According to the Korea Ministry of Trade, Industry and Energy press release on April 24, 2023, Trade, Industry and Energy Minister Lee Chang-yang chaired a consultation session on April 19 at the Government Complex Seoul on measures for central and regional energy efficiency innovation.
The session was held to discuss measures for effectively spreading the energy conservation efforts nationwide through a cooperative system among local governments following the pan-ministerial energy efficiency innovation consultation meeting held on March 14.
During the session, Minister Lee announced that the Ministry aims to: 1) Spread energy conservation campaign to every local region, 2) spread suitable policies for industrial complexes, large buildings, and farming and fishing villages, and 3) strengthen community-level efforts for energy efficiency innovation for vulnerable groups.
Specifically, each local government will establish respective plans for the “Save 1kWh a Day” campaign and use all viable means for implementation, including public transportation, local festivals and social media.
Another focus will be on raising public awareness and inducing people’s behavioral change through promotion of MOTIE’s energy cashback system and educational content.
Efficiency innovation measures will differ by region depending on the local conditions and characteristics.
The Seoul Capital Area and other major metropolitan areas will introduce energy intensity target systems and seek collaboration with public energy institutions to find efficiency improvement solutions. For Jeonnam, Chungnam, Ulsan, Gangwon and Chungbuk regions, where 80 percent of Korea’s energy intensive companies are located, efforts will go toward inducing companies’ investment in energy efficiency.
Across regions like Gyeongbuk, Gyeongnam, Jeonbuk, Jeju (regions highly populated with farmers and fishermen) and Daejeon (where Government Complex Sejong is located), the Ministry of Agriculture, Food and Rural Affairs (MAFRA), Ministry of Oceans and Fisheries (MOF) and other relevant ministries will provide information and guidance on ministry-specific energy efficiency assistance programs.
Energy welfare assistance will also be bolstered for vulnerable groups. A smooth and active cooperation channel between central and local governments and relevant agencies will be operated to reinforce welfare assistance so as to help all eligible groups receive necessary support, such as kerosene and LPG heating cost assistance, energy vouchers, energy efficiency improvement programs for the low-income bracket, and promotion and information guidance.
Small business owners’ and “Ppuri” businesses’ water source heat pump replacements will be supported for lodging and bathhouse facilities, while Korea Electric Power Corporation (KEPCO) will roll out programs assisting refrigerator door installations at food stores and efficiency device replacements for Ppuri businesses. Public energy institutions’ regional branches will strengthen collaboration with local governments to predict the size of demand for these programs.
Meanwhile, MOTIE plans to publicly disclose the evaluation results of local governments’ energy use rationalization plan to boost local fulfillment efforts, and consult with relevant ministries to include energy saving efforts and performance criteria in the joint assessments of local governments. An energy data platform for measuring real-time power consumption will be utilized in energy conservation performance assessments beginning in the second half of the year.
In his opening message, Minister Lee stated that “the global energy crisis caused by last year’s Russia-Ukraine war has heavily impacted the overall domestic economy, resulting in large trade deficit, high inflation and high exchange rates,” and emphasized that “thanks to full-out measures to raise the efficiency of the energy consumption system and raise public awareness, Korea’s annual energy consumption and energy intensity both improved last year.”
The Minister remarked that “as post-COVID economy and daily life activities recovered, energy consumption rose 6.2 percent in 2021 year-on-year, but last year’s energy consumption actually dropped 1.5 percent even as the economy continued to recover.” He noted that the energy intensity rather went into reverse from “1.3 percent deterioration” in 2021 to an all-time high efficiency level and posting “2.5 percent improvement” in 2022, and attributed the efficiency enhancement to full-scale energy saving efforts, realistic energy charges and effective price cues.
He highlighted that “amid a visibly improving energy consumption structure, more efforts for energy efficiency innovation are needed for Korea to fundamentally shift to a high-efficiency economic and social structure.”
