Self-Generated Power Increased by 84% in Seven Years, Now 6.4% of Total Generation

Self-generated power has increased by over 80% in the past seven years. Last year, self-generated power exceeded 40,000 GWh, accounting for 6.4% of total generation. Notably, while total generation rose by 0.4% over the year, self-generated power surged by 4.5%.
 

On September 26, the Korea Power Exchange released its "2025 Survey of Self-Generated Power Companies," revealing that last year's self-generated power reached 40,908 GWh, a 4.5% increase from 39,156 GWh the previous year. During the same period, total domestic generation rose from 632,042 GWh to 634,320 GWh, a 0.4% increase. Consequently, the share of self-generated power in total generation increased from 6.2% to 6.4%.

Self-generated power refers to electricity produced for self-consumption rather than for sale. The survey targeted companies with self-generation facilities of 500 kW or more, with a total of 69 companies participating, the same as the previous year.

The scale of self-generation is expected to expand in the medium to long term. Self-generated power rose from 22,258 GWh in 2018 to 31,772 GWh in 2021. Although it dipped to 28,652 GWh in 2022, it rebounded to 34,437 GWh in 2023, 39,156 GWh in 2024, and reached 40,908 GWh last year, marking an approximately 84% increase compared to 2018.

The share of self-generated power in total generation also rose from 3.8% to 6.4% during the same period, an increase of 2.6 percentage points. The capacity of self-generated power facilities grew from 3,821 MW in 2018 to 6,764 MW last year, a nearly 77% increase. The utilization rate of these facilities was 69.0% last year, the highest level since 2018.

Self-generation is primarily concentrated in the manufacturing sector. Last year, self-generated power in manufacturing reached 40,666 GWh, accounting for 99.4% of the total. By sector, steel production led with 25,684 GWh, making up 62.8% of total self-generated power. Machinery followed with 8,608 GWh (21.0%), non-ferrous metals with 2,884 GWh (7.0%), and petrochemicals with 1,445 GWh (3.5%).

Sectoral changes varied. Non-ferrous metals saw a 29.0% increase in self-generated power, while machinery rose by 27.3%. Non-metallic minerals also increased by 16.4%. In contrast, steel production decreased by 3.0%, petrochemicals by 4.7%, and refineries by 0.5%. The share of steel production dropped from 67.6% in 2024 to 62.8% last year.

Looking ahead, self-generation capacity is expected to expand further. Based on the plans for new installations and retirements from the surveyed companies, self-generated power capacity is projected to slightly decrease from 6,764 MW last year to 6,749 MW in both 2026 and 2027, before increasing to 7,349 MW in 2028. Notably, one company plans to install a new 600 MW self-generation facility by 2028. If these plans are realized, the capacity in 2028 would represent an approximately 8.7% increase from last year.

The surveyed companies reported a decrease in externally supplied electricity. Their total electricity usage rose from 60,410 GWh in 2024 to 60,829 GWh last year, a 0.7% increase, but the amount supplied by KEPCO fell from 21,254 GWh to 19,920 GWh, a 6.3% decline. As self-generated power increased, the ratio of self-generated power to total electricity usage rose from 64.8% to 67.3%, an increase of 2.4 percentage points. However, the Korea Power Exchange noted that the actual ratio may be higher due to non-responses regarding KEPCO supply from some companies.

The Korea Power Exchange emphasized the importance of monitoring self-generation, as it is directly related to both short-term and long-term electricity supply and demand. Data on self-generated power facilities, generation volumes, and installation plans are essential for establishing basic electricity supply and demand plans and long-term electricity demand forecasts.