electricity

21

3. Energy Production and Consumption in Korea

GDP 1% Increase Energy Demand 0.98% Increase

GDP 1 % Increase Elect. Demand 0.98% Increase

Energy Demand g/r GDP g/r

GDP g/rElect. Demand g/r

<Source: Yong-Seok Yang, 2010>

Page 23: Energy Security of Cities in Korea

<Source: KEMCO, 2009>

Primary Energy Consumption by Sources

22

3. Energy Production and Consumption in Korea

Coal Oil Nuclear Other

Page 24: Energy Security of Cities in Korea

Energy Consumption and Value-added

23

3. Energy Production and Consumption in Korea

Energy Value-added Energy Value-added Energy Value-added

Others

Fabricated metal

Iron & Steel*Non-metallic*

Petro-chemi-cal*Paper & Publica-tion*Textile ApparelFood Tabacco

Energy-intensive Industry*

<Source: KEMCO, 2009>

Page 25: Energy Security of Cities in Korea

Rank Primary E.Cons.(MTOE)

Oil Cons.(MT)

Oil Import(MT)

Coal Cons.(MT)

Elect. Cons.(TWh)

1 US(2,340) US(942) US(573) China (1,314) US(4,052)2 China(1,956) China (363) Japan(206) US(573) China (2,676)

3 Russia(672) Japan(230) China (159) India(213) Japan(1,050)

4 India(595) India(129) India(122) Japan(125) Russia(872)5 Japan(514) Russia(126) Korea(118) Russia(94) Germany(591)6 Germany(331) Germany(113) Germany(106) Germany(86) India(558)7 Canada(269) Korea(108) Italy(94) Korea(60) Canada(547)8 France(264) Canada(103) France(81) Poland(58) France(479)9 Brazil(236) Brazil(100) Netherlands(58) Australia(56) Brazil(390)

10 Korea(222) Saudi(96) Taiwan(42) Korea(389)

전체 12,029 3,939 2,091 3,195 17,377

자료 IEA KEEI IEA KEEI IEA

Data: IEA, 2009, Key World Energy Statistics, KEEI, Yearbook of Energy Statistics, 2009 Note: Korea ranked 12th in terms of GDP in the same year, 2007.

Comparison among Countries (2007)

24

3. Energy Production and Consumption in Korea

Page 26: Energy Security of Cities in Korea

Sites

: under operation : under construction : under planning

Ulchin

Wolsung

KoriYoungk-wang

Total 20 reactors under operation 28 reactors in 2016

Nuclear-generated electricity accounted for 35%

22 more reactors are planed to be constructed by 2022

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

2011

2014

0

5000

10000

15000

20000

25000

30000

0

5

10

15

20

25

30시설용량(MW)원자로수

시설

용량

(MW

)

원자

로수

(기)

Transmission

The Status of Nuclear In Korea

25

3. Energy Production and Consumption in Korea

Capital areas con-sume 38%

Page 27: Energy Security of Cities in Korea

Note: World total nuclear capacity was 372GW in 2007 (total top 10 country’s was 324GW, total of others’ was 48GW).

OECD accounted for 84.3% electricity-generated by nuclear. Nuclear-generated electricity accounted for 13.8% of total electricity generation.Data IEA, 2009, Key World Energy Statistics; National Statistical Office, 2010.

rank 1 2 3 4 5 6 7 8 9 10

Installation capacity US France Japan Russia Ger-

many Korea Ukraine Canada UK Sweden

(GW) 106 63 49 22 20 18 13 13 11 9

(TWh, %) 29.9 16.7 9.1 6.3 5.7 4.9 3.4 3.1 2.8 2.5

Generation share France Ukraine Sweden Korea Japan Germany US UK Rus-

siaCanad

a

(%) 77.9 47.2 45.0 33.6 23.5 22.3 19.4 16.1 15.8 14.6

Density Korea Japan France Ger-many UK Ukraine Sweden US Rus-

siaCanad

a

(kW/km2) 1.70 1.27 1.14 0.56 0.41 0.22 0.20 0.10 0.01 0.01

4. Energy Crises

World Top 10 Nuclear Countries (2007)

