The South Korean government has officially decided to review the introduction of new nuclear power plants to address the surging electricity demand driven by the expansion of semiconductor industrial complexes and artificial intelligence (AI) data centers.
Kim Sung-hwan, Minister of Climate, Energy and Environment, stated at the National Fiscal Strategy Meeting held at the Blue House on July 13, "To respond to the rapid increase in electricity demand and stabilize the base load power supply, we will gather expert opinions and engage in public discussions to determine whether to introduce new nuclear power plants and small modular reactors (SMRs), and reflect this in the 12th Basic Plan for Electricity Supply and Demand (electricity supply plan)."
This marks the first time the government has officially acknowledged the possibility of adding new nuclear power plants beyond the two large reactors and one SMR included in the 11th electricity supply plan.
The 12th electricity supply plan is expected to outline electricity supply strategies from 2026 to 2040, with the Ministry of Climate planning to finalize and announce the plan within the year.
Minister Kim noted that the confirmed projects for the Yongin and Honam semiconductor clusters and the expansion of AI data centers alone are projected to generate approximately 30 gigawatts (GW) of electricity demand, with potential demand exceeding 40 GW. Additionally, he forecasted that the transition from internal combustion engine vehicles to electric vehicles and the electrification of building heating could lead to an additional electricity demand of over 50 GW by 2040.
He emphasized the need to accelerate the energy transition, stating, "Considering the phased elimination of coal power, we must increase the pace of energy transformation and aim to deploy over 100 GW of renewable energy by 2030 while establishing a harmonious energy mix with nuclear power."
To expand renewable energy, the government plans to mandate solar panels on factory rooftops, significantly increase agricultural and floating solar power, and revise the settlement method for residential solar power to provide income in the form of a 'sunlight income pension.' The development of perovskite tandem cell technology, a next-generation solar cell, will also receive support.
Wind power and energy storage systems (ESS) will be expanded concurrently. Minister Kim stated, "To utilize renewable energy as a primary power source, we will significantly enhance long-duration energy storage systems such as pumped storage and sodium-ion batteries."
The government will also accelerate the electrification of transportation and buildings. Plans are being considered to establish subsidies for electric vehicle transitions and promote the electrification of delivery motorcycles, agricultural machinery, construction equipment, and ships. In residential buildings, heat pump systems will be expanded to replace gas piping for heating and hot water, and energy self-sufficient homes and communities combining solar power, electric vehicle charging, and AI appliances will be promoted.
The power grid will transition from a unidirectional supply system centered on the metropolitan area to a bidirectional system based on local production and consumption. The existing transmission network will be utilized as much as possible, and unavoidable sections will be undergrounded to enhance community acceptance. The renewable energy bidding market currently implemented in Jeju will be expanded to the demand market and eventually to the mainland.
The government is also working to strengthen energy independence in island regions. By 2030, 87 islands, including Ulleungdo, Baengnyeongdo, and Chuja-do, will be transformed into energy-independent islands based on 100% renewable energy, and plans are underway to establish a 345-kilovolt (kV) high-voltage transmission network to attract large-scale AI data centers.
Additionally, plans to expand water infrastructure were presented. Minister Kim explained that the Yongin and Gwangju semiconductor clusters require approximately 2 million tons of water daily, with over 1 million tons needing to be secured. To address this, new water sources will be secured, including the raising of the Dongbok Dam, and a system will be established to integrate dams operated for various purposes such as power generation, flood control, and agriculture. The metropolitan water supply system will be comprehensively overhauled, and the reuse of treated wastewater will be expanded for industrial use, while seawater desalination and mobile desalination facilities will also be enhanced.
Efforts will be made to recover waste heat generated in semiconductor processes to improve energy efficiency.
Minister Kim concluded, "Electricity is the source of civilization, and water is the source of life. We will timely expand the electricity and water infrastructure to ensure that mega-projects proceed without disruption."
* This article has been translated by AI.
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