Fatih Birol, the Secretary-General of the International Energy Agency (IEA), said, "Energy demand will increase six times faster over the next decade due to the growth of artificial intelligence (AI), data centers, and electric vehicles."
Secretary-General Birol noted during a joint press conference with Lee Ho-hyun, the Vice Minister of Trade, Industry and Energy, held at the Paradise Hotel in Busan on the 27th, "We have entered an 'electric era' that will reshape the energy landscape for decades to come."
Secretary-General Birol diagnosed that global energy investment trends have changed due to AI and the climate crisis. He said, "Ten years ago, the investment scale in fossil energy and renewable energy was nearly equal, but now $1 is invested in fossil energy for every $2 invested in the clean energy institutional sector."
He expressed concern, saying, "The worrying point in today's global power investment trends is precisely the power grid." This is because, while about $1 trillion is invested annually in the power generation sector globally, investment in the power grid amounts to only $400 billion. He added, "In a situation where power usage is increasing, we must rapidly increase expenditure on the power grid to ensure power security."
In this regard, he evaluated the Lee Jae-myung government's policies on the expansion of renewable energy and the construction of an energy highway as positive. Secretary-General Birol said, "Strengthening investment and policy support for new areas will ensure the sustainable adoption of AI in Korea," and noted that "the efforts to establish Korea's 'energy highway' are a very welcome development."
He continued, "Korea is already playing a leading role in the global battery supply chain," and added, "This leadership can be further extended to essential power grid equipment such as transformers and cables."
Meanwhile, he emphasized the role of nuclear power in responding to energy demand. Secretary-General Birol said, "Currently, nuclear power is producing the most electricity globally in history," and added, "We can say that nuclear power has made a comeback."
Regarding whether additional expansion of nuclear power generation is necessary in Korea, he said, "It should be decided reflecting the political, economic, and technological context and realities of each country," but he also evaluated, "Korea's nuclear power has the capability to be executed on time and within a reasonable budget, and it is widely recognized that it has a very strong reputation globally."