International electrical interconnection to unlock solar photovoltaic potential and accelerate progress towards carbon neutrality in Japan and South Korea

In October 2020, both Japan and South Korea separately pledged to reach carbon neutrality by 2050. These announcements marked decisive turning points in the two countries' long-term energy policies. These ambitious and necessary energy and climate plans will lead to major transformations of energy systems, including electricity, heating & cooling, and transportation. Low carbon electricity and further electrification, for examples of some industrial activities and transportations, are likely to be key pillars of decarbonization, meaning there is a need to further expand renewable energy and/or nuclear technologies. The present analysis, based on a computer simulation of Japan and South Korea power systems, first economically demonstrates why an electrical interconnection between the two countries should send a strategic investment signal in favor of the most competitive new low carbon low marginal cost generating technologies. It then discusses the competitiveness of these technologies. It is found that under current conditions and in the framework of the interconnection considered, the potential of solar photovoltaic should be unlocked, especially in the area of Kyushu, Japan. The realization of such a project should thus contribute to accelerate progress towards similar carbon neutrality objectives in the region.