Minister Kim Seong-hwan of the Ministry of Climate, Energy and Environment said on the 9th that, in connection with a plan to overhaul industrial electricity rates in the first quarter by lowering daytime rates and raising evening and nighttime rates, "most corporations will see a rate cut effect."
At a press briefing that day, the Minister said of the overhaul of industrial electricity rates, "Overall, it appears to be beneficial for most corporations," adding, "there is an actual rate reduction effect." He added, "However, plants operating 24 hours may not benefit much, but most are far from the capital area, so we judge they will see benefits from the introduction of a regional rate system."
The climate ministry plans to push ahead with a restructuring of industrial electricity rates in the first quarter. Corporations' electricity demand is high in the evening and at night, and it was reported that the ministry is reviewing a plan to lower daytime rates, when solar output is high to encourage greater use of solar power, and raise evening and nighttime rates.
The climate ministry also plans to announce a plan this year to introduce a regional differential rate system. The system would reflect transmission expense and other factors so that areas closer to power plants pay relatively less and areas farther away pay relatively more. The Minister said, "If it is harder to recruit talent the farther you go from the capital area, then at least electricity should be cheaper so corporations have an incentive to move to the provinces."
Regarding the claim to "relocate the Yongin semiconductor cluster," the Minister said, "Because the power grid to supply power to the cluster from Honam or Yeongnam was tentatively disclosed, residents' opposition grew stronger, so I spoke at a general level." He added, "I understand the presidential office has concluded that the government cannot force corporations' choices."
Earlier, the Minister appeared on a radio program and said, "If SK hynix and Samsung Electronics move into Yongin, the amount of electricity the two corporations would use would be equivalent to 15 nuclear reactors, about 15 GW, so we are wondering whether they must be there or whether, even now, they should move to a region with more electricity."
The Minister said the government will review whether to build additional new nuclear power plants beyond the "two large nuclear power plants and one small modular reactor (SMR)" it recently finalized for construction. He said that in the 12th Basic Plan for Long-term Electricity Supply and Demand now being drawn up, "there is interest in whether to increase (nuclear power) and how, and we will make a comprehensive judgment based on scientific and objective conditions."