Coal Power Generation Material Local Governments Alliance "Urging Enactment of Special Law for Government Support"

[Asia Economy (Hongseong) Reporter Jeong Il-woong] Four cities and provinces nationwide are raising their voices to urge government support for regions where coal-fired power plants are being phased out.

On the 31st, Chungnam Province announced that it held a ‘Department Head Policy Meeting’ together with Incheon City, Jeonnam Province, and Gyeongnam Province at the Cheonan-Asan KTX Station (Creative Economy Innovation Center).

The meeting was organized to bring together officials from the four cities and provinces to share the necessity and justification for enacting the ‘Special Act on Support for Regions Phasing Out Coal-Fired Power Plants’ and to explore solidarity measures among metropolitan local governments to urge the enactment of the special law.

According to the province, out of the 58 coal-fired power plants nationwide, 29 are located in Chungnam, including Boryeong and Dangjin; 14 in Gyeongnam; 7 in Gangwon; 6 in Incheon; and 2 in Jeonnam.

Coal-fired power plants have long been recognized as a core energy source, accounting for 34.2% of domestic power generation.

However, recently, as coal phase-out policies for carbon neutrality have accelerated, cases of coal-fired power plants being shut down are increasing.

In fact, the government decided on November 1, 2019, to prematurely close Boryeong Thermal Power Units 1 and 2. Additionally, according to the ‘10th Basic Plan for Electricity Supply and Demand,’ a plan has been established to sequentially close 28 out of 58 thermal power plants nationwide by 2036.

The problem is that coal-fired power plant closures are being pursued without alternatives prepared for the regions where these plants are being shut down.

For example, Chungnam, which has the highest concentration of coal-fired power plants, has endured environmental damage from fine dust for decades, along with sacrifices such as transmission lines totaling 6,091 km in length and large transmission towers in daily life, yet appropriate compensation has not been provided, according to the province.

Moreover, the damage from coal-fired power plant closures is expected to result in a decrease of 19.2 trillion KRW in induced production, 7.8 trillion KRW in induced added value, and 7,600 jobs. While the plants were operational, the region bore environmental damage; now, with closures, it must shoulder economic damage.

Regarding this, the province stated that since there are limits to local governments solving issues such as industrial structure transformation for carbon neutrality and employment support for coal industry workers, national-level support is necessary.

The special law focuses on supporting the process of overcoming economic crises caused by regional economic contraction, employment crises, and population decline in areas scheduled for coal-fired power plant closures.

The four cities and provinces, including Chungnam, agreed to cooperate mutually to prepare comprehensive measures to ensure consistent support through the special law.

Yoo Jae-ryong, Director of the Industrial Economy Office of the province, said, “We will lead consistent support from central government ministries through solidarity among local governments and ensure that the enactment of the special law to support regions phasing out coal-fired power plants is implemented through continuous legislative advocacy.”

Meanwhile, Germany established and operated a Coal Commission under the federal government in 2018 and enacted and implemented the Coal Phase-Out Act and the Coal Region Structural Reinforcement Act.

According to these laws, Germany plans to provide 40 billion euros (about 56 trillion KRW) in support to four coal regions by 2038.

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