Energy Use Rationalization Act

Source: IEA/IRENA Renewables Policies Database
Last updated: 5 November 2017
Following the oil shocks of the 1970s, the Korean government promulgated the Rational Energy Utilisation Act in 1979. The Act has been revised several times since, notably in 2002, 2003 and 2008. The 2008 revisions contain provisions for various energy management measures such as energy audit, ESCOs and certification of energy-efficient equipment. The 2003 revision included a focus on measures to reduce greenhouse gas emissions, on top of improving the efficient use of energy. The government encouraged ESCOs and other companies covered by Voluntary Agreement to register their greenhouse gas reductions with the government. In 2002, the Act was revised to widen the scope of consultation on the energy utilisation planning programme - formerly confined to the public sector - to the private sector and to introduce Corporate Average Fuel Efficiency (CAFE) standards. In addition, under this Act, the government carried out voluntary agreements with industry, promoted the use of energy efficiency labelling, and supported Energy Service Company (ESCO).

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