Government Begins Discussions on 10th Basic Plan for Electricity Supply and Demand... "NDC Enhancement and Carbon Neutrality Specification"

[Asia Economy Reporter Kwon Haeyoung] The government has officially begun discussions for the announcement of next year's '10th Basic Plan for Electricity Supply and Demand.'

The Ministry of Trade, Industry and Energy announced on the 17th that it held the '6th Electricity Policy Deliberation Committee of 2021' at the COEX Conference Room in Samseong-dong, Seoul, to discuss the direction of the 10th Basic Plan for Electricity Supply and Demand.

According to the Electric Utility Act, the Ministry of Trade, Industry and Energy forecasts electricity demand to ensure stable electricity supply and designs power facilities and power source composition accordingly. It announces the mid- to long-term Basic Plan for Electricity Supply and Demand every two years. The 10th Basic Plan is scheduled to be announced by the end of next year.

The Electricity Policy Deliberation Committee for establishing the Basic Plan is composed of 29 members, including Professor Lee Chang-ho of Gachon University Smart Green Home Research Center as chairman, industry-academia-research representatives, civic groups, and related government officials.

The Ministry explained that the 10th Basic Plan will be promoted in a direction that concretizes the recently announced 2030 Nationally Determined Contribution (NDC) enhancement and the 2050 carbon neutrality scenario, and plans to reflect carbon neutrality and electrification demand due to the 4th Industrial Revolution in the supply and demand plan.

It also incorporates coal power reduction and liquefied natural gas (LNG) power conversion, a significant expansion of renewable energy, and zero-carbon power sources such as hydrogen and ammonia into the power source composition to achieve the 2030 greenhouse gas reduction target in the transition sector.

The Ministry added that it plans to specify a volatility response system, including the expansion of storage facilities and reinforcement of grid safety measures, in line with the increased share of renewable energy generation.

Lee Won-ju, Director of the Electricity Innovation Policy Division at the Ministry of Trade, Industry and Energy, said, "The 10th Basic Plan for Electricity Supply and Demand faces the challenge of accelerating the transition to zero-carbon and clean energy power composition while simultaneously securing stable electricity supply and grid operation in preparation for electrification demand and renewable energy expansion. We will actively reflect the diverse opinions presented by experts from various fields in the supply and demand plan establishment process and form and operate various expert subcommittees to conduct in-depth discussions going forward."

The Basic Plan for Electricity Supply and Demand will go through procedures such as task discussions by working-level subcommittees composed of various experts and sector-specific working groups, strategic environmental impact assessments, consultations with related ministries, reports to standing committees of the National Assembly, and public hearings, before being deliberated and finalized by the Electricity Policy Deliberation Committee around the end of next year.