Key Findings
The many policy changes that accompanied the 8th Plan have resulted in some small but noteworthy improvements in KEPCO’s governance.
In keeping with the national policy focus on the “Fourth Industrial Revolution”, KEPCO’s 2018 sustainability report confidently aligns the company’s strategy with a number of buzzwords related to an integrated “smart energy” approach to new technology.
Executive Summary
The release of South Korea’s 8th Basic Energy Plan at the end of 2017 marked a crucial step forward in the evolution of the country’s approach to power planning and environmental management with its shift toward clean energy. No power sector policy stands in isolation however. Adjusting the policy settings was a meaningful first step, but it is not enough especially in a region where power market realities are shifting so dramatically.
To be effective, Korea’s new policy roadmap must become a catalyst for action by several other institutions, not all of which fall within the narrow confines of the Ministry of Trade, Industry and Energy (MOTIE), which oversees Korea’s power sector. Progress by Korea’s leading companies, financial institutions and investors will inevitably define how quickly Korea can transition toward clean energy. For the 8th Plan to have real impact, it will be critical for Korea Electric Power Company (KEPCO), South Korea’s 51% government-owned power company, and its key investors, the National Pension Service (NPS) and the Korea Development Bank (KDB) to play a leading role in pulling Korea’s other pensions and banks in a greener direction.
Please view full report PDF for references and sources.
Press release: IEEFA Asia: South Korea is behind the curve on power-generation policy
