[Back to Nuclear] Fierce Competition to Attract New Plants at Home... "Let's Build Nuclear Power" Sparks a Second Boom Abroad

Nuclear Power Generation Costs Reconsidered Amid Middle East Crisis
Ulsan, Yeongdeok Compete to Attract New Nuclear Plants... Regional Rivalry Over SMR Projects
Expectations Rise for Nuclear Industry Ecosystem After Dukovany Contract in the Czech Re

View of construction of Saeul nuclear power plants Units 3 and 4. Photo by Yonhap News Agency

As uncertainty in the international energy market grows due to the situation in the Middle East, nuclear power is once again emerging as a key energy source. It is being reevaluated as the "bulwark of energy security" that can address both the challenge of carbon neutrality and price competitiveness in an era of high oil prices.

"With oil prices soaring, nuclear power proves invaluable"... Highest share in 15 years

The primary reason for renewed attention to nuclear power is its overwhelming "price competitiveness." Since nuclear power plants have a low proportion of fuel costs, they are less affected by fluctuations in international oil or liquefied natural gas (LNG) prices. This makes nuclear power the most powerful option for maintaining stable electricity production costs even amid energy crises.

Nuclear power's presence in the domestic electricity market is unrivaled. According to the Korea Power Exchange, the share of electricity generated by nuclear power recently reached around 32%, surpassing both LNG and coal to become the top power source. This is the highest level in 15 years, demonstrating the strategic value of nuclear power in terms of energy security.

"Build in our neighborhood"... Local governments expect "trillion-won" economic impact

Nuclear power plants, once regarded as undesirable facilities, have now become "saviors of the regional economy" that local governments are actively competing to attract. As Korea Hydro & Nuclear Power prepares to solicit bids for new nuclear plant sites, local governments are fiercely vying for selection. The projects at stake include two large-scale nuclear power plants and one small modular reactor (SMR). Ulsan's Ulju County, which already has existing infrastructure, and Yeongdeok County in North Gyeongsang Province, where a previous construction plan had been suspended, are both showing strong interest in hosting the large-scale plants. For the SMR, Gyeongju in North Gyeongsang Province and Gijang County in Busan have joined the race to secure next-generation technology leadership.

The rationale behind this proactive stance from local governments is clear. The trillions of won invested in constructing just one nuclear power plant are directly linked to local job creation and revitalizing the industrial ecosystem. The economic ripple effect generated by maintenance personnel stationed at the plant throughout its operational period is also a significant advantage that cannot be overlooked.

Nuclear power as leverage for U.S. investment and trade

The passage of the Special Act on Investment in the United States has paved the way for a total of USD 350 billion in investment in the United States. Among Korea's top candidate projects for this investment are the construction of an LNG export terminal and new nuclear power plants. While the United States, led by Westinghouse, possesses unrivaled nuclear design technology, it is evaluated as having less construction capability and equipment supply capacity compared to Korea.

Potential sites for nuclear power cooperation identified in the U.S. include the Texas Hypergrid Project, the Michigan small modular reactor (SMR) project, the Tennessee SMR commercialization project, and the southeastern nuclear belt. Former President Trump has also announced plans to commence construction of 10 large nuclear power plants by 2030.

Nuclear power bidding war in Europe, Vietnam, and the Philippines

Recently, "Team Korea," led by Korea Hydro & Nuclear Power, won the CZK 2.6 trillion (approximately KRW 26 trillion) Dukovany Nuclear Power Plant project in the Czech Republic, reaffirming the competitiveness of Korean nuclear technology. This project is expected to go beyond merely building a power plant and serve as an opportunity to expand the export potential of the domestic nuclear industry. Doosan Enerbility achieved a major milestone by signing a main equipment supply contract worth about KRW 5.6 trillion for the project. Korea Electric Power Corporation Engineering & Construction Company, in charge of nuclear plant design, and KEPCO KPS, responsible for plant maintenance, are also participating, forming an integrated industrial ecosystem.

Other companies such as Woojin, LS ELECTRIC, Hyosung Heavy Industries, and BHI are also joining the nuclear power supply chain as providers of instrumentation, electrical equipment, and plant facilities. Since numerous companies participate in the construction of a single power plant, the expansion of nuclear power orders is considered to have a significant ripple effect across related industries. The industry is also paying close attention to the potential for further expansion into the European market in light of the Czech project.

In addition to Dukovany, the Czech Republic is considering additional construction at the Temelin nuclear power plant. The industry is also setting its sights on the Philippines nuclear power market. On March 4, Korea Hydro & Nuclear Power, Export-Import Bank of Korea, and Meralco—the largest power distributor in the Philippines—signed a tripartite memorandum of understanding (MOU) for cooperation on a new nuclear power project. This collaboration is drawing attention as an integrated model combining Korea Hydro & Nuclear Power's experience in nuclear construction and operation, Export-Import Bank's financial support capabilities, and Meralco's local power business experience.

Moon Juhyun, professor of Energy Engineering at Dankook University, stated, "Europe suffered greatly as energy prices soared after dependence on Russian gas, and that experience has led to renewed consideration of nuclear power." He added, "In some countries, electricity rates have risen so much that it is difficult for people to afford daily living without lowering energy prices." He continued, "In this situation, nuclear power—which can provide a stable electricity supply—inevitably comes back into consideration, and the trend of revisiting nuclear power due to energy security and price issues is now emerging globally."

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