South Korea Plans to Phase Out Coal Power by 2040

The South Korean government is considering a plan to gradually retire 21 coal power plants with remaining lifespans between 2037 and 2039 as part of its goal to phase out coal by 2040. Among these, up to 10 plants may be designated as 'security power sources' to be used in emergencies before being phased out sequentially.

On September 18, Kim Jin-soo, a professor at Hanyang University’s Department of Resource and Environmental Engineering, presented the '2040 Coal Power Phase-Out Policy' at the 12th public forum for establishing the basic electricity supply plan, held at the Korea Electric Power Corporation's Nam Seoul headquarters in Yeongdeungpo, Seoul. He explained that the proposal is not a final decision but a starting point for future discussions.

Currently, there are 60 operational coal power plants in South Korea, with a total capacity of approximately 39.5 gigawatts (GW). Of these, 39 plants reaching their 30-year design lifespan are set to be retired by 2038, while the remaining 21 plants (19.1 GW) are targeted for early retirement by 2040.

Initially, 27 plants (13.6 GW) that will reach the end of their design lifespan by 2036 will be replaced with LNG power plants, in accordance with the existing electricity supply plan. Among these, the Yeongheung Units 1 and 2 will be replaced with LNG plants located in the metropolitan area to strengthen power supply, while the Dangjin Units 5 and 6 will be considered for placement in the Honam region as part of the Southwest Mega Project.

The remaining 12 plants (6.79 GW) scheduled for retirement between 2037 and 2038 are proposed to be replaced with pumped storage power. Currently, 13 pumped storage projects are planned, totaling 7.5 GW. However, the scale of replacement will be determined based on economic feasibility.

The 21 plants with remaining lifespans will be retired in phases from 2037 to 2039. The decision to retire all 21 plants at once in 2040 could significantly reduce large-scale supply capacity, placing a burden on power supply and grid operations. The phased retirement will be assessed based on available capacity and the stability of power supply and grid operations.

To incentivize early retirement, operators may receive preferential treatment in bidding for new power projects, such as battery energy storage systems (BESS). If local acceptance is secured, there are also plans to convert coal plant sites to small modular reactors (SMR) and to transition some private power plants to LNG combined heat and power, considering heat demand.

Among the remaining 21 plants, up to 10 may be retained as 'security power sources.' The designation will be based on the performance of the plants and their contribution to the grid, with specific plants to be confirmed in the next electricity supply plan rather than the current one.

Security power sources will be categorized into 'reserve power' and 'strategic preservation' types. Reserve power will maintain a state of readiness for peak loads or reduced renewable energy utilization, while strategic preservation will keep minimal staffing for long-term retention in case of power supply crises, such as LNG supply instability or soaring oil prices.

Kim emphasized, "We should not simply designate security power sources. We aim to apply carbon reduction measures, such as carbon capture, utilization, and storage (CCUS), for power sources that require periodic activation."