This year's National Assembly audit by the Climate Energy Environment Labor Committee is expected to focus on the direction of the 12th Basic Plan for Electricity Supply and Demand. A key issue will be how to secure power for semiconductor and artificial intelligence (AI) data centers while determining the role of nuclear power and alternative energy sources following the planned phase-out of coal by 2040.
◆Nuclear Power Public Discourse Intensifies: Power Demand Forecast and Facility Plan Verification
According to the National Assembly and related ministries, the audit by the Climate Energy Environment Ministry is scheduled for October 6. Topics of focus will likely include the results of the public discourse on nuclear power, the reduction of coal power, the expansion of renewable energy, and the associated cost burdens.
The 12th Basic Plan for Electricity Supply and Demand serves as a blueprint for electricity policy from 2026 to 2040. To establish this plan, the Climate Ministry initiated public discourse on nuclear power on September 22. This process will not only address support or opposition to new nuclear plants but will also discuss the role of nuclear power in future electricity supply. A public discourse committee of up to 11 members and a citizen participation group will gather opinions over approximately three months and prepare recommendations.
During the audit, a key point of contention will be how the results of the public discourse will be reflected in the actual scale and construction timeline of nuclear facilities. Questions will arise regarding whether the information provided to the citizen participation group on power demand and costs by energy source is sufficient, and what the criteria for incorporating recommendations will be. There will also be interest in how supply stability and economic viability will be compared in discussions about the roles of nuclear and renewable energy.
Climate Minister Kim Sung-hwan previously announced the plan for public discourse on nuclear power, stating, "Through this discourse, we will listen to a variety of public opinions on the role of nuclear power and ensure that the results are faithfully reflected in future energy policies."
The appropriateness of the power demand forecast, which is the starting point for energy composition, will also be a subject of verification. Large-scale investment projects, such as semiconductor and AI data centers, may require power at different times and scales depending on their pace of development. Overestimating demand could lead to unnecessary investment burdens, while underestimating it could hinder the ability to supply power in line with corporate investment schedules.
Consequently, questions are expected regarding whether multiple scenarios reflecting delays or early execution of advanced industry investments have been prepared, and on what basis the appropriate reserve capacity and scale of new generation facilities have been calculated. The audit will also examine whether plans for facility expansion can be adjusted in response to discrepancies between forecasts and actual demand.
◆Coal Phase-Out by 2040: Alternative Energy and Transmission Network Issues
The impact of the planned phase-out of coal power by 2040 cannot be overlooked. If the schedule for reducing coal power and the operational timeline for alternative generation facilities do not align, supply capacity may be diminished. It is essential to consider the direction of nuclear power utilization and the pace of renewable energy deployment to develop strategies for filling the gap left by coal power.
During the audit, discussions are expected to cover the phase-out schedule for each generator, plans for securing alternative energy sources, and contingency measures in case of delays in constructing new facilities. The economic and employment impacts on local communities resulting from power plant closures, as well as strategies for transitioning state-owned power companies, will also be relevant topics.
Building transmission networks that connect expanded generation facilities to actual power supply is another critical issue. Even if power plants are secured, a lack of transmission infrastructure to deliver electricity to demand-heavy areas can create supply constraints. The audit will assess the completion timelines for delayed transmission projects, strategies for securing community acceptance, and the feasibility of connecting to industrial complexes in line with their establishment schedules.
Expanding renewable energy also requires a careful examination of deployment goals and grid capacity. The ability to utilize generated power effectively, along with energy storage systems (ESS) to compensate for fluctuations in generation due to weather and time of day, will be crucial.
Securing funding for investments in grid expansion and complementary facilities, such as energy storage systems, is also a challenge. The audit will address how to finance these investments, who will bear the costs, and the potential impact on electricity prices and the industrial sector.
* This article has been translated by AI.
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