Latest news with #Kepco
Japan Times
5 days ago
- Business
- Japan Times
South Korea's new president has a chance to clean up
The election of left-leaning former labor activist Lee Jae-myung as South Korean president Tuesday is just the latest example of how much of the world is moving in the opposite direction to the US. In common with recent elections in Canada and Australia, it's a rebuke of leaders on the right who've fought a rearguard action against the transition to renewables. Lee has promised to phase out coal, limit use of natural gas and accelerate the building of wind and solar. His position on nuclear power, a major success story that was strongly supported by his impeached predecessor Yoon Suk Yeol, remains ambiguous. However, resolving energy policy in South Korea won't be easy. Years of inertia and obstruction of the transition have left the country with a system that's plagued with high costs and has the lowest renewable penetration among developed economies. State-owned utility Korea Electric Power Corp., or Kepco, is wallowing in debt after it was forced to suppress bill prices when Russia's invasion of Ukraine pushed up the cost of liquefied natural gas. In the best of times, it usually depends on government subsidies to sell electricity for less than it spends on fueling, building and servicing its plants. The biggest challenge will come from fixing the crippling costs of renewables. South Korea pays more for its wind and solar than any other major economy. It's the only significant market where you can still build a new coal power plant more cheaply than a new solar or wind generator. If Lee's plans for an energy transition aren't going to become mired in red tape while adding yet more costs to Kepco's teetering balance sheet, it will be slow, unrewarding work. British Prime Minister Keir Starmer came to power last year promising to build 1.5 million homes in five years by breaking through a similar morass of regulatory roadblocks. Homebuilding this year, however, is expected to hit its lowest level in 14 years. The barriers to renewables are legion. Some are natural: South Korea is as densely populated as the Netherlands, but its land is far more mountainous. That means a dearth of the flat sites best suited to solar and wind. The few that exist have to contend with a farming sector that aims to be largely self-sufficient in growing rice for the country's 52 million people. Hillsides where solar can be built are vulnerable to landslides, particularly as a warming climate causes more intense downpours. There are no grid connections to other countries, because South Korea doesn't much trust its neighbors. The more serious barriers are the effect of regulatory capture, though. One little-noticed update from Kepco and the powerful Ministry of Trade, Industry and Energy last year largely outlawed new renewable development for seven years in a swath of the south and east, saying fresh generation licenses wouldn't be issued in the region until 103 electricity substations complete their upgrades in 2032. Similarly, onerous rules requiring solar developers to verify the carbon footprint of their panels throughout the supply chain were introduced in 2021 following concerns that Chinese modules were undercutting local manufacturers. That's helped prop up the local industry, but left the country with some of the highest module costs in the world. The carbon footprint of a grid that gets 60% of its power from fossil fuels seems to have been less of a concern. Lee's more vocal backing for offshore wind is a sign of how intractable these problems may be. It's the least price competitive form of clean energy in South Korea, but in a country where the rural lobby is opposed to onshore solar and wind and the green lobby wants a halt to further nuclear development, it's the one that's least likely to upset any interest groups. For all that, Lee has some advantages. The center-left has had control of Seoul's executive and legislative branches for just two years since 2008, from 2020 to 2022 when policy was dominated by COVID-19. He's now got that power, giving him a stronger hand in allowing more renewables onto the grid. Kepco's weakened financial state should mute its objections, too. He will need to move fast, though. Three under-construction nuclear generators near Ulsan and on the east coast must be expedited, while the red tape that's held back solar and wind will need to be slashed. If Kepco needs more bailouts, they should be conditional on it upgrading transmission networks to open up the windy, sun-baked east of the country as a renewables hub. Even costly offshore wind has potential, if prices can be brought down by shortening current decadelong development times. Costs for the technology in the U.K. fell by two-thirds between 2014 and 2019 as the sector grew. There's no reason South Korea can't repeat the trick. David Fickling is a Bloomberg Opinion columnist covering climate change and energy.
