South Korea's Energy Demand Management Fails to Meet Goals, Government Lowers Targets

South Korea's energy policy is falling short, with the government failing to meet most of its energy consumption reduction goals set between 2012 and 2024. A report by Green Korea United revealed that the nation only achieved its final energy consumption reduction target in 2020, exceeding goals by millions of tons of oil equivalent in other years.

For instance, in 2024, final energy consumption surpassed the government's target by 6.8 million tons of oil equivalent. The energy intensity, a measure of energy efficiency, also failed to meet targets in all but one year since 2020. This metric, where a lower number indicates better efficiency, showed a real figure of 0.101 toe/million won in 2024, against a target of 0.094 toe/million won.

The situation is mirrored in electricity demand management. Over the last decade, the government has progressively lowered its targets for reducing peak electricity demand. The 7th Basic Plan for Power Supply (2015) aimed to reduce peak electricity by 10,571 megawatts by 2025. However, the 11th Basic Plan (2025) reduced this target to 3,534 MW, a decrease of about 66%. Annual electricity consumption reduction targets also saw an 86% cut, from 73,281 GWh in the 7th plan to 6,839 GWh in the 11th.

While South Korea struggles, the international community increasingly uses demand management as a key climate action strategy. The IPCC's Sixth Assessment Report dedicates sections to demand-side greenhouse gas reduction measures. The EU's Energy Efficiency Directive aims for an 11.7% reduction in final energy consumption by 2030, prioritizing efficiency. Germany has even legislated its energy consumption reduction targets.

Hwang In-cheol, a specialist at Green Korea United's Climate and Energy Team, criticized the neglect of demand reduction in South Korean energy policy. He urged the government to establish concrete national plans and legal frameworks for energy demand reduction, similar to international practices, and to actively develop systematic policies for this purpose.