26

Page 28: Energy Security of Cities in Korea

3. The Current Status ofGHG Emissions in Korea

Page 29: Energy Security of Cities in Korea

<Source : Won-Tae Kwon, 2007>

Global Mean Temperature Change (since 1906): +0.74℃

Global Mean Temperature Change (since 1912): +1.5℃

Proceeding of Climate Change in Korea4. Energy Crises

29

Korea Mean Temperature (deg C)

Page 30: Energy Security of Cities in Korea

<Source, Ministry of Economy and Knowledge, 2009> 30

4. Energy Crises

Waste

Agri.Indus-trial Process

Transforma-tion (35.5%)

Industry (31.3%)Transportation (19.8%)Res./Com. (11.3%)Pub./Others (0.9%)Leakage (1.2%)

CO2CH4

N2O

HFCsPFCs

SF6

(Unit: MTCO2)

GHG Emissions by Gas & by Sector (2006)

TotalEnergy

Industrial Process

Agri-culture Waste

Total Transf. Industry Transp. Res./Com.

Pub./Others

Leak-age

599.5 505.4 179.6 158.3 99.8 57.2 4.3 6.2 63.7 2.5 2.6

Total CO2 CH4 N2O HFCs PFCs SF6

599.5 505.4 179.6 158.3 99.8 57.2 4.3

Energy

Page 31: Energy Security of Cities in Korea

year   Primary Energy(1000TOE)Primary Final

1970 19,678 17,882

1980 43,911 37,597

1990 93,192 75,107

2000 192,887 149,852

2003 215,067 163,995

2005 228,622 170,854

2006 233,372 173,584

2030 300,400 207,500

4. Energy Crises

Basic National Plans for Energy & Elec.

• The 4th Electricity Demand & Supply Plan - Elect. Demand increase 2.1% in average ('08: 3,686→‘22: 500.1billion kWh) - 12 Nuclear reactors, 7 Coal-fired, 11 LNG 11 are planned to be constructed

more during ‘09~’22. - The share of nuclear capacity 33%, the share of generation 48% by 2022 31

<Energy Mix>

Unit: MTOE

CoalLNG

OilNew & Oth.Nuk

e

DSM

Page 32: Energy Security of Cities in Korea

Government The National AssemblyThe 1st Comprehensive Counter Plan for the Framework Convention on Climate Change(1999~2001)Act on Countermeasures Against Global warming (draft)

1999

2000

2001Act on Countermeasures for Prevention of Global Warm-ing (draft)Act on Countermeasures to reduce GHGs Emissions (draft)

The 2nd Comprehensive Counter Plan (2002~2004) 2002

2003

2004 Act on Countermeasures for Prevention of Global Warm-ing (draft)

The 3rd Comprehensive Counter Plan (2005~2007) 2005

2006

The 4th Comprehensive Counter Plan (a five-year plan) 2007

The Basic Act on Climate Change Countermea-sures (draft)The Comprehensive Plan on Combating Climate Change (08~12)

2008The Basic Act on Climate Change Countermeasures (draft)The Basic Act on Climate Change Response and GHGs Reduction Support (draft)

The Framework Act on Low-carbon, Green-growth (draft)Announcement of National mid-term reduction target

2009The Framework Act on Climate Change Countermea-sures (draft)Framework Act on Low Carbon Green Growth

2. GHG Emissions and Climate Actions in Korea

Climate Change-related Responses: Plans & Acts(2)

32

Page 33: Energy Security of Cities in Korea

Plans Sector/

project

Detail Note

The 1st Comprehen-sive Counter Plan(1999)

4 /36

1. Decreasing GHG Emissions (27)2. Applying the Flexibility Mechanism(1)3. Decreasing PFC, HFC, SF6 Emissions (1)4. Creating Infrastructure of Reducing GHG Emis-

sions (7)

• Korea’s first national plan on climate change• A Three-year plan

The 2nd Comprehen-sive Counter Plan (2002)

5 /84

1. Building Negotiation Capacity (6)2. Exploiting technologies for GHG Emissions Re-

duction (20)3. Enhancing GHG Reduction Measures (40)4. Kyoto Mechanism & Building Statistical Data-

base (8)5. Scaling up citizens' Participation and Coopera-

tion (1)

• Establishing Basic Frame-work

The 3rd Comprehen-sive Counter Plan (2005)

