Kim Seong-hwan, Minister of Climate, Energy and Environment, warned on the 24th that a renewable-only energy approach could raise electricity rates significantly. Speaking on CBS radio's '박성태의 뉴스쇼', Kim stated that eliminating coal power and relying solely on renewable energy could push rates toward Germany's levels. Kim cited industrial competitiveness concerns, noting Korea's industrial electricity rate of 180 won per kWh compared to China's 120 won per kWh. The statement reflects the challenge of balancing climate crisis response through reduced coal power with meeting AI-era electricity demand and maintaining competitive manufacturing costs.
Minister Warns Renewable-Only Approach Could Raise Rates Significantly
Kim Seong-hwan stated during the CBS radio interview on the 24th that "if we turn off coal (thermal power plants) and do everything with renewable energy, there is a possibility that electricity rates could rise significantly, close to Germany's levels." Kim made this remark while discussing the difficulty of competing with China if renewable energy expansion leads to further rate increases, given that Korea's industrial electricity rates are already higher than China's.
![Kim Seong-hwan, Minister of Climate, Energy and Environment, reviewing electricity supply plans for Honam semiconductor industrial complex]()
Kim Seong-hwan reviewing electricity supply plans for Honam semiconductor industrial complex on July 16 at Jeonnam Gwangju Integrated Special City Hall. Photo: Ministry of Climate, Energy and Environment
Korea's Industrial Electricity Rate 180 Won per kWh vs China's 120 Won
Kim pointed out that "we have to compete with China in advanced industries, but China's industrial electricity rate is about 120 won per kWh, while ours is 180 won even though we have some nuclear power." The minister highlighted this 60 won per kWh gap as a competitive disadvantage for Korean manufacturers.
Hydrogen Alternative to Nuclear Deemed Too Expensive for Implementation
Kim referenced a past plan to replace 15% of nuclear energy with hydrogen following previous nuclear accidents, stating this approach is "too expensive to realize immediately." He added that "there is a global concern about how to secure a stable electricity supply source."
Minister's Statement Contrasts with October Renewable Energy Cost Remarks
Kim's statement that expanding renewable energy would raise electricity rates differs from his previous position. In October, during a National Assembly Climate, Energy, Environment and Labor Committee briefing, Kim stated that "international energy organizations already consider wind and solar the cheapest energy sources," adding that "Korea has not yet reached 'grid parity' (the point where renewable energy generation costs equal fossil fuels), so renewable energy rates are a bit more expensive, but prices have decreased significantly recently."
Kim emphasized that while coal-fired power generation must be reduced to prevent climate crisis, Korea must simultaneously meet increasing electricity demand in the AI era and maintain manufacturing costs competitive with China.
FAQ
What did Korea's Climate Minister say about renewable energy and electricity rates on the 24th?
Kim Seong-hwan stated on CBS radio on the 24th that eliminating coal power and relying solely on renewable energy could cause electricity rates to rise significantly, potentially approaching Germany's levels. He cited industrial competitiveness concerns with China as a key factor in this assessment.
How do Korea's industrial electricity rates compare to China's according to the minister?
Kim pointed out that Korea's industrial electricity rate is 180 won per kWh, while China's is approximately 120 won per kWh, representing a 60 won per kWh disadvantage for Korean manufacturers despite Korea having some nuclear power capacity.
Why did the minister say hydrogen cannot replace nuclear energy immediately?
Kim stated that a past plan to replace 15% of nuclear energy with hydrogen is "too expensive to realize immediately," indicating cost barriers prevent hydrogen from serving as a near-term alternative to nuclear power in Korea's energy mix.
