Semiconductor cluster ‘red light’ to operate since 2027
“Planned until 2036, everything must be at least in the location stage.”
Donghae Nuclear Power Plant, Jeolla Renewable Energy Supply is Urgently Needed
Investment in local power grids is also neglected… Difficulty due to opposition from residents
Kim Jeong-ho, “KEPCO has limitations, special law on power grid must be passed”
In the transmission and substation facility plan established by Korea Electric Power Corporation with a goal of 2036, 85% of projects have not even started construction to date. Considering that transmission and substation projects take an average of 13 years from site selection to completion, it is pointed out that this could lead to a serious power shortage in the future. The semiconductor cluster being built by Samsung Electronics and SK Hynix in Yongin, Gyeonggi Province is scheduled to start operation in 2030 and 2027, respectively, putting a red light on the country’s industrial competitiveness.
According to the status of progress compared to the 10th transmission and substation facility plan of KEPCO analyzed by the office of Representative Kim Jeong-ho of the Democratic Party of Korea on the 13th, out of a total of 307 projects as of the end of June, 6% (19) were completed and 9% (27) were started. 85% (261) were found to be in the location selection or preparation stage. Location is 50% (153), preparation is 35% (108). Transmission and substation projects usually begin construction after completing the ‘preparation’ stage, which includes reviewing basic data for power impact assessment, finalizing the site, and forming a site selection committee. An official from Rep. Kim’s office pointed out, “It takes about 13 years for KEPCO to lay down the core power grid,” and “the 10th transmission and substation plan is until 2036, so the entire project must be at least in the location selection stage.”
The lack of investment in transmission and substation in the east coast of Gangwon and Jeolla Province, which are essential for normal operation of the semiconductor cluster, was also pointed out as a problem. Looking at the status of investment in transmission and distribution networks by region over the eight years from 2017 to this year, 36% was concentrated in the metropolitan area, 8% in the Gangwon area, and 14% in the Jeolla area. Currently, the metropolitan area cannot meet the increasing demand for electricity with nearby power generation alone, so bringing in nuclear power generation from the East Sea and renewable energy power generation from Honam is an urgent task.
Investment in the metropolitan area’s power grid also has a higher proportion of substation than transmission. An official from the lawmaker’s office said, “It is difficult to send electricity due to difficulties in the transmission network business, so investing in substation facilities to change voltage is nonsense,” and added, “It is contrary to the direction of responding to power grid saturation.” This imbalance by region and project can be interpreted as the result of strong opposition from residents, especially regarding power transmission projects.
Rep. Kim said, “For the past 10 years, KEPCO has invested based on convenience, and as deficits accumulated, it invested passively, resulting in a power grid crisis.” He added, “There are limits to leaving it to KEPCO alone, so the Special Act on Power Grids, in which the government leads the construction of power grids, is in place.” “This must be passed as soon as possible,” he said. Previously, the Power Grid Special Act was proposed in the 21st National Assembly last year to create a pan-ministerial organization under the Prime Minister and significantly improve the business licensing process, but it was abolished upon the expiration of the term. It was proposed again in the 22nd National Assembly and is being discussed, but no significant progress has been made so far.
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