Energy Security Shaken by Ukraine Crisis... No Better Alternative Than Nuclear Power Plants [Collapsed Nuclear Ecosystem⑦]

Surge in Crude Oil and LNG Prices
Higher Production Costs for Thermal Power
Resumption of Shin Hanul Units 3 and 4 Construction
Reevaluation of Continued Operation of Gori Unit 2
Prioritize Experts, Exclude Political Appointees
Full Support for Next-Generation Nuclear R&D

The Presidential Transition Committee has instructed the Ministry of Trade, Industry and Energy, the main government agency responsible for energy, to review the resumption of construction for Shin Hanul Units 3 and 4. This marks the first step in the ‘restoration of the nuclear power ecosystem,’ utilizing nuclear power as the main base-load power source, in line with President-elect Yoon Suk-yeol’s campaign promises. The background of the transition committee’s nuclear-centered energy policy lies in the global spread of an energy security crisis due to the prolonged COVID-19 pandemic and the Ukraine conflict. The surge in crude oil and liquefied natural gas (LNG) prices, along with disruptions in the global supply chain of mineral resources, have ultimately led to inflation, directly impacting consumers. This is why nuclear power, which offers low production costs and stable supply, is gaining renewed support worldwide, not only in South Korea but also among major countries such as the European Union (EU) and the United States.

Surge in Oil and Natural Gas Prices... Nuclear Power Rises Amid Burden on Thermal Power Production

According to global market research firm Trading Economics on the 25th, Brent crude oil, the international benchmark, was priced at $118.6 per barrel as of the previous day, a 77.7% increase compared to $66.74 a year ago. During the same period, natural gas prices also surged by 115.8%, reaching $5.436 per 1 MMBtu (energy unit) compared to $2.518 the previous year.

This rise is due to concerns that the EU may consider banning imports of Russian oil, causing international oil prices to climb again. The unstable raw material supply chain has also caused LNG prices to fluctuate. LNG prices, which were $413.71 per ton in January last year, soared to $1,136.68 at the beginning of this year, a 2.7-fold increase in just one year. This is because Russia, cornered by economic sanctions following its invasion of Ukraine, weaponized energy to pressure Western countries.

The problem is that, due to the government’s previous policy of phasing out nuclear power, the reduction in nuclear power production has been replaced by thermal power generation, which has higher production costs, thereby worsening the profitability of power companies. According to Korea Electric Power Corporation’s ‘Monthly Electricity Statistics Report,’ the electricity purchase price as of January was 138.3 KRW per kWh, a 50.6% increase compared to a year earlier. The transition committee’s order to promptly resume construction of Shin Hanul Units 3 and 4 and to reconsider the continued operation of Kori Unit 2, whose operating license expires in April next year, to strengthen nuclear power as base-load generation, is based on this context.

[Image source=Yonhap News]

New Government’s Nuclear Policy Should Be Led by an Expert-Centered ‘One Team’

To establish a new energy policy centered on nuclear power, it is crucial to exclude so-called parachute appointments who are non-experts and instead form a ‘one team’ led by nuclear power experts. To achieve the optimal cost and maximum effect across nuclear, thermal, and renewable energy sectors, experts from each field must develop plans to appropriately allocate and utilize the energy mix.

Professor Lee Hyun-chul of the Department of Mechanical Engineering at Pusan National University advised, “The reason experts are needed when establishing a national energy plan is deeply related to the characteristics of energy. To utilize an energy mix that balances the three attributes of energy?environmental friendliness, economic efficiency, and supply stability (energy security)?it is essential to secure experts in each field.”

There are also calls for a significant increase in research and development (R&D) funding to support next-generation nuclear power development and base-load power generation.

Professor Yoo Seung-hoon of the Department of Energy Policy at Seoul National University of Science and Technology said, “Along with the resumption of construction for Shin Hanul Units 3 and 4, one of the most important aspects is the full-scale R&D support for the development of small modular reactors (SMRs), which are gaining attention as next-generation nuclear power.” He added, “For the government to meet the 2030 Nationally Determined Contribution (NDC) for greenhouse gas reduction, technological development must be expedited.” SMRs are small nuclear power plants with a generation capacity of about 300 MW. They have shorter construction periods and can reduce costs, but the development of the ‘Korean Innovative Small Modular Reactor (i-SMR)’ is currently sluggish.

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