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[Column] How to Avoid the Pitfalls of Range-Based NDC Targets

The government has finalized its 2035 Nationally Determined Contribution (NDC) as a 53–61% reduction from 2018 levels. However, the lower-bound–oriented approach is viewed as prioritizing industrial burdens over scientific evidence. A range-type target risks driving administrative action toward the lower end, leaving the upper target as a symbolic declaration. To ensure industrial competitiveness and policy credibility, institutional improvements—such as setting fiscal and R&D plans based on the upper bound and introducing incentives for overachievement—are needed.

Writing the Next Chapter for Korea's Renewable Energy Market

This report focuses on advancing the structural sophistication of the system, improving financial accessibility, and expanding market flexibility to accelerate renewable energy deployment in Korea. As corporate RE100 implementation methods diversify, there is a growing need for portfolio-based procurement strategies rather than reliance on a single approach. Accordingly, greater policy flexibility and institutional refinement have become essential. This report proposes specific improvements in four areas.

A Comprehensive Assessment of Costs and Emissions in the Imported Green Hydrogen Value Chain for Korea

This issue paper presents a stage-by-stage cost analysis of importing green hydrogen from Australia to Korea, covering conversion, maritime shipping, storage, re-conversion, and distribution. The analysis estimates import costs for both ammonia and liquefied hydrogen under different technological scenarios.

Multi-criteria renewable auction modeling considering the carbon footprint certification of photovoltaic modules

This study aims to investigate the efficiency and effectiveness of multi-criteria renewable auctions by constructing the multi-criteria agent-based renewable auction model. We simulated Korean solar photovoltaic (PV) auction market using the model, considering carbon footprint certification scheme of PV modules as a non-price selection criterion. The results show that low carbon footprint modules are extensively adopted than high carbon footprint modules, although the total costs required increased compared to the price-only auction. However, as the unit cost per carbon abatement is higher than the emission allowance cost, it is doubtful that multi-criteria auction is more cost-efficient than other policy instruments outside the auction. We have shown that the agent-based multi-criteria renewable auction model serves a useful tool to analyze the impact of auction design element on the auction results, and it can further be utilized to tailor the auction design by the model upgrade and modification.

Probabilistic Prequalification Scheme of a Distribution System Operator for Supporting Market Participation of Multiple Distributed Energy Resource Aggregators

This paper addresses the need for distribution system operators to effectively manage uncertainties related to distributed energy resources. We propose a probabilistic approach using Polynomial Chaos Expansion, allowing the operator to balance economic efficiency with system reliability by setting a pre-determined acceptable violation probability. Moreover, we introduce a framework for integrating the capability of distributed energy resources aggregators to manage uncertainties through the uncertainty band commodity. Our methodology fairly distributes responsibility for constraint violations among various stakeholders by employing two allocation strategies: one based on Shapley Value and another based on sensitivity factors. The proposed system significantly improves the overall decision-making process by considering both economic and reliability factors within the prequalification process of distribution system operator.

P2P Credit Auction vs. Net Metering: Benefit Analysis for Prosumers under Incremental Block Rate Electricity Tariff

Our study conducts a quantitative analysis how the introducing of peer-to-peer (P2P) trading affects the benefits of each stakeholder, offering a guide for policy adoption. Firstly, we have devised a P2P trading mechanism based on credit auctions tailored for residential, while considering the application of the increasing block rate tariff often applied to residential customers in the real world, and have assessed its benefits in comparison to the current net metering scheme. Multiple case studies were undertaken, encompassing various scenarios, including the level of purchase price of utility for uncleared auction offers, the proportion of prosumers participating in the trading network, and the level of capacity of PV. Our study shows that the P2P trading does not always yield positive benefits for prosumers compared to the prior policy. Nevertheless, we identify specific conditions under which the P2P trading can stimulate residential PV installations.

Quantifying Benefit of Well-Located Distributed Energy Resources

This study quantifies the system-level benefits of well-located Distributed Energy Resources (DERs) by addressing the mismatch between generation and demand locations. Using Monte Carlo simulations combined with transmission expansion planning and AC optimal power flow models, it evaluates both long-term and short-term impacts of DER deployment. The findings show that strategically locating DERs can significantly reduce transmission investment, congestion, and loss costs, leading to more efficient and cost-effective power system planning.

Korean Power System Challenges and Opportunities: Priorities for Swift and Successful Clean Energy Deployment at Scale

With South Korea’s electricity demand expected to grow 30% by 2035, transitioning to clean energy resources will be critical in reducing the electric sector emissions and achieving national climate goals. Rapid technological improvements can help keep costs low and maintain grid reliability, if Korea’s government takes a coordinated approach to the clean energy transition. This policy brief identifies key barriers to Korea’s shift toward clean energy, based on the authors’companion report (A Clean Energy Korea by 2035: Transitioning to 80% Carbon-Free Electricity Generation), interviews with experts, and the most recent data and literature. It then explores policy solutions for overcoming these technological, economic, and institutional barriers, and suggests market transformation strategies to speed the adoption of clean energy technologies. Amid ongoing cost and technological improvements in wind, solar, and energy storage, advancing this report’s recommended policy actions with maximum coordination among government officials can meaningfully accelerate Korea’s clean energy transition.

A Clean Energy Korea by 2035 - Transitioning to 80% Carbon-Free Electricity Generation

The current global energy crisis has massive implications for the people and economy of South Korea (Korea), where at least 90% of energy use depends on foreign fossil fuels. Clean electricity accounts for only 39% of total generation, with electricity demand expected to increase 30% by 2035. This study shows that Korea can achieve 80% clean electricity by 2035 by capitalizing on rapid technological improvements and decreasing costs of solar, wind, and battery technology. Doing so would slightly lower electricity supply costs, significantly reduce dependence on imported natural gas and coal, and dramatically cut power sector emissions. Further, this study finds that Korea’s power grid under a clean energy scenario will maintain reliability without coal generation or new natural gas plants. To realize these significant economic, environmental, and energy security benefits, policies such as an 80% clean electricity standard by 2035 and corresponding renewable energy deployment goals are required.

Implementation Cost Estimation for Net Zero Electricity System based on Optimal Storage Mix Model

We evaluated the economic costs of the transition to a more sustainable energy system in South Korea to achieve carbon net zero emissions (NZE) by 2050. The analysis presented that to achieve this goal, it is necessary to reduce the use of fossil fuel-based power generation, increase the development of carbon-free power sources, and secure storage facilities. We calculated the total costs of energy storage for the Path-to-NDC, Path-to-NZE A, and Path-to-NZE B scenarios. We also investigated the effects of renewable energy output control, demand pattern adjustments, and hydrogen storage on the investment costs of energy storage. Using sensitivity analysis, we studied the consequences of a zero-curtailment policy, excluding long-term storage, and increasing nuclear power generation. Our findings provided invaluable insights into the potential of these solutions to facilitate the transition to a more sustainable power system in South Korea.