Energy Consumption Status in Korea

Energy Efficiency Target & Policy Direction

Sectoral Energy Efficiency Policies

Energy Consumption Status in Korea

1 -1

Energy Consumption Status (1)

High dependence on external sources of energy (96.5%)

Very limited supplies of indigenous natural resources Substantial increase in energy demand with the high economic growth
(world's 10th largest energy & 8th oil consuming country)

Cost of energy imports is $172.5 billion in 2011 (32.9% of total imports)

(crude oil $100.8 billion, LNG $24 billion, coal $18.5 billion)

Energy imports (based on total imports)

crude oil imports (million bbl) hundred million $

1,725 1,415
(32.5%) (32.9%)

$95.5 billion (exports of car + semiconductor)

$172.5 billion (energy)

1,217
(28.6%)

950
(26.6%)

912
(28.2%)

874
07

865
08

835
09

872
10

927
11(p)

1 -2

Energy consumption status (2)

Status of energy consumption & CO2 emissions by sector

Primary & final energy consumption

LNG Nuclear Renewables, etc Oil Coal Energy

CO2 emissions

Industrial process

(Mtoe)

Building 19.2%

Agriculture, waste

(Mt CO2)

262.6 192.9
1.8% 14.1%

607.6
etc 2.3%

Residential/ Commercial 11.2% Transport 16.0% Etc 1.2%

602.3 513.7

2.8%
12.2% 16.4%

93.2
2.6% 14.2% 3.2% 53.8%

9.8%

Industry 59.4%
39.7% 80.7% 84.6% 84.9%

Power generation 44.3%

52.0%

Transport 19.1%
28.9%
22.2% 11.3% 9.7% 5.7% 2008 9.3% 5.8% 2009

Industry 27.3%

26.2% 1990 2000 2010

Energy consumption by sector

8.0% 2000

1 -3

Energy Consumption Status (3)

Constant decrease of oil dependency by diversifying energy sources since 1980s

Rate of fossil fuels : 85.6%(80) 88.3%(00) 85.0%(10) 60.7%(30)

1980

61.1 52.0 39.7

Oil
28.9 22.2

22.5

7.6

2.0 6.8

2000

9.8

14.1

1.8

2010
(263 million toe)

12.2

16.4

2.8

Coal

Nuclear

LNG

NRE, etc

Rate of oil consumption by sector(09, 778million bbl)

55.9% (Feedstocks:42.5%)

Industry

Transport

33.2%

Residential/ Conversion Commercial 3.4% 7.6%

OECD Average
(09, IEA)

37.2

19.7

11.3

24.2

7.6

Energy Efficiency Target & Policy Direction

2 -1

Long-term target of energy efficiency

Improve energy-intensity to 0.185(toe/1,000$) through national energy master plan(08~30) Energy demand and target(30)
544.0
mil. toe(toe/1000$)

Improve the national energy efficiency to 46% by 2030

Keep the 07s energy efficiency

23.5% 11.3%
299.3 236.5 203.5
(0.367) (0.335)

398.4
368.8

27.8%
282.0
(0.256)

46%
Target

265.1
(01297)

288.0
(0.233)

300.4
(0.185)

Korea have low potential of energy saving since energy-intensive industrial structure

Need stronger measures for transition into low-energy economy

2 -2

Promotion System of Energy Efficiency Policies

Target

Improving National Energy Efficiency (annual 2.5% by 2030)

Achieving GHGs reduction target
(30% from BAU)

Sectoral measures

Industry

Transport

Building

Public

Building Infra.

