KHNP Withdraws from 'Gori Wind Power' Project... 'Renewable Energy Experiment' Ends in Failure

'Gori Wind Power' Project Halted... Demolition Costs '400 Million Won'
Operation Started in 2008... Designed Lifespan Until 2028
Annual Utilization Rate 6.2%... KHNP Expected 19.2%
'Negative Margin' Structure Solidified... 910 Million Won Deficit Over Last 10 Years

Korea Hydro & Nuclear Power's Gori Wind Turbine installed at the Gori Nuclear Power Plant in Gijang-gun, Busan.
[Photo by Korea Hydro & Nuclear Power]

[Asia Economy Sejong=Reporter Lee Jun-hyung] Korea Hydro & Nuclear Power (KHNP) is halting the Gori wind power project. The wind power project turned out to be less economically viable than initially expected, resulting in a negative margin structure where losses accumulate the more it operates. The dismantling of the Gori wind turbines is expected to cost about 400 million KRW.

According to related ministries on the 7th, KHNP decided at the end of last month to dismantle the Gori wind turbines early. It has been 14 years since the Gori wind turbines began operation in 2008. Originally, KHNP planned to operate the Gori wind turbines until 2028.

The Gori wind turbines were the first wind power facilities established by KHNP within a nuclear power plant site. In 2008, KHNP built wind turbines at the Gori nuclear power plant site in Gijang-gun, Busan, and started operation the same year. At that time, KHNP expected the Gori wind turbines to produce 1.2 million kW of electricity annually, supplying power to about 400 households.

However, the reality differed from KHNP’s expectations. The average annual utilization rate of the Gori wind turbines was 6.2%, only 32.3% of the expected utilization rate (19.2%). This was due to the average annual wind speed at the Gori wind turbine site being 3.5 m/s, about 30% of the rated wind speed (11.5 m/s). The rated wind speed is the minimum wind power required to generate power in the turbine motor.

Frequent equipment failures also contributed to the early dismantling decision. The Gori wind turbines broke down 89 times from the end of 2010 until last May. Previously, the turbines stopped operating in September 2020 due to motor failure. However, KHNP was unable to restart the turbines for over two years due to difficulties in procuring motor parts.

Given these circumstances, the negative margin structure, where losses increase the longer it operates, became entrenched. Examining the profit and loss of the Gori wind turbines over the past 10 years shows a deficit of 910 million KRW. Operating costs amounted to 1.26 billion KRW, while revenue from electricity production was only 350 million KRW. KHNP estimates that if the turbines were operated for their designed lifespan, an additional loss of 520 million KRW would accumulate over six years from next year until 2028.

Meanwhile, KHNP plans to invest about 400 million KRW in dismantling the Gori wind turbines. A KHNP official explained, "(The Gori wind turbines) are no longer operable under normal conditions," adding, "Continuing operation would accumulate losses, so we judged that discontinuing operation is appropriate."

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