The government is accelerating mega projects centered around semiconductors and artificial intelligence (AI) data centers, but concerns about power supply are growing. These large-scale projects require substantial electricity, yet the infrastructure for generation and transmission is lacking.
As a result, there is a strong possibility that additional nuclear power plants will be included in the 12th Basic Plan for Power Supply and Demand, which the government plans to establish by the end of the year. A comprehensive reassessment of the existing power mix is also expected.
Stable Power Supply Essential for Semiconductor and Data Center Projects
According to relevant government departments, the estimated power demand for the semiconductor cluster and AI data center being developed in the southwestern region is 24.7 gigawatts (GW), with 6.3 GW needed for the semiconductor cluster and 18.4 GW for the AI data center.
This demand represents about a quarter of the maximum power demand of 98.8 GW projected by the Ministry of Environment and Energy for this summer. Given that the APR1400, a Korean-designed nuclear reactor developed by Korea Hydro & Nuclear Power, has a generation capacity of approximately 1.4 GW, there will be a need for an additional 18 reactors.
Consequently, it is highly likely that the additional power demand will be included in the upcoming 12th Basic Plan. The government is expected to announce the plan, which will outline the direction for power demand and generation capacity expansion through 2040, later this year.
The preliminary forecast for the 12th Basic Plan, released in April, projected the maximum power demand for 2040 to be between 131.8 GW and 138.2 GW, indicating a need for an additional 2.5 to 8.9 GW of capacity. However, with the announcement of mega projects, existing forecasts are likely to be revised upward.
Additionally, the characteristics of semiconductor factories and AI data centers must be taken into account. Since a stable power supply is essential, it is difficult to rely solely on variable renewable energy sources. The government has indicated that it will pursue not only the early achievement of 100 GW of renewable energy by 2030 but also the use of nuclear power, small modular reactors (SMRs), energy storage systems (ESS), and thermal power generation, reflecting this pragmatic approach.
Limits of Renewable Energy Highlight Need for New Nuclear Power Discussions
The extent to which new nuclear power plants will be incorporated into the 12th Basic Plan is a key issue. The 11th Basic Plan included two large nuclear reactors and one SMR, with new sites recently selected in Yeongdeok, Gyeongbuk, and Gijang, Busan. As securing power for mega projects becomes a prerequisite, there is a strong possibility that new nuclear plants will be added to the 12th Basic Plan.
Kim Sung-hwan, Minister of Climate, recently stated on MBC Radio's 'Kim Jong-bae's Focus' that "we can build more reactors at existing sites without needing to find new locations," mentioning the Hanbit Nuclear Power Plant in Jeollanam-do and the Saeul Nuclear Power Plant in Ulsan. Adding two reactors at these sites could meet over 5 GW of power demand.
However, constructing new nuclear plants requires significant time. The process involves site selection, securing community acceptance, obtaining permits, conducting environmental and safety assessments, and construction. The government believes that adding reactors at existing sites could reduce administrative procedures and shorten the construction period to about seven years.
There is also interest in how much the share of nuclear power will increase in the energy mix. The semiconductor cluster and AI data centers are representative of high electricity-consuming facilities that operate 24/7. Therefore, it is likely that the proportion of stable nuclear power and SMRs will increase. Ultimately, there is a growing argument for establishing a realistic energy mix that can meet the power demands of advanced industries while maintaining carbon neutrality in the 12th Basic Plan.
* This article has been translated by AI.
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