Korea Electric Power Corporation (KEPCO) plans to launch a solar power project within this year on the site of the Byron coal mine in Australia. This move reflects the intention to continue the project by shifting to eco-friendly power generation after the Australian government denied development approval in 2019 due to its decarbonization policy.
According to the power industry on the 24th, KEPCO will begin a preliminary feasibility study for the solar power generation project at the Byron coal mine site as early as the fourth quarter of this year. This marks 12 years since KEPCO entered the project in 2010 to mine thermal coal for power generation. A KEPCO official stated, "Although alternatives such as water electrolysis to produce hydrogen by splitting water were discussed for the site, it was ultimately judged that proceeding solely with the solar power project is the most appropriate. Therefore, we decided to carry out the preliminary feasibility study through a committee in the fourth quarter."
Originally, KEPCO acquired exploration rights from the global mining company Anglo American in 2010 to develop the Byron coal mine in Australia. KEPCO aimed to produce approximately 6.5 million tons of thermal coal over 25 years from the mine. Including the acquisition cost, KEPCO and five domestic public power generation companies invested a total of 830 billion KRW.
KEPCO shifted from coal mine development to solar power projects after the Independent Planning Commission (IPC), the Australian regulatory authority, denied the project in 2019. The decision was based on the view that coal mine development conflicted with sustainable development goals such as decarbonization. KEPCO filed an administrative invalidation lawsuit with the Australian court, but the case was dismissed in both the first and second trials, effectively halting the mining development project. In the same year, KEPCO recorded a loss of 513 billion KRW from the Byron coal mine project in its internal accounting.
Experts expect the Australian solar power project to serve as an exit strategy to offset previous losses. KEPCO's decision to exclude the Byron site from the list of non-core assets for sale in June this year, aimed at improving its financial structure, also reflects the judgment to enhance project viability through eco-friendly development rather than selling at a low price. A KEPCO official explained, "We plan to optimize the project's viability, including specific facility capacity and power generation site, through the preliminary feasibility study."
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