[Exclusive] "Coal Power to Be Designated as Security Power Source"... Special Act to Include Provision [Digging Energy]

"Coal Power to Be Designated as Security Power Source if Needed"

Ministry of Climate, Energy and Environment Presents Revised Proposal to Parliamentary Subcommittee

Criteria, Procedures, Compensation, and Support to Be Defined in Subordinate

Panoramic view of Boryeong Thermal Power Units 1 to 8 (the third building from the left is Boryeong Thermal Power Unit 3)

With fossil fuel prices surging due to the war between the United States and Iran, coal power generation is increasing, particularly across Asia. Countries that had previously reduced coal-fired power generation to lower greenhouse gas emissions are now recognizing its importance in times of crisis. South Korea, which had planned to shutter all coal-fired power plants by 2040, has also begun to view coal-fired generation as a security power source.

According to the National Assembly and the government on April 26, the Ministry of Climate, Energy and Environment recently proposed a revised alternative to the Climate, Energy and Environment Bill Review Subcommittee of the National Assembly, which is currently discussing the "Special Act on Support for Regions with Abolished Coal-Fired Power Plants" (Special Act on Coal Power). The proposal states, "If the Minister of Climate, Energy and Environment recognizes that, based on the analysis of power system impacts, it is necessary to ensure the reliability and stability of electricity supply and the grid, the minister may, instead of approving the abolition plan, designate the coal-fired power generator as a security power generator or order necessary actions such as extended reliable operation."

The subcommittee gave a positive evaluation, stating in its review opinion, "The government’s revised proposal, which provides a legal basis for designating security power generators (cold reserve), appears to be necessary as a legislative policy."

This bill aims to minimize economic damage and job losses in regions where coal-fired power plants are phased out, and to foster alternative industries. In the current session of the National Assembly alone, as many as 17 legislative bills have been introduced. These bills are being consolidated and discussed together with the government’s revised proposal in the subcommittee.

According to the government’s 11th Basic Plan for Electricity Supply and Demand, 28 coal-fired power plants are scheduled for closure by 2036. The ministry’s policy has been to close all coal-fired power plants by 2040.

However, after the outbreak of the U.S.-Iran war at the end of February and the subsequent blockade of the Strait of Hormuz, fossil fuel prices for oil and natural gas have soared, and supply shortages have occurred, leading to a gradual shift in policy direction.

Kim Sung-hwan, Minister of Climate, Energy and Environment, stated during a cabinet meeting on April 6, "We plan to establish a phase-out plan that minimizes transition costs, including utilizing the 21 remaining coal-fired power generators after 2040 as security power sources."

This policy direction is now being formalized through the establishment of the Special Act on Coal Power.

Kim Sung-hwan, Minister of Climate, Energy and Environment, is announcing the plan to promote the major energy transition on April 6 at the Government Seoul Office Annex in Jongno-gu, Seoul. 2026.4.6 Photo by Jo Yong-jun

According to the subcommittee meeting minutes, Assemblywoman Kim Sohee of the People Power Party proposed, "Given that over 90% of our energy sources are imported, a cold reserve system that can respond to emergency power supply situations after decommissioning, as seen in international cases and as requested by labor circles, should be included in the bill."

The ministry responded, "We are carefully reviewing measures such as the cold reserve system, which would allow for flexible use of existing infrastructure in emergencies or natural disasters, under a principle of minimizing costs," and presented a revised alternative including the concepts of security power generators and extended reliable operation.

The government's concept of security power generators is broader than that of cold reserve.

In the power generation industry, cold reserve refers to facilities that are disconnected from the grid and stopped, but are kept on standby for emergency reactivation. Security power generators encompass not only cold reserve but also the actual operation of generators.

"Condition: Reduction of Greenhouse Gas and Air Pollutant Emissions"

The government's consideration of security power generators, rather than just cold reserve, is based on economic and efficiency factors. Since maintaining generators in standby mode still incurs operating costs, it is judged to be more cost-effective to operate them and produce electricity.

Lee Unho, Executive Vice President of the Private Power Association, explained, "Even in cold reserve, regular maintenance crews need to be deployed, so it costs about one-third of normal operation."

This raises questions about how many of the 21 coal-fired generators remaining after 2040 will be designated as security power sources, how they will be operated, and how compensation and support systems will function.

The specific details are expected to be outlined in subordinate regulations under the Special Act on Coal Power. In the revised proposal, the government suggested, "The designation criteria, procedures, compensation and support, operational standards, maintenance obligations, designation period, and extension procedures for security power generators and extended reliable operation shall be prescribed by Presidential Decree."

If coal-fired power generation is utilized as a security power source, maintaining consistency with the government’s 2050 carbon neutrality policy will be an issue. In November last year, the Lee Jaemyung administration joined the Powering Past Coal Alliance and expressed a strong commitment to coal power phase-out to the international community.

Regarding this, a ministry official said, "Coal-fired generators designated as security power sources will be required to install Carbon Capture, Utilization, and Storage (CCUS) facilities or take other measures to reduce greenhouse gas and air pollutant emissions. The specific procedures will also be stipulated in the legal framework."

However, in the National Assembly, some have pointed out that a separate legal framework may be needed if coal-fired generators are to be used as security power sources. Assemblywoman Kim Sohee stated, "Since the Special Act on Coal Power currently being discussed in the National Assembly is focused on supporting affected regions, a separate law may be necessary for cold reserve and security power designations."

Expansion of Coal Power Operation in Multiple Countries after U.S.-Iran War

Earlier, in March, the government decided to increase the operation rates of nuclear and coal-fired power plants to prepare for the prolonged high oil price situation caused by the U.S.-Iran war.

The prominence of coal power is not limited to South Korea. According to the Korea Energy Economics Institute and major foreign media, after the outbreak of war, Asian countries such as China, India, and Bangladesh have quickly ramped up coal-fired power plant operations.

The Indian government instructed some power plants using imported coal to maintain maximum operating rates. Japanese Prime Minister Sanae Takaichi announced on March 27 that regulations on aging coal-fired power plants would be eased for one year to ensure a stable power supply.

Some European countries are also moving to expand coal-fired power generation. Italy has extended the end date for operating coal-fired plants by more than 10 years, adjusting it to 2038.

Experts predict that this energy crisis will affect each country’s coal phase-out policies. Professor Jeong Yongheon of Ajou University Graduate School of International Studies explained, "Coal can be produced in almost every country, so it carries little geopolitical risk. For energy security alone, coal power must be maintained."

The government maintains its principle of coal phase-out by 2040. A ministry official said, "While upholding the principle of coal phase-out, we plan to respond to energy supply crises caused by external factors such as the current Middle East war and minimize transition costs by utilizing some coal-fired power under the precondition of reducing carbon emissions as security power sources."

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