Reforming Korea’s Electricity Market for Net Zero
This report was commissioned by Korea's Ministry of Trade, Industry and Energy and
carried out jointly by the International Energy Agency (IEA) and the Korea Energy
Economics Institute. The objective of the study was to analyse market design improvements
to enable achieving net zero in Korea's power sector, in accordance with the country's
long-term decarbonisation objectives. For this the IEA devised a Korea Regional Power
System Model to evaluate the emissions implications of the plans laid out in Korea’s
9th Basic Plan for Long-Term Electricity Supply and Demand and the Carbon Neutral
Strategy published in 2021. The analysis includes a scenario elaborated by the IEA,
based on the World Energy Outlook's Announced Pledges Scenario, to analyse potential
for further market improvements. This analysis covers market improvements in areas
such as carbon pricing, market price enhancements that better reward lowemissions
technologies and security of supply, and market access reforms to ensure the participation
of a wider range of new technologies and distributed energy resources.
Available from February 01, 2022