Minister Kim Seong-hwan of the Ministry of Climate, Energy and Environment said, "There is no direct connection between renewable energy and higher electricity rates, and that is a false frame."
On the 29th, during the National Assembly's Climate, Energy and Environment and Labor Committee's comprehensive audit of state affairs, the Minister responded this way after criticism that expanding the rollout of renewable energy would raise electricity rates.
Rep. Kim Wi-sang of the People Power Party said, "As we push rapidly to expand the rollout of renewable energy, a rise in electricity rates due to the abrupt transition is unavoidable," and asked, "Are you preparing to restructure the electricity rate system?"
Rep. Kim said, "Over the past 10 years, residential electricity rose 15.4% and industrial electricity rose 67.4%," adding, "Industry is shifting to self-generation or power purchase agreements (PPA), which is leading to a decline in KEPCO's power sales. How will KEPCO's deficit be filled?"
In response, the Minister said there is no direct connection between renewable energy expansion and electricity rate hikes, and explained, "Between 2021 and 2023, international oil prices surged due to the Russia-Ukraine war, and the factors behind KEPCO's deficit have accumulated and simply have not yet been resolved."
He countered, "According to the International Energy Agency (IEA), solar and wind are already the cheapest energy sources," adding, "Onshore wind has seen its unit costs drop very low, and offshore wind will see prices fall quickly once economies of scale are realized."
He went on, "The claim that electricity rates rise as renewable energy increases is a false frame," and emphasized, "We, too, will head in the same direction as technology advances and markets change."
The Minister also said that, taking into account local governments' interest in hosting nuclear plants, the 12th Basic Plan on Electricity Supply and Demand will include new nuclear power plants.
Regarding new nuclear plant construction, the Minister said, "I have never said we might not do it," and reiterated that the 12th basic plan would go through a public deliberation process.
When People Power Party Rep. Cho Ji-yeon pointed out that "after the Minister took office on Jul. 22, meetings of Korea Hydro & Nuclear Power Co. (KHNP)'s committee to select sites for new nuclear plants were halted," the Minister drew a line, saying, "I have not heard that they were halted."
He also stressed the intention to accelerate the expansion of a high-level radioactive waste disposal facility. Minister Kim said, "Not having a high-level radioactive waste disposal facility is like building an apartment without a bathroom." He explained, "It is expected that a site can be selected by 2038, or by 2040 at the latest. Given the delay, we will compress the timeline as much as possible and build it in the safest geological location in the country."
The Minister also emphasized, "The Lee Jae-myung administration's energy policy is to expand renewable energy and create an energy mix," adding, "The policy's basic stance is to push decisively for decarbonization."