This common view reveals oil tanks and amenities at Yeosu Nationwide Industrial Complicated, the biggest petrochemical industrial advanced in South Korea, in Yeosu on April 7, 2026. (Photograph by Shin Yong-ju / AFP by way of Getty Pictures)
Shin Yong-ju | Afp | Getty Pictures
The Iran conflict is “serving as a major turning level” for South Korea to shift to renewable power and away from oil, the nation’s power minister mentioned.
In an interview with CNBC’s Lisa Kim, South Korea’s Minister of Local weather, Vitality and Setting Kim Sung-hwan mentioned there’s a “rising nationwide consensus that we should bear a basic power transition.”
Seoul has dedicated to attaining 100 gigawatts of renewable power capability by 2030. Presently, South Korea’s complete renewable power capability stands at 37 gigawatts, based on the Renewable Vitality Institute.
Kim mentioned that the nation will deal with wind and solar energy to attain its objective of elevated capability.
South Korea derived solely about 9% of its energy wants from renewables in 2025, largely from photo voltaic, based on IEA information.
“Since wind energy takes appreciable time from preparation to precise technology, we are going to strive our greatest whereas specializing in solar energy as the simplest answer within the quick time period,” Kim mentioned.
When requested if the nation experiences sufficient daylight to generate the required solar energy, Kim expressed confidence. Seoul receives a median of two,148 hours of sunshine yearly, and Kim mentioned provinces similar to South Jeolla and Jeju Island obtain 100 hours greater than the capital. He contrasted that with Germany, saying South Korea was “in a a lot better place” than Europe.
Photo voltaic panels at a parking zone within the Jeju Techno Park in Jeju, South Korea, on Monday, Jan. 17, 2022.
Bloomberg | Bloomberg | Getty Pictures
Kim acknowledged that South Korea’s solar-related industries have shrunk significantly on account of China dominating the marketplace for photo voltaic parts, however mentioned his nation possesses “substantial technological prowess on this subject,” and Seoul will make sure that subsidies are directed towards fostering and defending the home photo voltaic business.
“By structuring solar energy earnings to learn our personal residents, we will flip this problem right into a blessing in disguise,” he mentioned.
A report from South Korean information outlet Chosun Ilbo mentioned the market share of Chinese language photo voltaic cells in South Korea surpassed 95% in 2024, up from 38% in 2019. South Korea’s home share, in distinction, fell from 50% in 2019 to only 4% in 2024.
Based on information from the China Photovoltaic Business Affiliation, China produced 93.2 % of the world’s polysilicon, 96.6% of wafers, 92.3% of photovoltaic (PV) cells, and 86.4% of PV modules in 2024.
Close to-term considerations
Nonetheless, South Korea nonetheless must cope with the near-term power fallout from the Iran conflict.
Kim mentioned Seoul would delay by round six months the closure of two coal-fired energy crops that had been anticipated to shutter in June, and restart one among its nuclear energy crops in an effort to scale back the demand for pure fuel. Elevated fuel costs feed into larger electrical energy manufacturing prices.
The nation has dedicated 22 million barrels of oil to the Worldwide Vitality Company’s launch effort, though the minister mentioned there are at present no plans to launch these reserves instantly because the state of affairs has not had a “direct or vital impression on provide and demand.”
South Korea, Asia’s fourth-largest economic system, imports 94% of its power, based on a 2024 report from the Korea Vitality Statistics Data Methods, and virtually 72% of its crude oil comes from the Center East.
Motorists line as much as replenish at a petroleum station in Seoul on March 9, 2026. The worth of the primary US benchmark for oil surged greater than 30 p.c on March 9, 2026 over considerations that the Center East conflict may create extended provide disruptions. (Photograph by Jung Yeon-je / AFP by way of Getty Pictures)
Jung Yeon-je | Afp | Getty Pictures
In late March, Seoul authorized a supplementary funds price 26.2 trillion received ($17.6 billion) to ease the burden of rising power costs on households and industries, in addition to imposing a worth cap on gas merchandise.
To scale back power demand, the capital has additionally reportedly applied a rotating parking system for public automotive parks, and public sector staff’ autos shall be banned from parking each different day based mostly on license plate numbers.
Kim advised CNBC the impression hasn’t fairly reached the purpose the place electrical energy charges have to be raised, saying an electrical energy worth hike materializes about three to 6 months after oil and fuel costs rise.
“That mentioned, the state of affairs is tough to foretell. We’ll carefully monitor the state of affairs in June and July and thoroughly devise numerous mechanisms to stop electrical energy worth hikes,” he added.
