H. Yoo
Research expert covering South Korea
Electricity market in South Korea - Statistics & Facts
South Korea is heavily dependent on imports for sources of energy, making energy security high on the list of government priorities. Despite efforts towards liberalization, the domestic electricity market is dominated by Korea Electric Power Corporation (KEPCO), a public corporation responsible for generating, transmitting, and distributing electrical power in South Korea, among other roles. Among its many subsidiaries, Korea Hydro & Nuclear Power Co., Ltd. (KHNP) is the only nuclear power plant operator in South Korea. It is also responsible for around 30 percent of the country’s total power generation capacity, most of which comes from nuclear power.
Diversification of South Korea’s electricity market
The total revenue of the electricity transmission and distribution market in South Korea is forecast to exceed five billion U.S. dollars. However, the rise in energy costs has once again highlighted the longstanding need for diversification in the energy sector in regards to its sources. Electrification, which focuses on replacing technologies that rely on fossil fuels with ones that use electricity, and the decarbonization of supply chains have been key strategies for such diversification and the reduction of emissions. Out of the different energy sources, coal generated the largest share of electric power in South Korea. Nevertheless, in terms of cost-effectiveness, nuclear power has been a cheaper source than coal on average.Renewable energy in South Korea
Alongside electrification, there has been an increased focus on renewable energy, with ambitious targets set by the South Korean government for wind and solar power. This sentiment is also reflected among the public, as more than 60 percent of respondents in Seoul were willing to install renewable energy infrastructure for household use. This, and the need for greater energy storage are major areas that are expected to influence the South Korean electricity market in the future.
