ENERGY POLICY PLAN

[Anchor Lead]

The government has finalized a new energy policy plan for the next 20 years. The new plan calls for reducing nuclear and coal power production, and instead expanding eco-friendly energy to up to 35 percent, as well as allowing consumers to choose subscription plans for electricity according to their needs.

[Pkg]

Renewable energy, such as solar, wind and bio energy, accounts for just 7.6 percent of power generation in Korea. That's much lower than the 26-percent average rate among OECD member-countries. The Korean government has decided to expand renewable energy production to 30-35 percent by the year 2040. Coal power production will be cut drastically, while aged nuclear power plants will not have their lifespan extended. The new energy policy plan contrasts sharply with the previous plan, which was announced five years ago and called for expanding nuclear power production. Under the new energy policy plan, the use of natural gas and hydrogen will be increased to fight severe air pollution in the nation. As to energy consumption, the new plan calls for enhancing energy efficiency and presenting consumers with a wider choice in terms of energy use. A so-called "green electricity plan" will allow consumers to use new renewable energy if they want. Smart electricity meters will be provided to households to let them choose the right energy subscription plan according to seasonal demand and the time of energy use. This currently applies only to industrial sites.

[Soundbite] CHUNG JONG-YOUNG(MIN. OF TRADE, INDUSTRY AND ENERGY) : "The new measures allow for a more flexible energy use management by having consumers adjust their electricity use on their own according to the electricity fees."

While some pointed out that the new energy policy plan does not specify how renewable energy will be produced, the government says it will work out the details when devising the 9th plan on electricity supply and demand later this year.