Smart Grid, ESCO

R&D, Energy Prices, Public Awareness

5

Sectoral Energy Efficiency Policies

3 -1

Industrial Sector (1)

Implementation of GERC(GHG-Energy Reduction Committment)

GERC(GHG-Energy Reduction Committment) for energy-intensive companies

total emission 608million ton(09) 463 GERC companies ('12)

366unit

Non-GER C 23%

GERC 67%

47 unit
80%
Industry

50 unit
10%
Agriculture, livestock & waste

10%
Building

Managing 67% of GHG emissions & 64.9% of energy consumption in Korea

GERC companies
2012 : over 25,000 tCO2 or 100TJ

2014 : over 15,000 tCO2 or 80TJ

6

3 -2

Industrial Sector (2)

Introduction of Green Credit between large and small companies

Green Credit

Win-Win cooperation between large and small companies SMEs receive technology and capital from large companies and large companies can have some portion of reduction results from SMEs

Reduction potential

emissions Target management Green Credit

Self
Large companies
Technology & capital

Small companies

Target emissions reduction the results

Transform

Results Support capital, technology

Large companies

Small companies

Large companies

Small companies
7

3 -3

Building Sector

Energy Labeling Program

Promoting applied buildings and mandating an implementation by phase

*New office buildings('10~) Existing house and office building('12) All buildings('13)

Mandatory "Energy -Efficiency Mark" at documents related real-state(13)

GHG-Energy Reduction Commitment

GERC is introduced and applied for energy-intensive buildings Full-implementation will be started for 47 energy-intensive buildings from 2012

Energy Efficiency Resource Standard (EERS)

Impose a energy-saving target on energy suppliers and offer incentives by performance('12) Promoting the energy efficiency investment of energy suppliers for house and office buildings cannot be managed right

3 -4

Transport Sector
Improvement of fuel economy test method : change the method to reflect real-world fuel economy Development of methods for PHEV measurement and mark the efficiency for EV
* PHEV: Plug in Hybrid Electric Vehicle, EV: Electric Vehicle

Labeling & fuel economy

Tire labeling

Introduction of tire labeling (5 grade) for promoting the high-efficiency tire

- temporarily certification from 2011 and obligate the passenger car tire from 2012 - gradually expand to passenger car(12), light truck('13)

Promotion of green car

Promotion of green car by roadmap and strategy(10)

- Product 1.2 million green cars in Korea and export 0.9 million green cars (15) - Hold 21% of domestic car market (15)

Fuel economy for heavy-duty vehicles

Establishment of new fuel economy program for heavy-duty vehicles('15)

- Implementation : Japan (15) US(14) China('15)

3 -5

Equipment & Appliance Sector

Implementation status of 3 energy efficiency management program

Energy efficiency labeling program Implementation(92) 35 items including refrigerator etc High efficiency certification program
Implementation(96)

e-standby program
Implementation(99)

41 items including LED etc

22 items including Settop box etc

Main performances of energy efficiency labeling program

Reduce power consumption Reduce power consumption

60% per year

[KWh/]

21% per year

[Wh/kg]

1.75 0.719
1996 2010

15 11
Refrigerator 2004 2010 Electromotor

Certification of high efficiency equipment (support market entry)

energy efficiency labeling program ( support the market consolidation)

lowest energy efficiency standard ( throw out the lowenergy efficiency appliances)

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[Reference]

KEMCOs Major Activities

Creation of the Carbon Market GHG DB Management Registration and Certification of GHG Reduction Certification of CDM projects

Building Certification Program Building Code GHG-Energy Reduction Commitment

Building Sector

Climate Change
Deployment of 1mil. Green Homes Subsidy Program of NRE Deployment Public Obligation for NRE Financial Assisstance for NRE Renewable Portfolio Standard Certification of NRE equipment Regional NRE Development

Energy Labeling Program High-Efficiency Certification Program E-Standby Program Energy Welfare Program

GHG Mitigation HighNew & Energy Efficiency Renewalbe Efficiency and Saving Equipment Energy NRE Deployment Education, PR, IC Transport Sector Industrial Sector

Korea Green Energy Show

Green Energy Exhibition Center Early Education

Training for technical engineer Mmultilateral and bilateral international cooperation

Average Fuel Economy Program Fuel Efficiency Labeling Deployment of Greencar

GHG-Energy Reduction Commitment Operation of Green Credit Financial Assistance for Energy Saving Facilities Certification of Energy Management Systems
11

Save energy, Save earth

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