3 /91

1. Establishing foundation of the Implementation of Agreements(30)

2. Reducing Sectoral GHG emissions (45)3. Building Infrastructure for Adapting CC (16)

• Adding Adap-tation Measures

The 4th Comprehen-sive Counter Plan (2007)

5 /19

1. GHG Emissions Reduction (6)2. Climate Change Adaptation (3)3. Research and Development (4)4. Building Infrastructure (4)5. International Cooperation (2)

• Presidential transition pe-riod• A Five-year plan

The Compre-hensive Plan on Combat-ing Climate Change (2008)

4 /176

1. Developing Climate industry as a new economic driving force (48)

2. Improving the Quality of Life and the Environ-ment (106)

3. Contributing to the Global Efforts to Combat CC (12)

4. Key Policy Tools (10)

• “Low Car-bon, Green Growth” Vi-sion• A Five-year plan

Def

ensi

ve p

osit

ion

Rela

tive

ly

Proa

ctiv

e

33

Page 34: Energy Security of Cities in Korea

G20 in Toyako, Japan (July 2008) : The President, Lee Myung-bak announced a plan to build Korea’s national mid-term reduction targetby the end of 2009

International DimensionDomestic Dimension SignificanceTarget Setting

Early Mover Upgrading brand value of Nation and Business

Acting as a Mediator b/w Developed and Developing Countries

Past 60 yrs:‘Export target’Future 60 yrs:‘Reduction

Target’ Sharing Signal of People & Business

Upgrading the image of Korea

Key Indicator ofLow Carbon Green Growth

3. Korea’s GHG Emissions Reduction Target

Background of Establishing Mid-Term Target in Korea

G20 in L’Aquila, Italy (July 2009) : The President, Lee Myung-bak reannounced its’ plan for mid-term reduction target

August 2009: The Presidential Committee on Green Growth announcedthree scenarios of Korea’s reduction target

Inducing Transition of Development paradigm

Playing a Leading Role in Int’l Nego.

34

Page 35: Energy Security of Cities in Korea

3. Korea’s GHG Emissions Reduction Target

Three Scenarios of Mid-Term Target in Korea

S.

Reduction TargetSelection Criteria

Examples of Major Tools & MeasuresBased

on BAUBased on 2005

Vs. 1990

I -21% +8% +115%

Cost-effec-tive tech. & policy

• Expansion of green home & building• Distribution of highly efficient prod-ucts (eg. LED)• Redesign of transportation system• Innovation of industrial processes• Expansion of Nuclear & Renewables & partial Introduction of mart grid

II -27% Freeze +99%Sharing similar re-duction costs

• Elimination of F-gases• Dissemination of hybrid cars• Expansion of mixing rates of biofuel• Partial Introduction of CCS

III -30% -4% +91%

Developing countries’ maximum target re-quired

• Dissemination of next generation green cars (eg. Electric cars & fuel cell cars)• Dissemination of the most highly ef -ficient products• Strengthening introduction of CCS

35

Page 36: Energy Security of Cities in Korea

Gradual decrease of annual growth rate of total emis-sions Decreasing trend of CO2 intensity (tCO2/million Won) Increasing trend of per capita emissions resulting from

income increase and population decrease

3. Korea’s GHG Emissions Reduction Target

Prospect of Korea’s Mid-term GHG Emissions

(Source: PCGG)

Total emissions (MtCO2)CO2 Intensity (tCO2/Mwon)Per capita emission(tCO2)

36

Page 37: Energy Security of Cities in Korea

(Source: PCGG)

3. Korea’s GHG Emissions Reduction Target

Comparison of Three Targets

BAU

0%

Vs. 2000

Vs. BAU

(Unit: MtCO2)

Mid-term Target was determined in November 2011, and submitted to the UN in Jan. 2010

99%

37%

37

Page 38: Energy Security of Cities in Korea

Building Sector Transportation Sector• 31% reduction by ’20 compared with

BAU• Strengthening energy perfor-

mance standards: 50% reduction in heat and cooling from ‘12, pas-sive house level from ’17, manda-tory zero energy from ’25

