[2025 Audit] Climate Minister: "Increasing Renewable Energy Does Not Raise Electricity Rates"

Kim Sung-hwan: "Wind and Solar Power Prices Have Already Dropped Significantly"

Kim Sung-hwan, Minister of the Ministry of Climate, Energy and Environment, stated on the 16th, "An increase in the share of renewable energy does not necessarily mean that electricity rates will rise."

Minister Kim made this rebuttal during the National Assembly's Climate, Energy, Environment and Labor Committee's business report on the energy sector, in response to People Power Party lawmaker Woo Jaejun's remark that "many people are concerned that a higher proportion of renewable energy will eventually lead to higher electricity rates."

In its business report on this day, the Ministry of Climate, Energy and Environment announced plans to expand renewable energy generation capacity from the current 35GW to more than 78GW by 2030. The ministry also aims to increase the share of renewables from 10.5% last year to over 33% by 2030.

Kim Sung-hwan, Minister of the Ministry of Climate, Energy and Environment, is reporting on business at the plenary meeting of the Climate, Energy, Environment and Labor Committee held at the National Assembly in Yeouido, Seoul on the 16th. Photo by Yonhap News

Minister Kim said, "International energy agencies have already determined that wind and solar power are the cheapest forms of energy, so increasing renewable energy generation does not mean that electricity rates will go up."

He added, "It is true that Korea has not yet reached 'grid parity,' so renewable energy is still somewhat more expensive. However, if you look at recent trends, the actual prices of wind and solar power have dropped significantly. We are reaching a stage where an increase in renewable energy generation does not immediately translate into higher electricity rates."

Grid parity refers to the point at which the cost of producing electricity from renewable energy sources becomes equal to that of conventional fossil fuel power generation.

He also dismissed concerns about a 'nuclear phase-out' related to the division of nuclear power plant work. With the reorganization of government ministries on October 1, the Ministry of Climate, Energy and Environment is now responsible for nuclear industry policy, while the Ministry of Trade, Industry and Energy oversees nuclear exports.

People Power Party lawmaker Cho Jiyeon said, "To use an analogy, for renewables, the producer and the salesperson work for the same company, but for nuclear power, the producer and the salesperson work for different companies. This raises concerns about a 'nuclear phase-out, season 2.'" In response, Minister Kim said, "There may be differences in roles depending on the work, but when you look at the Lee Jaemyung administration as a whole, we are one family. It is not a matter of one side phasing out nuclear power and the other not."