Legislation supporting the energy transition agenda of the Lee Jae-myung administration is advancing in the National Assembly. Key measures include a special law to support regions affected by coal plant closures, reforms to the Renewable Portfolio Standards (RPS), and amendments to three laws aimed at timely power grid construction.
On May 21, Lee Ho-hyun, the Deputy Minister of the Ministry of Climate, Energy and Environment, held a briefing at the government complex in Sejong, stating, "Laws have been passed that will facilitate a just transition while enhancing local acceptance as we move toward a carbon-neutral energy mix. This is significant in establishing a regulatory framework to achieve our energy transition goals."
The National Assembly's Climate, Energy, and Environment Committee approved 46 bills during a plenary session on May 19, including the 'Special Law on Support for Workers and Regions Affected by Coal Power Plant Closures' and amendments to the Renewable Energy Act.
The coal plant closure support law addresses potential large-scale unemployment and economic downturns in regions affected by the closure of coal power plants. It focuses on institutional support for worker job transitions, employment assistance, and the development of alternative industries in these areas.
The special law allows the national and local governments to prioritize the development of zero-carbon energy industries using the infrastructure of decommissioned coal power plants. It also mandates the establishment of local transition councils that include representatives of workers and residents to ensure their participation in the planning process for regional support.
Notably, the law provides a basis for designating certain coal power plants as security power generation facilities instead of approving closure plans if deemed necessary for the reliability and stability of the power supply.
The government has expressed concerns about job insecurity for workers, the impact on partner companies, and regional economic downturns as the closure of coal power plants accelerates in the transition to carbon neutrality. Several coal plants, including the Taean Unit 2 this year and the Hadong Units 1-3, Boryeong Units 5-6, and Samcheok Units 3-4 next year, are scheduled for closure.
As a result, the government aims to minimize regional shocks during the closure process while maintaining the stability of the power supply.
Deputy Minister Lee stated, "The principle is to phase out coal power by 2040, but we are considering a concept of security power that can be temporarily utilized in emergency situations, taking into account the power supply situation and regional conditions."
He added, "A detailed roadmap for closure and compensation will be discussed in conjunction with the 12th Basic Plan for Power Supply and Demand."
Additionally, the amendment to the Renewable Energy Act, which reforms the RPS system, has been passed. This amendment aims to gradually phase out the RPS system, which has been in operation since 2015, and transition to a long-term fixed-price contract market.
Going forward, new renewable energy projects will be operated through a long-term fixed-price contract market based on capacity units. The existing 29 RPS obligated entities will be managed separately as eight public sector entities and 21 private sector entities.
Moreover, amendments to three laws related to timely power grid construction (the Special Law on Power Grids, the Electricity Business Act, and the Act on Promotion of Power Generation Development) were also approved in this committee session.
The amendments include provisions for private companies to construct certain sections of the national power grid and then transfer ownership to Korea Electric Power Corporation (KEPCO) under a Build-Transfer (BT) model. The government sees the need to leverage private capabilities as demand for the power grid surges due to the expansion of renewable energy and the growth of the artificial intelligence (AI) industry.
* This article has been translated by AI.
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