Nuclear Power Generation Jumps 15% in January

Increase of 16,103 GWh in Total
Surpasses LNG to Rank 2nd in Power Generation

In January of this year, domestic nuclear power generation in South Korea increased by nearly 15% compared to the previous year, surpassing liquefied natural gas (LNG) and ranking second in power generation after coal. This rise is attributed to the global surge in prices of key raw materials such as LNG and oil since the second half of last year, leading to an increase in relatively cheaper nuclear power generation.

According to the Monthly Electricity Statistics Report by Korea Electric Power Corporation (KEPCO) on the 14th, South Korea's total power generation in January was 54,792 GWh (gigawatt-hours), up 3.19% from the same period last year. During this period, nuclear power generation totaled 16,103 GWh, a sharp increase of 14.6% compared to 14,042 GWh in the same period last year. Coal power generation, which ranked first overall, increased by only 3.1% to 18,362 GWh, while LNG power generation decreased by 11.7% to 15,252 GWh, showing a contrasting trend.

The share of nuclear power in total power generation by energy source also rose to 29.4%, up 3.0 percentage points from 26.4% in the same period last year, making it the second highest after coal (33.5%).

The increase in nuclear power generation this year is closely linked to the sharp rise in LNG prices due to the global surge in raw material prices since the second half of last year. As the production cost of LNG power generation increased, nuclear power generation was expanded to replace it. As of this month, the average import price of LNG surged 27.35% month-on-month to $1,136.68 per ton.

The purchase price of electricity generated by nuclear power plants for KEPCO is also on the rise. In January, the purchase price per 1 kWh of electricity produced through nuclear power was 61.61 won, up 21.7% from the previous month. The nuclear power purchase price hit its lowest point in the past year at 32.84 won in September last year and has been rising for four consecutive months since then.

There are also forecasts that if Russia's invasion of Ukraine prolongs, domestic nuclear power generation could increase further due to rising energy production costs. However, the rise in uranium prices, the raw material for nuclear power, remains a key variable. According to UxC, a market research and analysis company for nuclear fuel, the market benchmark uranium price ‘Ux U308’ recently rose to $59.75 per pound, marking the highest level since the 2011 Fukushima nuclear accident in Japan.

Professor Jeong In-gyo of Inha University's Department of International Trade said, "If sanctions against Russia continue for a considerable period due to the Ukraine situation, the high energy prices are inevitable," adding, "In this case, increasing the share of nuclear power generation, which has the lowest energy production cost, could be a rational choice."

Shin Hanul Units 1 and 2

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