Concerns are growing in the construction industry as the Lee Jae-myung administration moves to shift the center of energy policy from nuclear power plants to renewable energy such as solar and wind. Even looking only at simple construction expense, the cost per unit of electricity generated differs by more than three times. Each construction company has compiled data that can discuss efficiency by energy type, including construction expense and maintenance costs.
According to the domestic construction industry and the Nuclear Energy Agency under the Organization for Economic Cooperation and Development (OECD/NEA) on the 8th, the average construction expense per megawatt-hour (MWh) of Korea nuclear power plants (ALWR) is $25.5, or about 35,727 won in Hanwha terms. One MWh can supply electricity to about 300 households for one hour based on a U.S. household. According to data released in 2020 by the Korea Energy Agency (KEA), the construction expense per nuclear unit in Korea is 4 trillion to 5.5 trillion won (based on Shin Hanul Units 3 and 4).
Renewables such as solar and wind fall short of nuclear in efficiency when measured by simple construction expense. For domestic solar power facilities, the construction expense per 1 MWh is $83–84, or 117,000–119,000 won in Hanwha terms. Compared with nuclear, it costs more than three times the expense. In the case of wind, it costs as little as 117,000 won and as much as nearly 170,000 won.
Recently, as the government set the direction of energy policy toward phasing out nuclear and announced a stance to strengthen renewables, the construction industry has voiced concern. By efficiency, the so-called cost-effectiveness standard, renewables lag behind nuclear. One basis is that countries that had championed renewables globally are returning to nuclear. Following Switzerland and Italy declaring an end to nuclear phase-out, Belgium recently scrapped its phase-out policy for the first time in 22 years and declared a reintroduction of nuclear power.
Denmark, a wind power powerhouse, is also considering introducing small modular reactors (SMRs) 40 years after declaring a nuclear phase-out, and Sweden, which had been a phase-out country, decided to build four new nuclear units. The spread of artificial intelligence (AI) data centers and energy supply chain instability caused by the Russia-Ukraine war are the main reasons.
By contrast, Korea has recently emphasized expanding renewable energy. The reason is that energy demand is surging, requiring facilities that can secure power in a short time. Under a government policy to expand renewables, the government officially launched the Ministry of Climate, Energy and Environment on the 1st. Under the director for renewable energy policy at the ministry, there will be a solar industry division, a wind industry division, and a wind deployment team. In February, while establishing the 11th Strategic Supply and Demand Basic Plan (2024–2038), the government decided to build two new large nuclear units and one SMR, but it is currently reexamining new nuclear construction.
An executive in charge of civil engineering at a major construction company said, "In cost-effectiveness relative to generation energy, nuclear is far ahead," and added, "Halting the expansion of nuclear and meeting power demand only with renewables seems somewhat unrealistic."
In terms of maintenance, nuclear and solar energy do not show a large gap. However, for wind, maintenance expense was significantly higher than other energy types. The operation and management expense of nuclear is $18.44 per 1 MWh, or about 20,600 won in Hanwha terms. By the same standard, a solar power plant was slightly lower at 18,000 won. For wind, it was quite high at 40,000 to 63,000 won.
Domestic construction companies say profitability will not be greatly affected even if nuclear construction stops immediately in Korea. Most orders are won overseas, and they also possess technology to build renewable power plants. However, from the perspective of domestic power generation, sidelining nuclear and relying on renewables carries significant risk.
An official in the energy division of another major construction company said, "Nuclear and solar/wind power should be seen as complementary," and added, "A strategy is needed to pursue both the stable power supply of nuclear in preparation for surging electricity demand and the eco-friendliness and rapid capacity expansion of renewables."