• Energy consumption cap from ‘10• Energy management in energy in-

tensive building from ’11• Certificate of energy consumption

from ’12 in case of purchasing & rent

• 33~37% reduction from BAU by ‘20• Designating green transportation

zone; green vechicle first; sid-count point for mass transit

• Expansion of rail road in the share of total SOC (29% in ’09 50% in ’20)

• Over 65% sharing of mass transit

Industrial Sector Transformation Sector• Energy target setting program from

’10 (for energy intensive industries with more than 0.5 MTOE )

• Expansion of nuclear (41% of installa-tion by ’30, 59% of generation)

• Introduction of RPS in ’12• building Smart grid

3. Korea’s GHG Emissions Reduction Target

GHG Emission Mitigation Policies

(Source: PCGG)

38

Page 39: Energy Security of Cities in Korea

39

Korea’s GHG Management SystemSubmission to UNFCCC

Ministry of Env’t as a dele-gator

National GHG inven-tory

National Center for GHGInventory & Research

(ME)Inventory by sector

Energy/industrial pro-cesses (MKE) Waste (ME) Building & Transportation

(MLTM)Agriculture & forestry (MIFAFF)

Compa-nies to be managed

Min-istries in charge of

each sector

Submission of state-ments

Specified manage-

ment

Target Setting Pro-gram

3. Korea’s GHG Emissions Reduction Target

Non-industrial sector reduc-tion

Residen-tial

Transpor-tation Public

Page 40: Energy Security of Cities in Korea

4. Energy Production &Consumption by Region& by Class in Korea

Page 41: Energy Security of Cities in Korea

4. Energy Crises

Public Awareness of Nuclear in Korea (09)

Where will nuclear planted be sited?41

Acceptance of nuclear plantsin my community

Unit: %

Ne-ces-sityNu-clear safety

Waste safety Addi-tionalSame capac-ity

Acceptance in communi-ties Agree: 26.9% Disagree: 61.4%

Page 42: Energy Security of Cities in Korea

Income and Energy Poverty (1)

Income level 2003 2004 2005 2006 2007 2008

The 1st Quarter 15.7 14.9 15.1 14.5 14.0 15.0

The 2nd Quarter 6.9 6.6 7.0 6.8 6.6 7.0

The 3rd Quarter 5.1 5.1 5.1 5.1 4.9 5.4

The 4th Quarter 4.4 4.4 4.4 4.4 4.1 4.4

<Source: National Statistical Office, 2010 Modified> 42

4. Energy Crises

Page 43: Energy Security of Cities in Korea

(Unit: million Won) Under 100

100~Under 200

200~Under300

300~Under 400

400~Under500

500~Under 600

More than 600

E. Cons.(1000 ㎉ )

8,964 10,806 12,163 13,403 14,247 15,323 16,804

E. Costs (1000W) 815 982 1,104 1,248 1,341 1,473 1,630

Total (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

briquette 5.6 3.4 0.9 0.2 - - -

Oil 26.5 14.1 12.2 7.6 4.6 5.8 3.4

Gas 38.4 53.5 56.5 58.9 58.1 51.6 46.3

Electricity 25.1 25.2 24.6 24.5 24.6 24.5 24.3

Heat 3.4 3.0 5.5 8.7 12.7 18.1 25.9

Firewood 0.9 0.8 0.3 0.0 - - -Note: 1. LPG included in gas, Hot water included in heat, Energy costs exclude hot water and firewood. 2. Figures by energy source means expenditures for energy per 10 thousand won of income. Source: Ministry of Economy and Knowledge, 2008 43

4. Energy Crises

Income and Energy Poverty (2)

Page 44: Energy Security of Cities in Korea

Income and Energy Poverty (3)year Briquette

(W/1 briq.)Kerosene

(W/ℓ)Town gas(W/ ㎥ )

Electricity(W/kWh)

1990 185 191 285 69 1995 185 262 297 86 2000 185 545 461 95

2005 202 874 486 91 2008 283 1,239 526 98

Average an-nual price in-

crease rate(%)34.6 84.6 45.8 29.6

44

Expansion of energy welfare required Not just more supply of energy, but energy price system restructured, policy target group needs to be extended, en-ergy efficiency improvement required

4. Energy Crises

Page 45: Energy Security of Cities in Korea

4. Energy Crises

Separation of Producing sites and Consuming Sites and Transmission

45

• Environmental Pollution: Air, Wa-

ter, Noise

• Pleasant• Comfortable

Consuming Sites

Power PlantsLong distance trans-

mission required

• Transmission and distribution loss in Korea is 2%, respec-tively, in average,

• Long distance transmission cause high electricity loss High voltage transmission lines are preferred Resulting in high instal-lation costs

• High costs required for mainte-nance and repair

• Health threat to local residents along with transmission facilities: Increasing concerns about mi-croelectronic waves

• Invasion of property rights by compulsory purchase and land price down

• Deforestation and damage on landscape because of installation of transmission facilities.

