'Plans for Nuclear Power Expansion' Set... Initiation of the 11th Basic Electricity Plan Development

At the 4th Power Policy Deliberation Committee
Report on the '11th Basic Plan for Power Supply and Demand'
Final Plan to be Announced Around July Next Year

The government is initiating the formulation of the 11th Basic Plan for Electricity Supply and Demand to respond to the increase in electricity demand due to the expansion of new investments in advanced industries such as semiconductors and secondary batteries, data center construction, and the electrification of industry and daily life. Since the Yoon Seok-yeol administration has identified the 'abolition of the nuclear phase-out policy and strengthening of the nuclear power industry ecosystem' as a core national agenda, and recently has effectively formalized the promotion of 'new nuclear power plant construction,' it is highly likely that the 11th Basic Plan will include a 'nuclear power expansion plan.'

On the 18th, the Ministry of Trade, Industry and Energy held the '4th Electricity Policy Deliberation Committee Meeting of 2023,' attended by Lee Ho-hyun, the Director of Electricity Policy, and reported on the 'Direction for Promoting the 11th Basic Plan for Electricity Supply and Demand (2024?2038).'

The working group for the Basic Plan aims to precisely forecast long-term electricity demand using scientific methods in response to recent changes in conditions, and based on this, derive a power mix that harmonizes policy goals such as stability, efficiency, and carbon neutrality. An official from the Ministry of Trade, Industry and Energy explained, "In particular, while promoting zero-carbon power sources such as renewable energy and hydrogen, we will specifically review reasonable plans to expand power supply capacity by composing a cost-effective power mix including the introduction of new nuclear power plants. Plans for building power grids and storage systems adapted to changes in supply and demand conditions, as well as directions for electricity market reform, will also be included."

The core agenda of the 11th Basic Plan is expected to be the 'nuclear power expansion plan.' Earlier, at the Energy Committee meeting held on the 10th, Minister of Trade, Industry and Energy Lee Chang-yang officially announced the promotion of 'new nuclear power plant construction,' stating, "It is necessary to consider expanding new supply capacity through nuclear power and hydrogen to secure stable electricity supply capacity in preparation for demand growth."

The government anticipates an increase in electricity demand due to new investments in advanced industries such as semiconductors and secondary batteries, as well as the expansion of data centers and electric vehicles. Especially, with the upward revision of the 2030 Nationally Determined Contribution (NDC) for the energy sector by 4 million tons in March this year, the government holds the position that expanding the use of zero-carbon power sources, namely nuclear power, is inevitable to achieve this goal.

A government official said, "Electricity consumption is expected to increase due to the spread of semiconductors, secondary batteries, data centers, and electric vehicles, and the realistic way to achieve the NDC is to expand nuclear power. In the 10th Basic Plan finalized last January, the share of nuclear power was expanded to 32.4% by 2030, but in the 11th Basic Plan, this share will inevitably increase."

The 11th Basic Plan is expected to be finalized around July next year. Starting with the report and discussion at the Electricity Policy Deliberation Committee, expert committees such as the General Subcommittee will be formed and operated from the end of this month. Subsequently, the process will include drafting through expert discussions, strategic environmental impact assessments, consultations with related ministries, public hearings, and reporting to the National Assembly.

Meanwhile, at the same meeting, the '2024 Electricity Industry Infrastructure Fund Operation Plan (Ministry Proposal)' was also reviewed and approved. At this session, the Ministry of Trade, Industry and Energy announced that it will restructure the expenditure structure of the electricity fund focusing on projects that align with national agendas and the purpose of establishing the electricity fund. In particular, the ministry plans to ensure that the electricity fund is not concentrated in specific areas such as renewable energy, but is operated in accordance with the fund’s purposes, including strengthening the nuclear power ecosystem, supporting vulnerable groups, and research and development (R&D) in new energy industries.

Wolseong Headquarters exterior. (File photo) [Image source=Yonhap News]

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