The Korea Energy Master Plan was first developed in 2008 to achieve sustainable economic development and energy security while considering environmental impact. The plan is to be updated every five years to consider environmental changes and changes in energy market supply and demand. In response to climate change, the 2008 master plan identified the need to reduce greenhouse gas emissions as the primary global issue for energy policy. The plan calls for maximum use of nuclear power and renewable energy and dramatic curb of energy demand. Its energy policies primarily focus on ways Korea can provide an affordable and stable supply of power while supporting economic growth and industrialization (Ministry of Trade, Industry and Energy [MOTIE], 2014). The policy has brought significant growth to the renewable and nuclear power generation industries. However, cheap electricity has increased electricity consumption and destabilized the supply-demand power balance. The construction of more power plants to meet growing electricity demands has also had negative impacts such as increased greenhouse gas emissions, an overloaded electricity transmission network, and opposition from local residents near power lines and power plants. In accordance, the second energy policy in 2014 focuses on (MOTIE, 2014): 1. Transitioning to demand management 2. Building a distributed generation system 3. Balancing between environmental and safety concerns 4. Enhancing energy security and energy supply stability 5. Establishing a stable supply system for each energy source 6. Shaping energy policy to reflect public opinion Regarding market trends and consumer/industry demands, the Korean economy is relatively high in energy use per GDP unit. Korea’s many energy-intensive industries and cheap electricity have caused the industrial sector to sharply increase its demand for cooling and heating. The Fukushima nuclear power plant accident in Japan heightened public fears about nuclear power generation. From 2010 to 2035, as developing countries grow in economics and population, global energy demand is expected to increase by 48.3% and greenhouse gas emissions by 40.2%. As the cost of oil rises and unconventional energy sources such as shale gas and tight oil are developed, negotiations on a new post-2020 global climate framework will change the energy market landscape. Regarding energy demand management, the plan focuses on revising electricity rates to ease overconsumption and to reflect environmental and social costs such as refurbishment of nuclear facilities and the transmission network, different pricing for different types of voltage use, progressive rate relief, and expansion of critical-peak pricing. It applies information and communications technology (ICT) demand management by deploying smart grid incentives for energy storage system installation, revising standards for building design, and invigorating the demand management market. To balance electricity consumption ratios, the plan advocates increasing renewable gas, coal, and oil consumption. To establish a stable supply system for each energy source, the plan suggests diversifying oil import routes to respond aggressively to global market changes such as the emergence of shale gas. It recommends supplying more than 15% of power from distributed sources such as integrated energy systems, renewable energy, and in-house generators, and constructing power plants in areas that have sufficient electricity transmission capacity. It also suggests accelerating the use of eco-friendly and renewable energy sources such as solar, wind, geothermal, fuel cells, and energy storage systems to reduce CO2 emissions. In environmental protection and improved safety for power plant operation, the plan advises using greenhouse gas reduction technologies such as ultra-supercritical and carbon capture and storage for thermal power plants as soon as they are available. It prioritizes nuclear plant safety by expanding investment, improving management of aged plants, and fostering planned and preventive inspections. It also recommends responding proactively to energy-related conflicts by improving transparency in electricity transmission network and spent nuclear fuel management policies. The plan gives several insights into the future of energy marketing. First, as electric charges increase, customers will have more interest in energy issues such as electricity consumption and CO2 emissions when they purchase product. They will want manufacturers to divulge the energy efficiency of products. As technology develops, products will add additional functions that will increase future product costs. Eventually products that consume less energy will be more competitive as customers consider total ownership costs. The new market trends will create and expand the need for energy management systems utilizing ICT, renewable energy, and safety in nuclear power plants.

• Jaesu Kim(Volvo Group Korea)
• Young Joon Joo(Minsitry of Trade, Industry & Energy)
• Kyung Hoon Kim(Changwon National University)