New Energy Policies

Knowledge Economy Ministry to strive for boosting energy self-sufficiency and saving this year

(from far right) Vice Minister for Trade and Energy Park Young-june explains the government’s energy policies at the New Year’s gathering of those in the energy business community.;Shin Heon-cheol, chair of the Organizing Committee of the 22nd World Energy Congress (WEC), give a speech.; Kim Ki-chun, chairman of Korea Energy Foundation, speaks at the event.; GS Caltex Chairman Hur Dong-soo proposes a toast at the gathering.
Vice Minister Park Young-joon of the Ministry of Knowledge Economy said the year 2010 will be remembered as the year that the Korean energy industry formalized its entry into the world energy stage making itself as a new growth engine for Korea.
During a New Year’s gathering for the energy industry held on Feb. 8, at the Grand Ballroom of Inter-Continental Hotel in southern Seoul, the vice minister said exports of new and recycled energy including wind and solar power amounted to $4.7 billion last year, up over two times from those in the previous year of $2.4 billion.
Park went on to say that the overseas energy development sector also made a remarkable growth last year with the take over of Dana Co., a British oil exploration firm, able to achieve the targets for the energy self-sufficiency rate of 10 percent in oil and gas and 27 percent in strategic minerals.
The vice minister also unveiled the three objectives in the energy policy sector and targets, asking for the help of the energy industry and participation in the efforts to achieve the targets.
First, he said in order to create jobs and generate economic growth, we have to turn the energy industry into a growth engine. In order to be able to export the second and third domestic nuclear power plants, the country needs to streamline the nuclear power export system, foster 50 firms in the sector of new and recycled energy to be global star enterprises and commercialize the intelligent power grid.
Second, the fear for an excessive dependence on foreign energy resources should be resolved. In order to take care of the problem, we ought to boost substantially the self-sufficiency rate of energy resources development has to be raised much higher. For gas and oil, the rate was hiked to 13 percent in 2010 from 10 percent in 2009; for strategic minerals, it was raised to 29 percent in 2010 from 27 percent in 2009; for lithium and other strategic minerals, it was jumped to 10 percent in 2010 from 5.5 percent in 2009.
Park said the power plants should be built without a hitch to secure stable energy supply base and sign new LNG import contracts.
Third, as global leader of green growth, we ought to jointly participate in the global efforts to cope with the climate change and take the opportunity as an occasion to accelerate the economic growth,he stressed.
In particular, in the area of the green industry, we make models for companionship in growth between SMEs and large companies through green credit, and green partnership.
In the area of the emission rights trading system, the government plans to listen to what the industry have to say on the matter and readjust timing and burden levels. Park also noted that the government will energy prices will be set in a manner to reduce save energy consumption in mid-to-long term perspectives. In particular, the electricity rate will be set based on a roadmap so that the market can have time to cope with the new energy prices.
The reception got started with President Kim Ki-choon, chairman of the Energy Foundation giving the opening speech followed by Vice Minister Kim Young-joon’s New Year speech. The participants freely mingled with one another at a reception lasting for about half an hour. nw

Major participants at the New Year reception for President Kim Shin-jong of the Korea Resources Corp., Chairman Yeom Myung-chun of Korea Power Exchange, President Kim Ki-hak of KEPCO Nuclear Fuel Co.; President Chang Do-soo of Korea South-East Power Co., the energy industry included Deputy Minister for Energy Kim Jung-kwan,; President Kim Jong-shin, of Korea Hydro & Nuclear Power Co.; Korea Nuclear Energy Promotion Agency Chairman Lee Jae-hwan,; President Kwon Oh-gap, of Hyundai Oilbank,; President Lee Gil-gu of East-West Power Co.; Lee Jae-hong, director of nuclear policy at the MKE,; President Min Keh-hong of Korea Radioactive Waste Management Corp., and S-Oil CEO Ahmed A. Subaey, among others.