[Reporter’s Notebook] The Truth About Electricity Costs at Government-Funded Research Institutes: The Rich Get Richer, the Poor Get Poorer

Large Government-Funded Research Institutes Face Electricity Cost Concerns, But Reality Differs
Support Needed for Small and Medium-Sized Institutes Lacking Self-Sufficiency

The electricity cost burden for government-funded research institutes (GFRIs) in the field of science and technology has increased by more than 50% compared to three years ago.

Hwang Jeong-ah, a member of the National Assembly's Science, Technology, Information and Broadcasting Communications Committee from the Democratic Party, examined the electricity bills paid by 24 science and technology GFRIs from January to July this year and found the total to be 61.47 billion KRW. This averages to about 8.78 billion KRW per month. During the same period in 2021, the average monthly electricity cost was 5.68 billion KRW, meaning the burden has increased by 54.5% in three years.

The electricity demand of GFRIs possessing fusion facilities and supercomputers, such as the Korea Atomic Energy Research Institute, the Korea Institute of Fusion Energy, and the Korea Institute of Science and Technology Information (KISTI), has had a significant impact.

The sharp increase in electricity costs poses a budgetary burden for the GFRIs, as the proportion of electricity expenses grows within limited budgets. However, the GFRIs identified as having large-scale electricity expenditures remain indifferent. One official stated, "The electricity costs for large facilities owned are not part of operating expenses but research expenses." The Ministry of Science and ICT also explained, "Electricity costs for research facilities with ultra-large equipment at GFRIs are classified as major project expenses." Last year, the Ministry additionally provided 8.7 billion KRW in research budget support to alleviate the electricity cost burden. This indicates that the funding sources for electricity used in research and general office spaces differ. These institutions are evaluated to have sufficient capacity to bear electricity costs beyond government support due to their substantial internal revenues.

The problem lies with GFRIs that have a small proportion of research expenses and low income from technology fees and government commissioned projects. These institutions are directly hit by the electricity cost burden. Since they heavily depend on government budgets, their electricity cost burden is relatively high. To save on electricity costs needed for facility management beyond research equipment, some small-scale GFRIs reportedly reduced nighttime work by cutting back on air conditioning during the summer.

A representative example is the Korea Astronomy and Space Science Institute (KASI), where Assemblywoman Hwang was affiliated. KASI, under the Aerospace Administration, has government funding accounting for nearly 90% of its total budget. KASI explained that due to the nature of its research, it has no income from technology fees. This contrasts sharply with the Korea Aerospace Research Institute, also under the Aerospace Administration, where government funding accounts for about 10% of its budget.

According to Assemblywoman Hwang's office, the operating expenses of GFRIs this year amount to 81.53 billion KRW, which is about 8 billion KRW less than three years ago. Although the government has promised to relax regulations on GFRIs and grant them autonomy, this remains a distant matter for GFRIs lacking sufficient internal resources. GFRIs are dedicated to research and development (R&D) with a sense of mission to secure the nation's future. At the very least, the government needs to guarantee funding sufficient to ensure they do not have to worry about electricity costs.

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