Leaders
25-04-2025
- Business
- Leaders
Saudi Arabia Accelerates Nuclear Plant Bid Process: Reports
Saudi Arabia has resumed plans to develop its first nuclear power plant in Duwaiheen, according to reports. The project, initially planned in the mid-2010s, aims to diversify the kingdom's energy sources and reduce reliance on oil. Riyadh has initiated bilateral discussions with several nuclear technology providers. These include China National Nuclear Corporation, Korea Electric Power Corporation (Kepco), Rosatom from Russia, and EDF Group from France. These companies have been invited to bid for the contract to develop the large-scale nuclear power plant. The Saudi Power Procurement Company (SPPC) has received bids for financial, legal, and technical consultancy contracts. These contracts will prepare and review project agreements related to electricity procurement from the Duwaiheen nuclear power plant. Project Details and Timeline The Duwaiheen nuclear power plant is expected to be a 2.8GW facility. It will be procured using a traditional design-and-build model. The project client, King Abdullah City for Atomic and Renewable Energy (KA-Care), has set and extended bid submission deadlines several times since 2022. The ongoing conflict between Israel, Gaza, and other neighboring countries has extended the procurement timeline. Additionally, Riyadh is using the project as a bargaining chip with the US government, which opposes uranium enrichment and pushes for the normalization of relations between Israel and Saudi Arabia. Project Management and Consultancy In 2023, Duwaiheen Nuclear Energy Company received three bids for the project management consultancy package. The bidding companies include Atkins (UK/Canada), Worley (Australia), and Assystems (France). Two of these bidders have had previous engagements with the Saudi nuclear energy project. The Duwaiheen nuclear power plant project is a significant step in Saudi Arabia's energy diversification agenda. Despite delays and political complexities, the project remains a key component of the kingdom's Vision 2030 initiative. The successful completion of this project will not only provide a new source of electricity but also support seawater desalination and thermal energy applications. Short link : Post Views: 9
Zawya
17-03-2025
- Business
- Zawya
Doosan consortium seals $1.5bln Saudi power plants contract
A consortium - comprising Korea's Doosan Enerability (formerly Doosan Heavy Industries) and Sepco3, a professional electric power engineering company - has secured a major contract worth 2.2 trillion won ($1.52 billion) for building two combined cycle power plants in Saudi Arabia - Rumah 1 and Nairyah 1 - with a total capacity of 3600 MW. The contract was awarded by the developer consortium of Saudi utility major Acwa Power, Korea Electric Power Corporation (Kepco) and Saudi Electricity Company (SEC). The Rumah 1 and Nairyah 1 facilities, each with a capacity of 1800MW, are key projects launched under Saudi Arabia's Vision 2030 initiative aimed at responding to the growing demand for electricity, improving the power structure, enhancing the peak-generation capacity of the power grid, and ensuring the safe and stable operation of the power grid. The Rumah 1 is located about 80km east of capital Riyadh, while the Nairyah 1 plant is located 50km north of Al Nairyah, Eastern Province. On the contract win, Lee Hyun-ho, the Head of Doosan Enerability's Plant EPC division, said: "The contract underscores our construction expertise and competitiveness in the global energy sector, particularly as the Middle East's energy demand continues to grow." The successful implementation of the project will greatly enhance Saudi Arabia's power supply capacity, optimize the power structure, and inject strong impetus into the sustainable development of Saudi Arabia's economy and society, he stated. Last November, the Acwa Power consortium had signed the power purchase agreement with the principal buyer Saudi Power Procurement Company (SPPC). In both these projects, Acwa Power holds a 35% ownership stake with SEC and Kepco as partners. The project scope includes development, financing, construction, ownership and operation of these plants. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Trade Arabia
17-03-2025
- Business
- Trade Arabia
Doosan consortium seals $1.5bn Saudi power plants contract
