Asset for the next generation, Gyeonggi-do Energy Vision 2030 in Korea

How is South Korea dealing with energy problems? With Gyeonggi-do Energy Vision 2030, the province hopes to set a successful example of energy policy

In one of our previous articles, we explored the state of renewable energy in Gyeonggi-do in-line with Korea’s energy vision. Today we’ll be focusing on Gyeonggi-do Energy Vision 2030 in-depth and looking at various policies implemented for the project. 

The basic goals of Gyeonggi-do.

To help achieve South Korea’s renewable energy goals, Gyeonggi-do Energy Vision 2030 was set as a comprehensive plan with the aim of realizing 70% self-reliance in electricity production, 20% production of electricity from renewable sources, and a 20% reduction in the province’s energy consumption.

Energy Paradigm Shift: Regional Energy Production Renaissance

Our current energy paradigm has many shortcomings. Human activity has had an immense influence on increasing Co2 output and climate change. In addition, fossil fuels, which we heavily depend on, are non-renewable and being depleted. On top of that, energy and fuel transmission over long distances comes with additional costs, waste, and negative impacts on the environment. 

To combat these negative aspects, there have been initiatives to decentralize energy production and supply systems, shifting toward local energy production. Gyeonggi-do is pursuing a prosumer energy model with the aim of expanding the use of safe and renewable energy sources while managing local energy demand. 

What are the benefits of reliance on local energy production?

1. Reliable energy supply and safe energy: Flexibility with regards to changes in energy demand, better recovery from shocks after tragic and catastrophic events that can affect energy supplies and prices, energy portfolio diversification, and reduced risk of large-scale power outages due to system failures.
2. Environmental advantages: Efficiency in supplying energy, reduce energy waste, reduced greenhouse gas emissions, prevent depletion of natural resources, and increase value of locally available resources.
3. Economic advantages: Downscale funds invested in high capacity transmission lines, flexibility to respond to peak demand, improve local economies through more local suppliers and options for consumers, and new job opportunities thanks to new businesses.
4. Social advantages: Promote a pro-sumer model in energy production, shift consumer attitudes towards energy resources and use, empower local communities to adopt a democratic approach to energy issues, and promote innovation in renewable energy sectors.

Energy paradigm should be changed from non-renewable sources to safe and renewable sources

Energy Transition Is Possible 

Energy transition refers to a gradual change from fossil fuel consumption to green energy sources. One of its best indicators is the reduction of Co2 emissions. 

Germany has implemented an energy transition project and set a successful example. The policy in question, known as “Energiewende,” set clear goals for the country’s energy production. The country's goal was to realize a low-carbon and nuclear-free economy.

In this case, the focus was put on the electricity sector. By supporting the establishment of wind and solar power plants, Germany managed to reduce its reliance on coal, which used to be the country’s leading energy source. 

It’s important to note that active participation by citizens has been instrumental in making this shift happen. And it has, in return, benefited society; by the year 2011, the renewable energy sector created twice as many job opportunities as the fossil fuel sector.

The case of Germany proves that, while the energy transition might be an ambitious goal, it is an achievable plan with public participation. 

The global demand for energy transition is growing. Currently, there are a number of similar movements throughout the world that hope to achieve similar results. 

Energy Issues That Affect Gyeonggi-do

There are a number of energy-related issues affecting Gyeonggi-do that the province seeks to tackle with the Energy Vision 2030 policies. 

1. Gyeonggi-do has the highest electricity consumption rate in South Korea, accounting for up to 21% of the country’s total consumption.

2. Gyeonggi-do produces only 5% of all electricity in South Korea; it’s electricity production independence rate is as low as 29%.

3. The province has the third-highest rate of rising electricity consumption in South Korea.

4. Gyeonggi-do has the highest green gas emissions in South Korea, accounting for almost 15% of South Korea’s total emissions. 

Since South Korea’s energy policies have shifted, the Gyeonggi Provincial Government, provincial residents, and businesses have come together to create positive change. 

From Crisis to Opportunity, Gyeonggi at the Center of South Korea’s Energy Transition

Gyeonggi-do will be the main bastion for decentralized electricity production for the Korean Capital Region (Seoul, Incheon, and Gyeonggi-do). The province has the potential to tap into a variety of renewable energy types and to be a testbed for new and emerging energy industries.

