Energy system transition, what are the essential policy tasks?

 

Energy system

The Korea Energy Economics Institute (President Cho Yong-Seong) has published a policy brief, 'The Direction of the Korean Version of the Green New Deal: Diagnosis and Recommendations', which contains diagnosis and policy suggestions for the Korean version of the Green New Deal.

In this brief, the role of the Korean version of the Green New Deal in terms of long-term energy system transition that our society should aim for is highlighted, and policy tasks are proposed to preemptively respond to major obstacles in the process of system transition.

In particular, the 'Green Energy Sector Coupling' was presented as a vision for a long-term energy system with the basic directions of decarbonization, decentralization, digitalization, deregulation, and energy democratization. The green energy integration system is a system in which energy sources (gas, hydrogen, heat, etc.) are integrated based on renewable energy power, and energy consumption sectors such as industry, buildings, and transportation are linked with each other through this.

To successfully combine the Korean version of the Green New Deal with the long-term energy system transition, the brief is to â–³reinforce the power grid and upgrade the management system and improve the power wholesale market system â–³promote private investment through rational and step-by-step regulatory improvement â–³Support for strengthening the capacity to reduce greenhouse gas emissions It proposed policy tasks such as strengthening the role and participation of local governments and residents and expanding convergence and complex projects to enhance policy effectiveness and public perception.

The Korean version of the Green New Deal, the right direction?

Similar to other major countries, the Korean version of the Green New Deal is being promoted to overcome the economic crisis caused by COVID-19 and use it as an opportunity to accelerate the transition to a low-carbon, eco-friendly economy.

Major countries such as US President-elect Biden's pledge to invest $2 trillion in clean energy focusing on clean energy, the EU's Green Deal, and Europe's recovery plan are promoting Green New Deal policies in consideration of their respective social and economic conditions.

In line with this, the Korean version of the Green New Deal, announced in July, aims to achieve a net-zero society by promoting green conversion of living infrastructure and energy and green industry innovation and designated five major tasks to be intensively supported. The five major tasks that include convergence tasks with the Digital New Deal are â–³Green Smart School â–³Smart Green Industrial Complex â–³Green Remodeling â–³Green Energy â–³Eco-friendly Future Mobility.

In the Korean version of the Green New Deal, a total of 32.5 trillion won (19.6 trillion won) by 2022 and a total of 73.4 trillion won (42.7 trillion won) by 2025 will be invested, and 659,000 jobs will be created by 2025. It is expected.

The brief stated that it is desirable to evolve the Korean version of the Green New Deal, which can be said to be a mid-term implementation plan centered on specific business tasks, to more effectively reflect our unique circumstances.

Specifically, it is necessary to highlight the difference and effectiveness compared to existing projects by reflecting the vision of the structural transformation of the energy system to overcome the climate crisis and suggesting alternatives to solve related obstacles.

In addition, the direction of deregulation and energy democratization needs to be pursued together in consideration of domestic specificities such as decarbonization, decentralization, and digitalization, which are international trends in energy conversion, entry regulation, and rate regulation in the electricity market, and weak citizen participation.

Brief, in consideration of domestic conditions such as a single power system and an industrial structure centered on industries that consume a lot of energy, suggested that the Korean version of the Green New Deal be converted into a reliable and sustainable green energy integrated system in the mid-to-long-term.

When the integrated green energy system is implemented, renewable energy power is converted and utilized into other energy sources such as hydrogen and heat, and electric vehicle batteries are used in the power system and final energy consumption sector to improve energy system stability and decarbonize the greenhouse gas emission reduction sector. is expected to contribute to
The Korean version of the Green New Deal, the right direction?

Similar to other major countries, the Korean version of the Green New Deal is being promoted to overcome the economic crisis caused by COVID-19 and use it as an opportunity to accelerate the transition to a low-carbon, eco-friendly economy.

Major countries such as US President-elect Biden's pledge to invest $2 trillion in clean energy focusing on clean energy, the EU's Green Deal, and Europe's recovery plan are promoting Green New Deal policies in consideration of their respective social and economic conditions.

