South Korea announces major energy investment

Reuters, Bloomberg News
Published: December 28, 2008

SEOUL: South Korea plans to invest 37 trillion won, or $28.5 billion, from 2009 to 2022 on new power plants, including 12 new nuclear plants, to improve fuel efficiency and cut emissions, the Energy Ministry said Sunday.
South Korea, one of the largest importers of crude oil, will also build seven new coal plants, 11 liquefied natural gas plants and 1 heavy fuel plant by 2022, but it will get rid of 3 existing coal plants, 6 liquefied natural gas plants and 13 heavy fuel units to improve efficiency, the ministry said.
"The plan is to generate more low-carbon power while decreasing the use of high-priced reserves such as LNG and coal," the ministry said, referring to liquefied natural gas. "Under the plan, the fuel cost will be about 56 percent lower than this year."
The total number of nuclear power units will rise to 32, or 32.92 million kilowatts, by 2022 and account for 48 percent of the country's total power generation, from 34 percent this year, the ministry said.
Liquefied natural gas, which is the most expensive fuel, will account for just 6 percent of total power generation in 2022 under the plan, down from the current 22 percent. The overall electricity power capacity will increase to 100.89 million kilowatts by 2022, up from 71.36 million by the end of 2008.

The cost of nuclear power generation is 3 won per kilowatt compared with 22 won at coal-fired plants and 89 won for gas, according to the ministry.
Separately, the ministry said it would lend a combined 289.8 billion won to petroleum developers in 2009 to help the country secure stable energy supplies. Of the finished budget, 60 percent is to go to existing projects, both at home and abroad, and the remainder to new exploration.
The ministry said the government would increase the ratio of lending support to non government companies in 2009, while it would curtail lending to the state-run Korea National Oil Corporation.
South Korea also plans to expand its use of alternative energy. Under the government's long-term plan, renewable energy sources, including solar, wind and water, should account for 11 percent of power consumption by 2030 from the current 2.2 percent.
To achieve its goals, South Korea intends to invest 100 trillion won in alternative energy by 2030. The country seeks a 44-fold increase in the supply of solar power to 3,504 megawatts, a 37- fold gain in wind power to 7,301 megawatts and a 19-fold increase in biofuels supply.