1. Research Goals and Methods

❚  Research Background

￮ “Local production of renewable energy for local consumption” (“local production for local consumption”) refers to the practice of consuming renewable energy in the same region in which it is produced.

￮ This strategy can 1) facilitate the transformation of the power system by aligning electricity supply and demand at the regional level, 2) address the instability of contemporary centralized power grids caused by renewable energy expansion, and 3) maximize the benefits of distributed energy resources based on region-specific power demand. 

￮ In 2024, Jeonbuk State generated approximately 10 GWh of new and renewable energy, accounting for 17.9% of the nation’s total new and renewable energy production. The completion of the Saemangeum 7 GW project by 2030 is expected to increase the region’s electricity and renewable energy self-sufficiency rates to 126% and 90%, respectively. Without expanding its renewable energy demand base, however, Jeonbuk State will remain merely a production hub for renewable energy. 

￮ Under these circumstances, Jeonbuk State must take the initiative to improve community acceptance and expand distributed energy resources across the region by minimizing transmission lines and accelerating structural transformation to facilitate the use of locally produced electricity for regional development. 

❚ Research Goals   

￮ This study aims to identify institutional and policy improvements that can unlock the potential of distributed energy resources and proactively pursue the “local production for local consumption” strategy. 

- To address the uneven geographical distribution of renewable energy sources, the study reviews the institutionalization of the concept of spatial congruence and proposes specific legal amendments and institutional reforms to realize the concept.

2. Conclusion and Policy Recommendations

❚ Institutional improvements for implementing the “local production for local consumption” strategy

￮ Two key areas of institutional improvement were identified: 1) existing laws and regulations, and 2) government policies and projects.

￮ To promote balanced regional development and effectively implement the “local production for local consumption” strategy, the central government should make efforts to enact the “Special Act on RE100 Industrial Parks,” focusing on mitigating the concentration of corporate energy consumers in the Seoul Metropolitan Area. 

￮ The electricity supply provisions of the Electric Utility Act should explicitly stipulate the promotion and realization of “local production for local consumption.”

￮ Article 3 (Responsibilities of the State and Local Governments) of the Act on Offshore Wind Energy should be amended to mandate that “state and local governments formulate plans for the preferential supply of electricity generated from offshore wind farms to their regions of origin.”

￮ To effectively respond to the climate crisis, electricity distributors must set electricity rates in ways that both promote balanced national development and embrace the value of carbon neutrality. 

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