President Kim Dong-cheol of Korea Electric Power Corporation (KEPCO) said that the shift to renewable energy could be a factor in raising electricity rates in the short term.
On the 5th, Kim held a press briefing at the site of the power and energy industry expo "BIXPO 2025" and said, "Because the current generation cost of renewable energy is considerably higher than that of nuclear power, it inevitably becomes a factor in raising electricity rates in the short term."
Kim added, "If, due to short-term rate hikes, we rely only on existing nuclear power, coal, and liquefied natural gas (LNG), we will have no choice but to remain a laggard in renewable energy, so we must move toward expanding renewables with public consent."
Regarding the 2035 Nationally Determined Contribution (NDC), Kim said, "It is a decision the government reached after discussions with numerous ministries and experts," adding, "KEPCO, as the executing body, only plays its role to achieve the target once the government decides."
The Ministry of Climate, Energy and Environment (MCEE) on the same day proposed cutting greenhouse gas emissions by at least 50% to 53% and up to 60% by 2035 compared with 2018.
Kim also mentioned the distributed energy special zones. The distributed energy special zones are a policy that allows electricity generated locally to be used directly in the area without going through the existing power market. Four locations—Jeju, South Jeolla, Busan Gangseo District, and Uiwang, Gyeonggi—were finally selected.
Kim said, "It is an opportunity in that it can ease the burden of expanding the power grid, but it is a crisis in the sense that KEPCO's power sales could decrease," adding, "Because electricity is absolutely indispensable to the public, we must approach it from the perspective of universal and stable supply."
He also stated his position on unifying nuclear power export functions. The government is currently reviewing a plan to unify the nuclear power export system, which is now divided between KEPCO and Korea Hydro & Nuclear Power Co. (KHNP).
Kim said, "It would be best if the export issue is settled in a way that allows KEPCO and KHNP to leverage their strengths," stressing, "In actual nuclear power exports and overseas projects, KEPCO's brand power is stronger than that of any domestic institution, and it has advantages in contracts and procurement interest rates, so KEPCO must play a role in nuclear power exports."
Kim also stated his position on the conflict with Korea Hydro & Nuclear Power Co. (KHNP) that day. KHNP and KEPCO are currently in dispute over payment of construction costs for the UAE Barakah nuclear plant, totaling in the 1 trillion won range.
Kim said, "KHNP is a 100% subsidiary of KEPCO and is economically the same entity," adding, "KHNP has not submitted evidence sufficient to persuade the client, and in light of Supreme Court precedent, there is no breach of trust issue in transactions between a parent company and its subsidiary." He continued, "Although arbitration is underway, we are continually seeking ways to resolve or mediate the contract dispute through consultations with the Ministry of Trade and Industry (MOTI) and through dialogue and negotiations between the two organizations."