South Korea vows to end nukes

June 19, 2017

Source : Financial Times

https://www.ft.com/content/40871236-45da-11e7-8519-9f94ee97d996

South Korea steps back from nuclear power

Pledge to scrap plans for new reactors marks overhaul for country’s energy policy

South Korea’s president Moon Jae-in has vowed to scrap all existing plans for new nuclear power plants and cancel lifetime extensions for aged reactors, heralding a major overhaul for the country’s energy policy.

It marked Mr Moon’s second major announcement to change the country’s power mix after ordering a temporary halt on eight of the country’s older coal power plants soon after taking office last month, amid growing health concerns in one of the world’s most polluted countries.

“We will abolish our nuclear-centred energy policy and move towards a nuclear-free era,” Mr Moon said on Monday in the coastal city Busan, marking the closure of the country’s first nuclear reactor built in 1977. “So far, the country’s energy policy focused on low prices and efficiency. But this should change now with our top priority on public safety and the environment.”

He added that the country would soon shut down another aged nuclear plant following a previous extension of its lifecycle, while hinting at halting the construction of two new nuclear reactors conditional upon a public consensus.

South Korea has the sixth-largest fleet of nuclear reactors in the world, generating about one-third of its energy needs from 25 reactors. But concerns over nuclear safety have intensified after Japan’s Fukushima nuclear disaster in 2011 and a major earthquake in the country’s southeastern city last year.

The new policy represents a break from the past administrations, which favoured cheaper but dirty coal power and riskier nuclear energy over more costly natural gas and clean renewables.

Worsening air pollution emerged as one of the main campaign issues in South Korea’s recent election, with air pollution soaring to record highs in the first few months of 2017. Coal-fired power plants were blamed as one of the main culprits for worsening pollution.

South Korea operates 59 coal-fired power plants that supply nearly 40 per cent of the country’s total electricity, but Mr Moon has promised to close those older than 30 years within his five-year presidential term and to not build new coal plants.

But experts caution that the shift could result in energy supply shortages and higher costs for the country that imports much of its energy from overseas. South Korea has the highest per capita electricity demand in Asia, although the country ranks among the top importers of coal, oil and gas in the world.

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“It is a step in the right direction but there is a question mark over how to address the potential supply shortfall and rising costs,” says Kim Kyung-nam, professor at the Graduate School of Energy and Environment at Korea University.

Mr Moon has vowed to increase the portion of renewable energy to 20 per cent by 2030 and increase LNG-fired power production, even raising the possibility of reviving a deal to import natural gas from Russia through North Korean territory.

Renewable sources account for 6.6 per cent of the country’s energy supply, the lowest among OECD countries, as their production has been damped by technological constraints, heavy regulations and weak demand.

The government plans to invest Won13.8tn ($12.2bn) this year in developing alternative energy sources in order to cut greenhouse gas emissions by 37 per cent by 2030 under the Paris climate agreement. It also plans to ease regulations and offer more incentives to spur clean energy production.

But experts worry that it could be challenging to increase clean energy production, given the lack of natural resources for the populous and mountainous country. This would mean higher energy costs for South Korean industries, which have enjoyed low electricity prices.

“If you get rid of nuclear energy, which is relatively low cost once built, and replace coal with more expensive LNG, that’s going to translate into higher electricity prices, which could hurt domestic industries [and] it is not going to be popular,” says Kerry-Anne Shanks at energy consultant Wood Mackenzie.

Experts also caution the government’s anti-nuclear stance bodes ill for the country’s ambition to export more reactors abroad. On the back of the thriving domestic industry, state-run utility Kepco has emerged as one of the few international players capable of successfully building nuclear reactors, unlike overseas rivals mired in cost overruns and construction delays.

“One of Kepco’s biggest strengths is its track record in development of domestic nuclear capacity. Mr Moon’s plans to suspend or scrap nuclear developments within South Korea could hurt this record.” says Ms Shanks.

“A withdrawal of government support for nuclear development in South Korea would send a negative signal to foreign countries looking to purchase reactors.”

New South Korean president

vows to end use of nuclear power

Moon Jae-in said he would lead country

towards a ‘nuclear-free era’ following

fears of a Fukushima-style meltdown

Justin McCurry in Tokyo, The Guardian, Monday 19 June 2017

https://www.theguardian.com/world/2017/jun/19/new-south-korean-president-vows-to-end-use-of-nuclear-power

South Korea’s new president, Moon Jae-in, has vowed to phase out the country’s dependence on nuclear power, warning of “unimaginable consequences” from a Fukushima-style meltdown.

Moon, a left-leaning liberal who won last month’s presidential election by a landslide following the impeachment and arrest of Park Geun-hye, said he would increase the role of renewable energy and lead South Korea towards a “nuclear-free era”.

Speaking at an event to mark the closure of the country’s oldest nuclear plant, Kori-1, he said: “So far, South Korea’s energy policy pursued cheap prices and efficiency. “Cheap production prices were considered the priority while the public’s life and safety took a back seat. But it’s time for a change.

“We will abolish our nuclear-centred energy policy and move towards a nuclear-free era. We will completely scrap construction plans for new nuclear reactors that are currently under way.”

Moon added that he would not extend the operation of ageing reactors, many of which will come to the end of their lifespans between 2020 and 2030.

Weaning South Korea off nuclear power, however, could take decades, and there is expected to be opposition from construction companies, which have increased technology exports under Moon’s nuclear-friendly predecessors.

The country was the fifth-largest producer of nuclear energy last year, according to the World Nuclear Association, with its 25 reactors generating about a third of its electricity.

The former president Lee Myung-bak saw nuclear as an important source of clean energy, while Park wanted to increase the number of reactors to 36 by 2029.

Moon recognised the role of nuclear power in South Korea’s rapid economic development, but added that Japan’s Fukushima disaster – which prompted the evacuation of tens of thousands of people – had convinced him that his country must look to new sources of energy.

“The country’s economic status has changed, our awareness on the importance of the environment has changed. The notion that the safety and lives of people are more important than anything else has become a firm social consensus,” he said.

Anti-nuclear campaigners have long warned of the potentially disastrous consequences of a meltdown at a nuclear plant in South Korea, where many reactors are close to densely populated areas.

The public’s support for nuclear power has weakened since the 2011 Fukushima meltdown and a 2013 corruption scandal over fake safety certificates for reactor parts.

“The Fukushima nuclear accident has clearly proved that nuclear reactors are neither safe, economical nor environmentally friendly,” Yonhap news agency quoted Moon as saying.

“South Korea is not safe from the risk of earthquakes, and a nuclear accident caused by a quake can have such a devastating impact.”

He also plans to close at least 10 ageing coal-fired power plants before his term ends in 2022 and to boost renewables’ share of the energy mix to 20% by 2030.