Socio-Environmental Costs

Economic Costs

Page 46: Energy Security of Cities in Korea

HouseholdsCommercial, In-dustrial, Educa-

tionalAgricultural, Street

lights

By Use

- Differential basic rates- Progressive rates be-

yond basic level (High Voltage: 6 stages 10 times; Low voltage: 6 stages 11.7times)

- Differential rates by voltage

- Differential rates by voltage

- Differential rates by sea-son

- Differential rates by time- Selective rates by loads

- Differential rates by kinds of crops

Gap (grain production)Eul (raising seedling)Byung (crop production)

- Single charge for street lights

<Source: Korea Electricity Association, Yearbook of Electricity 2009>

No charges to general consumers by transmission distances

4. Energy Crises

The Current Electricity Price System

46

Page 47: Energy Security of Cities in Korea

4. Energy Crises

47

  (GWh) Electricity consumption (A) Electricity production (B) A/B (times) B/A*100(%)

Seoul 44,096 1,165 37.9 2.6

Busan 18,709 37,657 0.5 201.3

Daegu 13,265 114 116.4 0.9

Incheon 19,915 49,316 0.4 247.6

Gwangju 7,045 8 880.6 0.1

Daejeon 8,088 203 39.8 2.5

Ulsan 24,132 8,103 3.0 33.6

Gyeonggi 81,849 17,731 4.6 21.7

Gangwon 13,896 6,823 2.0 49.1

Chungbuk 17,375 917 18.9 5.3

Chungnam 30,428 107,216 0.3 352.4

Jeonbuk 15,928 1,023 15.6 6.4

Jeonnam 21,868 61,137 0.4 279.6

Gyeongbuk 37,165 76,122 0.5 204.8

Gyeongbuk 28,075 52,455 0.5 186.8

Jeju 3,183 2,363 1.3 74.2

Page 48: Energy Security of Cities in Korea

4. Energy Crises

48

Production & Consumption by Primary Energy Source

Seou

lBusa

nDae

gu

Inche

on

Gwangju

Daejeo

nUlsa

n

Gyeong

gi

Gangw

on

Chung

buk

Chung

nam

Jeonb

uk

Jeonn

am

Gyeong

buk

Gyeong

nam Jeju

0

10000

20000

30000

40000

50000Production Consumption

(Uni

t: 1

,000

TO

E)

Page 49: Energy Security of Cities in Korea

4. Energy Crises

49

Electricity Consumption by Sector

Seou

lBusa

nDae

gu

Inche

on

Gwangju

Daejeo

nUlsa

n

Gyeong

gi

Gangw

on

Chung

buk

Chung

nam

Jeonb

uk

Jeonn

am

Gyeong

buk

Gyeong

nam Jeju

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

Industry Transportation Res./Com Public/Oth.

(Uni

t: G

Wh)

Page 50: Energy Security of Cities in Korea

4. Energy Crises

50

Electricity Consumption by Sector

Seou

lBusa

nDae

gu

Inche

on

Gwangju

Daejeo

nUlsa

n

Gyeon

ggi

Gangw

on

Chung

buk

Chung

nam

Jeonb

uk

Jeonn

am

Gyeon

gbuk

Gyeon

gnam Jej

u0

500

1000

1500

2000

2500

3000

3500

4000

4500 4057.3

3594.6 3614.5 3673.1 3691.4 3824.5

3567.8 3857.1

2013.2 2024.4 2040.9 2173.7

1772.4 1815.6

2393.1

2033.2

National average: 3051.0

Page 51: Energy Security of Cities in Korea

4. Energy Crises

Transmission Facility Extension Plans

<Source: The 4th Electricity Demand & Supply Plan, 2008>

* The length of transmission circuit by 2022: 1.34times vs. 2007

* ( ) shows the number of transformer stations in each year.** The number of transformer substation in 2022: 1.37times vs. 2007.

