South Korea’s Power Trilemma 2

Regarding the third facet of South Korea’s power tariff trilemma, the delayed transition to renewable power generation has contributed to rising climate-environmental tariffs, a component of the country’s power pricing formula. [...] In early 2024, the South Korean government froze power tariffs for the first quarter of the year, citing concerns about inflation.9 Some analysts speculate the decision may have also been influenced by the upcoming general election in April 2024.10 Rising calls to accelerate South Korea’s energy transition and address the financial instability of state-run energy companies have increased attention. [...] December 2022) 27 In case of significant fluctuations or potential fluctuations in fuel costs due to international fuel prices or exchange rate fluctuations, for the stability of citizens’ lives and smooth operation of the national economy, if notified by the Minister of Trade, Industry and Energy of the postponement of the application of all or part of the fuel cost adjustment unit prices, we wil. [...] Understanding the reasons behind the link between the lack of competitiveness in the power market structure and the mounting debt of KEPCO and higher consumer electricity bills is crucial. [...] Against this backdrop, the delayed deployment of renewable energy and rising costs associated with RPS, ETS and coal-fired power reduction, KEPCO increased the climate-environmental surcharge unit cost from ₩7.3/kWh in 2022 and to ₩9/kWh in 202375 Due to the delayed energy transition, South Korean consumers were estimated to burden around ₩4.3 trillion in 2022, ₩5.8 trillion in 202376 for the clim.