Government: "Temporary Extension of Shin Hanul Units 3 and 4 Project Permits... Does Not Mean 'Resumption'" (Update)

Site view of Shin Hanul Units 3 and 4. (Photo by 자료)

[Sejong=Asia Economy Reporters Haeyoung Kwon and Sangdon Joo] The construction plan approval period for Shin Hanul Nuclear Power Plant Units 3 and 4 has been extended until December 2023. This measure aims to prevent disadvantages to the operator, Korea Hydro & Nuclear Power (KHNP), in case the project permit is canceled. The Yeongdeok Cheonji Nuclear Power Plant is moving toward the final step of cancellation, including the administrative notice of designation withdrawal.

The Ministry of Trade, Industry and Energy announced on the 22nd that it made this decision at the 22nd Energy Committee held at the Korea Trade Insurance Corporation in Seoul.

An official from the Ministry of Trade, Industry and Energy explained, "The extension period is not intended to resume the project but to prevent disadvantages to the operator, KHNP, in case the project permit is canceled. It is a temporary maintenance of the project permit until a system for smooth project termination is established."

After acquiring the permit for the Shin Hanul Units 3 and 4 power generation project (February 27, 2017), KHNP found it difficult to obtain construction plan approval within the legal deadline (February 27, 2021) due to the energy transition policy. Therefore, on the 8th of last month, KHNP applied to the Ministry of Trade, Industry and Energy for an extension of the construction plan approval period. If the permit for the Shin Hanul Units 3 and 4 power generation project is canceled, KHNP will be unable to acquire new power generation project permits for two years. Also, until separate administrative measures, legislation, or related laws for cost compensation are established regarding the power generation project permit, maintaining the permit is necessary.

Accordingly, the Ministry judged that since KHNP failed to obtain construction plan approval within the deadline due to the energy transition policy without any fault of its own, it is reasonable to extend the construction plan approval period instead of canceling the project permit. Considering that this is not for project resumption but to prevent disadvantages to the operator and to ensure smooth project termination, the construction plan approval period was set until December 2023, as requested by KHNP.

On the same day, the Ministry announced an administrative notice regarding the withdrawal of the designation of the Yeongdeok Cheonji Nuclear Power Plant power development project area. The Ministry plans to complete the administrative notice by the 14th of next month and, after review and resolution by the Power Development Project Promotion Committee, officially announce the withdrawal of the designated area.

Previously, after the 2017 Energy Transition Roadmap that scrapped new nuclear power plant construction plans and the announcement of the 8th Basic Plan for Electricity Supply and Demand, KHNP decided to terminate the Yeongdeok Cheonji Nuclear Power Plant project through its board resolution in June 2018. Subsequently, in July of the same year, KHNP applied to the Ministry for withdrawal of the designation of the Cheonji Nuclear Power Plant power development project area. The Ministry explained that Yeongdeok County also hoped for the withdrawal of the designated area after a considerable period following KHNP's project termination decision, due to concerns about development restrictions and delays in other regional support projects.

This content was produced with the assistance of AI translation services.