A consortium - comprising Korea's Doosan Enerability (formerly Doosan Heavy Industries) and Sepco3, a professional electric power engineering company - has secured a major contract worth 2.2 trillion won ($1.52 billion) for building two combined cycle power plants in Saudi Arabia - Rumah 1 and Nairyah 1 - with a total capacity of 3600 MW. The contract was awarded by the developer consortium of Saudi utility major Acwa Power, Korea Electric Power Corporation (Kepco) and Saudi Electricity Company (SEC). The Rumah 1 and Nairyah 1 facilities, each with a capacity of 1800MW, are key projects launched under Saudi Arabia's Vision 2030 initiative aimed at responding to the growing demand for electricity, improving the power structure, enhancing the peak-generation capacity of the power grid, and ensuring the safe and stable operation of the power grid. The Rumah 1 is located about 80km east of capital Riyadh, while the Nairyah 1 plant is located 50km north of Al Nairyah, Eastern Province. On the contract win, Lee Hyun-ho, the Head of Doosan Enerability's Plant EPC division, said: "The contract underscores our construction expertise and competitiveness in the global energy sector, particularly as the Middle East's energy demand continues to grow." The successful implementation of the project will greatly enhance Saudi Arabia's power supply capacity, optimize the power structure, and inject strong impetus into the sustainable development of Saudi Arabia's economy and society, he stated. Last November, the Acwa Power consortium had signed the power purchase agreement with the principal buyer Saudi Power Procurement Company (SPPC). In both these projects, Acwa Power holds a 35% ownership stake with SEC and Kepco as partners.
Yahoo
20-02-2025
- Business
- Yahoo
Sad photos of empty Aussie town after foreign investors buy 13,000 hectares
The old church is hardly used, the general store shuttered its doors and its petrol pumps are rusting. At least 13,000 hectares of what were mostly small family farms in Australia's Bylong Valley were bought up by South Korean energy giant Kepco after it purchased a coal mining lease in the area. But Kepco's plans to build a mine on its leasehold, west of Newcastle, were rejected by the NSW Independent Planning Commission in 2019 due to environmental concerns, and a request for the High Court to hear its appeal was dismissed two years later. With no clear avenue to proceed, the town sits in limbo and locals are mystified by what its plans are. Local farmer Phil Kennedy said the company's presence has 'ripped the spirit out of the Bylong Valley'. Speaking with Yahoo News, he said the general store needs repairs and its closure has affected residents who remained in the town. 'There's nowhere to buy your paper or bread," he said, adding the closest place to get petrol is 55km away. "That's a good half-hour to 45 minute drive,' he said. After it was bought out by Kepco, the general store closed in 2021. The company told Yahoo it is 'actively' seeking an operator, but with the valley now quiet, no one has been game to rent the shop even at a measly $13,200 per annum. Kennedy saw his region dramatically change after Kepco purchased the lease in 2010, and its subsequent farmland buyout depopulated the valley by almost half. Today, the land has been leased out to a large cattle company and that's brought some life back to the area, but he'd like to see it sold off again as smaller family farms. What Kepco plans to do now remains unclear. Locals had thought the company would leave the area but in a surprise move it was revealed this week, the lease was quietly renewed in December last year. The company, which is majority-owned by South Korea's government, declined to answer questions from Yahoo News about whether it had plans to sell the land. Asked if it still hoped to somehow build a mine it said, 'We are unable to provide any comments on the strategic matters you have raised.' ❌ Calls for Bunnings, Mitre 10, Coles and Woolworths to ditch 'toxic' product 🔎 Deep sea search for rare Aussie sharks and fish 😳 Popular national park too 'dangerous' to enter after 'botched' project Lock the Gate Alliance advocates for the rights of landholders when mining companies take out leases on their land. Spokesperson Nick Clyde said a leasehold never should have been granted over the region because of its importance as an agricultural food bowl. 'After Kepco's coal mine proposal was rejected emphatically by the Independent Planning Commission, the NSW Land and Environment Court, and then the High Court, their exploration licences should have been immediately extinguished,' he said. 'Instead, locals are still living with uncertainty.' Love Australia's weird and wonderful environment? 🐊🦘😳 Get our new newsletter showcasing the week's best stories.
