South Korea to Spend $28 Billion on New Power Plants
By Shinhye Kang
Dec. 28 (Bloomberg) -- South Korea plans to spend 37 trillion won ($28.5 billion) building more nuclear and gas-fired power plants by 2022, to reduce its dependency on oil and meet rising demand for energy.
The country will build 12 more nuclear-powered plants, seven coal-fired plants and 11 fueled by liquefied natural gas by 2022, the Ministry of Knowledge Economysaid in a statement today. The projects are part of a government power supply-and-demand plan that outlines investment for the next 15 years.
South Korea, which imports almost all its oil, is trying to cut reliance on crude and diversify energy sources after oil prices in New York climbed to a record $147.27 a barrel in July. By the end of 2022, power-generating capacity in Asia’s fourth- largest economy will rise to 100.9 gigawatts from the current 65.9 gigawatts, the ministry estimates.
“By building more nuclear plants, the most economical and cleanest energy, South Korea can cope with high oil prices and reduce greenhouse-gas emissions,” saidYun Hee Do, an analyst at Korea Investment & Securities Co.
The cost of nuclear power generation is 3 won per kilowatt compared with 22 won at coal-fired plants and 89 won for gas, according to the ministry.
Nuclear plants will provide 48 percent of generating capacity by 2022, up from 34 percent this year, the ministry said in its statement. The country will reduce reliance on oil-fired plants to 0.2 percent from 1.9 percent.
South Korea’s plans are based on estimates that electricity demand will increase an average 2.1 percent annually through 2022. Currently, the country has 20 commercial reactors, 40 coal-fired plants and 45 gas-fired plants.