Transition Committee: 13 Trillion Won Increase in Power Purchase Costs Over 5 Years of Moon Administration... "Major Shift Inevitable"

"Decrease in Nuclear Power Generation and Facility Utilization Rate"

On the afternoon of the 10th, Won Hee-ryong, the nominee for Minister of Land, Infrastructure and Transport, attended a press conference held by the Presidential Transition Committee in Tongui-dong, Jongno-gu, Seoul, where the appointments of ministerial candidates for eight ministries of the Yoon Suk-yeol administration were announced, and responded to reporters' questions. Photo by Transition Committee Press Photographers Group

The Presidential Transition Committee (Transition Committee) has once again launched a full-scale criticism of the Moon Jae-in administration's carbon neutrality policy. The Transition Committee's assessment is that Korea Electric Power Corporation's (KEPCO) electricity purchase costs increased by 13 trillion won over the past five years due to the Moon administration's nuclear phase-out energy policy. In response, the Transition Committee plans to break down feasible carbon neutrality policies and report them to President-elect Yoon Seok-yeol.

On the morning of the 12th, Won Hee-ryong, Chair of the Transition Committee's Planning Committee, held a briefing in Tongui-dong, Seoul, outlining the 'Yoon Seok-yeol Government's Carbon Neutrality Policy.' This was the first press conference since the Transition Committee's launch last month to announce policy directions related to carbon neutrality. He reiterated that the Moon administration's greenhouse gas and carbon neutrality policies have significantly lowered feasibility and only increased pressure on people's livelihoods, signaling a major revision ahead.

According to the analysis by the Transition Committee's 'Climate and Energy Team,' KEPCO's electricity purchase costs, which account for 80% of the total electricity tariff cost, increased by 13 trillion won over the five years of the Moon administration due to a decrease in nuclear power generation. Over the past five years, nuclear power generation declined by 3 percentage points, and the average utilization rate of existing facilities also dropped by 10.1 percentage points, resulting in increased electricity purchases from higher-cost sources such as renewable energy and LNG power generation. In particular, additional expenditures due to the early closure of Wolseong Unit 1 and delays in the completion of Shin Hanul Units 1 and 2 were revealed to be close to 5 trillion won.

Along with this situation, the Transition Committee pointed out that if the Moon administration's carbon neutrality scenario, including a 70% share of new renewable energy by 2050, is pursued as is, annual electricity rate increases of 4 to 6% until 2050 will be inevitable.

Accordingly, the Transition Committee plans to create a 'feasible carbon neutrality policy plan' centered on an energy mix composition based on the harmony of renewable energy and nuclear power and strengthened demand management, and report it directly to President-elect Yoon. This includes the harmony of renewable energy and nuclear power, demand management, breakthrough development of green technology, expansion of third-party market participation in carbon emission rights, strengthening climate and energy alliances with major countries such as the United States, and restructuring strategies for carbon neutrality, green growth, and governance.

Chair Won emphasized, "Despite the change of administration, the stance that Korea will actively participate in the global goal of carbon neutrality cannot be changed. However, the tentative conclusion is that a major revision of the policy mix is inevitable to offset the negative economic ripple effects and pressure on people's livelihoods."

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