Net zero could push up electricity bills by 35%: Analysis

[Photo by Lee Seung-hwan]

South Korea’s drive for zero-carbon emissions by 2050 could push up electricity bills by 35 percent in 2030 from 2022, an analysis showed Sunday.

In a report submitted to Korea Electric Power Corp., the Korean Resource Economics Association said consumer electricity bills will have to cover the power generation and grid enhancement costs needed to achieve carbon neutrality in 2050.

The association estimated the real energy prices under two scenarios, depending on the major factors from the nationally determined contributions (NDC) such as electricity demand and grid output.

Under Scenario A, where the electricity price per unit of consumption was set at the 2021~2022 level of 110 won ($0.084) per kilowatt-hour (kWh), the real price would increase by 36.27 percent in 2030, 43.54 percent in 2040, and 26.8 percent in 2050.

The second scenario suggested actual price increases of 35.09 percent in 2030 and 23.4 percent in 2050.