In line with this, the Korean version of the Green New Deal, announced in July, aims to achieve a net-zero society by promoting green conversion of living infrastructure and energy and green industry innovation and designated five major tasks to be intensively supported. The five major tasks that include convergence tasks with the Digital New Deal are â–³Green Smart School â–³Smart Green Industrial Complex â–³Green Remodeling â–³Green Energy â–³Eco-friendly Future Mobility.
In the Korean version of the Green New Deal, a total of 32.5 trillion won (19.6 trillion won) by 2022 and a total of 73.4 trillion won (42.7 trillion won) by 2025 will be invested, and 659,000 jobs will be created by 2025. It is expected.

The brief stated that it is desirable to evolve the Korean version of the Green New Deal, which can be said to be a mid-term implementation plan centered on specific business tasks, to more effectively reflect our unique circumstances.

Specifically, it is necessary to highlight the difference and effectiveness compared to existing projects by reflecting the vision of the structural transformation of the energy system to overcome the climate crisis and suggesting alternatives to solve related obstacles.

In addition, the direction of deregulation and energy democratization needs to be pursued together in consideration of domestic specificities such as decarbonization, decentralization, and digitalization, which are international trends in energy conversion, entry regulation, and rate regulation in the electricity market, and weak citizen participation.

Brief, in consideration of domestic conditions such as a single power system and an industrial structure centered on industries that consume a lot of energy, suggested that the Korean version of the Green New Deal be converted into a reliable and sustainable green energy integrated system in the mid-to-long-term.

When the integrated green energy system is implemented, renewable energy power is converted and utilized into other energy sources such as hydrogen and heat, and electric vehicle batteries are used in the power system and final energy consumption sector to improve energy system stability and decarbonize the greenhouse gas emission reduction sector. is expected to contribute to

Five policy tasks must be reflected in detail

The brief presented policy tasks that should be reflected more specifically in the Korean version of the Green New Deal in order to preemptively respond to the obstacles expected in the process of converting the energy system.

The first is to strengthen the stability of the power system. In preparation for the rapid expansion of volatile renewable energies such as solar and wind power, it is necessary to strengthen the stability of the power system through preemptive network investment, improvement of power market systems such as the opening of real-time and auxiliary service markets, and establishment of next-generation power grid management infrastructure.

The second is the decarbonization of the greenhouse gas reduction industry. In order to achieve carbon neutrality, it is to prepare decarbonization strategies for energy-intensive industries such as steel, petrochemicals, and cement, as well as industries to reduce greenhouse gas emissions such as cargo transportation and heating and to support the development of next-generation greenhouse gas reduction technologies.

The third is a step-by-step regulatory improvement to promote private investment. In order to maximize the policy effect of government and public sector fiscal investment, it is necessary to promote voluntary investment and participation of the private sector through step-by-step regulatory improvement.

Considering rationality and acceptability, it is necessary to systematize new and renewable energy location regulation standards and to simplify the licensing and permit procedures for projects that meet the standards through the 'One-Stop-Shop' system. In addition, it is necessary to create an environment where private investment and participation can be expanded in various new energy business models centered on distributed resources (DER) through the gradual easing of regulations on entry into the electricity retail market and rate regulation.

The fourth is strengthening the role and participation of local governments and local residents. It is necessary to strengthen the administrative power and budgetary authority of local governments so that local governments and local residents directly participate in creating and disseminating a successful model for an eco-friendly community specializing in local areas and realizing practical regional decentralization. The transition from the existing individual project unit budget support method to the comprehensive subsidy method must ensure autonomy in the development of regionally specialized projects and the authority to execute the budget.

Lastly, the expansion of convergence-type businesses. Rather than focusing on individual unit projects, it is necessary to focus on convergence and complex projects that package projects with high synergy with each other to maximize the effect of project promotion and improve public perception.

The brief suggested 'Smart Zero Energy Community (tentative name) Convergence Project' and 'Green Energy Integrated System-Based Construction Project' as promising new convergence projects.

The Smart Zero Energy Community (tentative name) convergence project is a convergence project promoted at the community level by combining the energy projects of the Green New Deal with the Smart City of the Digital New Deal. This is a large-scale technology demonstration project for key element technologies (P2G, P2H, V1G, V2G, etc.) of the integrated green energy system for regions where the burden of system operation is increasing due to this.