South Korea to Launch Hearings on 12th Power Supply and Demand Plan, New Nuclear Projects Under Review

South Korea's Ministry of Climate, Energy and Environment stated on August 4 that the government will advance procedures for the 12th Basic Plan for Power Supply and Demand, with the issue of new nuclear power plants to be included in public discussion and subsequent review.

Kim Sung-hwan, Minister of Climate, Energy and Environment of South Korea (Photo source: Yonhap)

South Korea's Climate Change Minister Kim Sung-hwan stated that the format and number of sessions for the public hearings on the 12th Basic Plan for Power Supply and Demand will be finalized this week, with plans to accelerate related procedures starting next week. Under the current schedule, the government intends to form a planning proposal in September or October and submit it for review through established procedures after completing public consultation.

Regarding the issue of new nuclear power plants, Kim Sung-hwan stated that the government will make a final decision after fully listening to expert and public opinions. The plan also covers South Korea's mid- to long-term electricity demand, power generation mix, grid construction, and energy storage system configuration.

South Korea believes that the expansion of the artificial intelligence industry and the construction of ultra-large AI data centers (AIDC) will drive up electricity demand. To address the new load, the government plans to simultaneously expand renewable energy, grid, and energy storage system (ESS) capacity, while studying power generation mix adjustments based on supply and demand conditions. Nuclear power project reviews will also proceed within this framework.

The South Korean government has also proposed adjusting the industrial electricity pricing system to better reflect regional differences in power supply and demand. The financial capacity of the Korea Electric Power Corporation (KEPCO) will be taken into consideration, and related regional differentiated pricing schemes are expected to be further finalized after public hearings.