In addition, the fact that the region is a heavy energy consumer means that there is a possibility to manage the energy demands on a local level and create significant results. 

By following through with Gyeonggi-do Energy Vision 2030, the province hopes to set a successful example that can be followed throughout the country. 

Gyeonggido has potential to manage the energy demands

Gyeonggi-do Energy Vision and Strategy  

Gyeonggi-do has 3 main strategies for innovative change:

1. Innovative approaches to energy efficiency led by residents and businesses. 

2. Innovations in clean and safe energy production.

3. Innovations in new energy industries in confluence with ICT industries.

These strategies encompass various policies that ensure Gyeonggi-do’s energy transition.

LED Lighting in Public Buildings and Apartments

LED lights are much more efficient than incandescent or fluorescent lights. The switch to LED lighting will create a win-win situation for residents and businesses and does not require provincial funds; consumers save electricity costs while electricity consumption is significantly reduced. 

Energy Independent Government Buildings

From 2020, all new government buildings have to be zero-energy buildings. A zero-energy building (i.e. net zero-energy building) is built to be energy efficient, minimize waste, and produce energy on-site.

Green Remodeling and Eco-Industrial Parks

The province is planning to upgrade energy use trends among businesses. Some of the strategies include:

l  ICT-based energy management systems in business complexes 

l  New success models for SME energy consulting

l  Green Credit business cooperation between conglomerates and SMEs; conglomerates are incentivized to help SMEs reduce energy waste and emissions

l  Green remodeling of business complexes and support for eco-industrial parks

Energy Consulting and Follow-up Management

Gyeonggi-do will provide a variety of services to inform the public about and help with energy issues, including household energy diagnostics, energy marketplaces, and energy ‘happiness’ markets. 

Similarly, the province provides energy consulting services to shopping districts, buildings, and others. The aim is to inform, educate, and support so as to foster energy efficiency as well as energy transition at a grassroots level.

1GW Solar Energy Project

The aim of this project is to achieve 1GW solar energy production. Investment from renewable portfolio standards (RPS) businesses and public-private sector sources will be funneled into the project. Also, there will be active government participation to lead this ambitious project; the roofs and sites of government buildings will be surveyed for the installation of solar panels. 

To incentivize changes, feed-in tariffs (FIT) will be extended to a scale of 50MW. 

Resident cooperation will be a defining factor in the project’s success with 100 locations having been designated for Citizen Sunlight Power Plants (read more on Ansan City’s citizen’s solar co-op here).

Profit-Sharing Energy Towns

To enhance the resident awareness about the social benefits of renewable energy, a public profit-sharing model will be extended. As an example of a profit-sharing cooperative, the Sihwa energy cluster has been designated as an ‘environment-friendly energy town;’ In addition to the previous tidal power plant, the cluster will feature a floating solar energy farm.

Within this model, regions of Gyeonggi-do that are not connected to city gas services will be prioritized in the transition to energy independence.

Pangyo Innovation Hub

In Pangyo, South Korea’s Silicon Valley, the IoT, energy, fintech, and other sectors will come together to create innovative flagship projects.

Energy Clusters in Northern Gyeonggi

To develop northern Gyeonggi, the province is planning to create renewable energy production and storage plants in the area. The sites designated for the project include areas such as those returned by the United States military, military camps, restricted areas that have fallen out of use, DMZ sites, and more. 

Energy Independent Smart Cities

Gyeonggi-do plans to develop smart cities that bring together innovative energy industries and convergence technologies. These projects will match each area’s demands and characteristics using smart technologies such as smart power grids.

Energy ICT Convergence ‘Hidden Champion’ Business Support

To manage the demands of a changing energy environment, new businesses that use big data and IoT will emerge. Gyeonggi-do will provide incubation programs that target the practical convergence of ICT and energy technologies. 

Gyeonggi-do Energy Governance and Infrastructure

To lead the energy vision and provide grounds for energy governance, the province has invested in infrastructural development including:

l  Foundation of Gyeonggi-do energy department

l  Opening the Gyeonggi-do energy center to follow up on the Energy Vision 2030, provide education, PR, etc.

l  Create a public-private governance model to implement the policies 

l  Create an energy fund of KRW 50 billion won

In Korea, energy transition is a critical next step. The transition requires time and the participation of the public, businesses, and government. Gyeonggi-do Energy Vision 2030 foresees a future in which all sectors benefit from their cooperation and investment in green and renewable energies.