Companies burn Korea in RE100's renewable electricity score

Korea is the hardest country in which to procure renewable electricity, according to companies privy to an initiative on shifting to all-renewable energy by 2050.

HD Hyundai XiteSolution's solar panel facilities in China [HD HYUNDAI XITESOLUTION]

Korea is the most difficult country in the world for businesses to procure renewable electricity, according to a recent RE100 report.

RE100 is a global initiative promoting a corporate shift to renewable electricity, led by the Climate Group in partnership with CDP. Member companies are encouraged to convert 100 percent of their energy consumption from fossil fuels to renewables such as solar and wind by 2050. The initiative also recognizes the purchase of green instruments such as a renewable energy certificate.

Of the 164 RE100 companies doing business in Korea, 40 percent, or 66 of them, cited difficulties in procuring renewable electricity in the country, the highest among all member countries, according to RE100's annual disclosure report for 2023 published by the Climate Group and CDP.

A lack of procurement options was cited by 32 member companies as the biggest obstacle to making the energy mix greener, followed by high costs or limited supply as cited by 27 companies in Korea.

Only 9 percent of electricity consumed by RE100 companies in Korea was recognized as renewable last year, the report said. The amount is far below nations such as Japan, which logged 25 percent, and China, which reported 50 percent. Western countries reported far higher figures, with Germany posting 89 percent and the United States reporting 77 percent of electricity usage qualifying as renewable.

A total of 31 Korean companies joined the RE100 as of the end of 2022. SK Group was the first to join the initiative in 2020, while Samsung Electronics joined in 2022 and LG Electronics signed on last year.

Achieving the RE100 target has been considered challenging for Korean companies as the country's industrial structure is inordinately reliant on the energy-heavy manufacturing segment. Geographical traits such as small land mass and low wind speed make it hard to opt for self-generation as well.

The report said Samsung Electronics converted 19 percent of its electricity usage to renewables by the end of 2022, compared to the self-reported 31 percent. The Korean electronics giant has pledged to shift to 100 percent renewable electricity by 2050.

Hyundai Motor's progress came in at 9 percent, matching the self-reported figure.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]