On 21 February 2025, the Ministry of Trade, Industry and Energy confirmed the 11th Basic Plan for Supply and Demand of Power. It applies from 2024 to 2038. The confirmation has been delayed due to differing views over the scale of new nuclear power plants and the impeachment of President Yoon.
On 12 June 2024, we issued a newsletter (Working draft of the Korean 11th Basic Plan for Supply and Demand of Power) on a working draft of the 11th Basic Plan. The following sets out the changes to this.
1. Key takeaways
The key policy directions are as follows.
- Management of aging thermal power facilities by decommissioning coal fired power plants and converting to LNG fueled, cogeneration and hydrogen power plants.
- Promotion of nuclear power plants. In particular, construction of two nuclear power plants and one domestic SMR.
- Promotion of renewable energy. For offshore wind, strengthening of the supply chain is emphasised. For solar, there is an increase of 2.4GW compared to the working draft and a focus on strategic distribution. For PPAs, the Government proposes to create a new facility entry market centered on government bidding, easing PPA regulations, providing low-interest loans, and opening a PPA brokerage market.
- Expansion of clean hydrogen ammonia power generation by promoting zero carbon power generation through the clean hydrogen certification system and the clean hydrogen power generation bidding market.
- Early roll out of BESS as a means of mitigating renewable energy volatility and output control and responding to system stability issues starting with the Honam region.
- Energy mix: Power generation quantity and proportion of power generation (unit: TWh)
| Year | Nuclear | Coal | LNG | Renewable | Clean Hydrogen Ammonia | Others | Total | ||
|---|---|---|---|---|---|---|---|---|---|
| Carbon | Zero carbon | ||||||||
| 2030 | 204.2 (31.8%) | 110.5 (17.2%) |
161.0 (25.1%) |
139.6 (21.7%) |
15.5 (2.4%) |
11.8 (1.8%) |
642.6 (100%) |
302.2 (47.0%) |
340.6 (53.0%) |
| cf Working Plan | - (-) |
▽1.4 (▽0.2%) |
△0.2 (-) |
△1.2 (△0.1%) |
- (-) |
△1.2 (△0.1) |
△1.2 (-) |
△0.3 (-) |
△1.2 (-) |
| 2038 | 248.3 (35.2%) |
70.9 (10.1%) |
74.3 (10.6%) |
232.1 (33.0%) |
43.9 (6.2%) |
34.9 (5.0%) |
704.5 (100%) |
206.7 (29.3%) |
497.8 (70.7%) |
| cf Working Plan | ▽1.4 (▽0.4) |
▽1.1 (▽0.2%) |
▽3.8 (▽0.5%) |
△1.3 (△0.1%) |
△5.4 (△0.7%) |
△2.4 (△0.4%) |
△2.8 (-) |
▽2.4 (▽0.5%) |
△5.2 (△0.5%) |
*Zero carbon power generation: nuclear power plants + renewable energy + clean hydrogen and ammonia
2. Things to watch
The Basic Plan must be refreshed every two years, but due to the delay in the 11th Basic Plan, the announcement of the 12th Basic Plan is only about a year away. There are concerns in the industry that the 12th Basic Plan may be delayed or that the 11th Basic Plan may become obsolete.
Work can now begin on the 12th Basic Plan. The direction of any changes should be monitored, particularly once the current political situation is resolved.
If you have any questions or need help with the above, please feel free to contact us. Our dedicated Project & Energy Group is recognised as a top ranking team in various international publications such as Chambers & Partners. It is the only Korean law firm that provides a one-stop service that can assist project and energy clients with regulatory advice, project finance, construction and operation and M&A.
[Korean version] ｢제11차 전력수급기본계획｣ 확정
