Project title
Topic
Research contents
Establishing Response Strategies for Energy Transition Policies
□ With the acceleration of electrification and the rapid expansion of new industries such as Artificial Intelligence (AI) and data centers, global electricity demand is expected to surge. At the same time, the acceleration of carbon neutrality (Net-Zero) policies and growing calls for global climate action are driving the expansion of carbon-free power sources as an essential task. However, this inevitably entails substantial increases in investment and operating costs, raising concerns about electricity price hikes.
❍ If this cost burden intensifies, energy transition policies risk losing their long-term sustainability.
For instance, Germany’s rapid renewable energy transition led to a sharp rise in electricity prices, threatening the competitiveness of manufacturing and other industries.
This case clearly illustrates the potential problems that can arise when the pace and timing of power mix transition, along with the economic feasibility of each energy source, are not considered in tandem during the expansion of carbon-free power generation.
❍ Therefore, in introducing carbon-free power sources, it is essential to establish concrete guidelines on which technologies to adopt, at what timing, and on what scale, while also devising measures to minimize the associated economic burden.
□ In this context, the present study aims to comprehensively analyze the current status and future outlook of domestic and international energy transition policies and, based on this analysis, derive policy implications for establishing a systematic strategy for introducing carbon-free power sources in Korea.
❍ The study will review trends in power generation shares, major policy developments, changes in the economic feasibility of power sources (as represented by the Levelized Cost of Electricity, LCOE), electricity price trends, and related support measures such as subsidies and tax incentives in key countries, including Korea, the United States, Europe, China, and Japan.
❍ In addition, the domestic LCOE for each power source will be recalculated, taking into account output control resulting from imbalances in power supply and demand.
❍ Through this, the study aims to establish criteria for prioritization and scale of introduction by energy source and region, reflecting domestic power supply-demand forecasts and industrial characteristics, and to propose strategies that can achieve both power system stability and cost efficiency.
Furthermore, by identifying in advance policy and market risks—such as changes in global electricity market structures, strengthening of environmental regulations, and fluctuations in carbon emission permit prices—the study seeks to establish a flexible decision-making framework. It also aims to prepare comprehensive risk management measures from an economic perspective to secure a sustainable growth foundation for the power industry amid increasing uncertainty.
Director
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