(Unit: C-km (No.))

51

Voltage 2007(real) 2012 2017 2022

765kV 755(5) 1,004(7) 1,004(8) 1,004(8)

345kV 8,284(81) 9,585(98) 9,988(107) 9,998(107)

154kV 19,917(591) 24,401(699) 26,336(768) 27,715(811)

Total 28,956(677) 34,990(804) 37,328(883) 38,717(926)

Page 52: Energy Security of Cities in Korea

4. Energy Crises

Conflicts among Locals Contrast of interests between capital areas and non-capital - Large scale power plants and transmission lines for capital areas - Single electricity prices for household residents

2007 Whole country (A) Capital areas (B) Rate (B/A*100)

Elect. Cons. (GWh) 368,605 140,516 38.1

Capacity (MW) 67,246 14,765 22.0

52

Whole coun-tryCapital areas

Nu-clear

Bitu-mi-nous

An-thracite

LNG Petro HydroNew & re-new

Col-lec-tive

Page 53: Energy Security of Cities in Korea

5. Energy Alternatives forSustainable Korea

Page 54: Energy Security of Cities in Korea

<Source: The basic plan for national energy (2008)>

To improve energy intensity to the level of developed countries

Energy intensity

(toe/Thousand $)

0.335*

0.185Korea

OECD 0.183

To avoid energy supply system based on fossil fuel

The share ofNew &

Renewables

2.4%

11%

Level of energy tech : 60% → best

To accomplish the best level of energy technologies by 2030 To promote green energy industry by developing essential technology development

Self exploitation4.2%

33%

The share ofenergy poor

7.8%

0%

2007

2030

2007

2007

2030

2007

2030

2006

2016

The share ofNuclear capacity

2007

2030

Low E consumption/Low carbon soci-ety Fossil fuel free society

Green energy industry as growth en-gine

Energy independence and energy wel-fare

41%

26%

• Based on domestic consumption statistics • OECD is based on IEA statistics)

54

5. Energy Alternatives for Sustainable Society

Lee Government’s Energy Vision 2030

Page 55: Energy Security of Cities in Korea

Energy efficiency ImprovementRenewable Energy

Decentralized systemResidents’ participation

Change in land use Balance used of national land Local food and food mile Transformation of life style

5. Energy Alternatives for Sustainable Society

Sustainable Energy System and Society

55

Social

EnergyMotor of economicactivities

Prerequisite ofHuman needs

EnvironmentalStress

Environmental

Economic Social

SustainableEnergy

Supply securityEfficiency

EquityDemocraticparticipation

Low carbonLow pollution

Environmental

Economic

Page 56: Energy Security of Cities in Korea

Soft path energy:From centralized supply-ori-ented to decentralized demand management-oriented, Expansion of renewables

Energy democracy: Local residents participation in prod. & cons. decision

Energy justice:Local communities are respon-sible for costs and benefits of energy production

Revitalizing local econ-omy: Money required for energy production and consumption is circulating within a community

Securing energy secu-rity:Responding to peak oil and en-ergy resource depletion

5. Energy Alternatives for Sustainable Society

Expansion of Local Energy

56

Page 57: Energy Security of Cities in Korea

Life Style

Technol-ogyEn-ergy infra

LawsInsti-tutionBud-get

생활양식

기술에너지 인프라

제도

예산

5. Energy Alternatives for Sustainable Society

Factors Necessary to Be Considered

57

Page 58: Energy Security of Cities in Korea

생태적 조건climate, ground

ecological 생태적 조건maturity

technological

생태적 조건law, policy

institutional 생태적 조건awareness, participation

human

생태적 climate, ground

ecologicalawareness, participation

human

technological

institutional

ecology

technology institution

human

(A) (B) (C)

Hard energytechnology

Hard social impact

Hard social context

Soft energytechnology

Soft social impact

Soft social context

Substitution of social impact

Easing hard social context:Economic competitiveness

& social power of SET

Substitution of energy technology

from hard to soft

5. Energy Alternatives for Sustainable Society

Path of Energy System Transformation

58