Government Plans to Sell Incheon Airport Energy
Power Facilities Saturated Due to Airport Expansion and Surrounding Development
Assemblyman Heo Jong-sik: "Measures Needed Such as Building New Power Plants"
[Asia Economy Reporter Park Hyesook] There are urgent calls to establish an energy supply plan for the Incheon Yeongjong area, which includes Incheon Airport, Airport New Town, and Yeongjong Sky City, for the period after 2030.
On the 15th, Rep. Heo Jongsik of the Democratic Party (Incheon Dong-gu Michuhol-gu Gap), citing the 'Incheon Airport Energy Co., Ltd. Status' submitted by Incheon International Airport Corporation, stated that the combined heat and power plant operating in the Yeongjong area (a BTO-type private investment) was originally scheduled to operate from 2001 to 2014, but after Incheon International Airport Corporation acquired 99% of the shares in 2010, the operation period was extended until 2031.
The heat pipeline network of Incheon Airport Energy, which supplies energy to Incheon Airport, Airport New Town (5,351 households), and Yeongjong Sky City (11,427 households), extends to 64 km.
Incheon Airport Energy has been pushed into a management crisis including capital erosion due to accumulated deficits, leading Incheon International Airport Corporation to take over and provide guarantees for loans amounting to 127 billion KRW to date.
Despite operating the combined heat and power plant for over 20 years, with aging facilities and the need to expand capacity due to increased energy demand, Incheon Airport Energy, which relies on loans for management, currently has no investment capacity.
In this situation, the Ministry of Land, Infrastructure and Transport instructed Incheon Airport Corporation last September, as part of public institution innovation measures, to sell the combined heat and power plant of Incheon Airport Energy.
However, Rep. Heo pointed out that it is uncertain whether the sale of the company, which is in a capital erosion state and scheduled to close in 2031, will proceed smoothly, or whether Incheon International Airport Corporation will be able to recover the guaranteed loans.
The bigger problem is that no roadmap or future plan has yet been established for heat supply in the Yeongjong area after 2031. Considering the Incheon Airport Phase 4 expansion and the formation of the airport economic zone, it is predicted that a 500 MW-class power generation facility will be necessary to supply electricity and heat.
Rep. Heo stated, "Even if the operation period of existing facilities is extended, facility saturation is inevitable, so large-scale investments such as expanding generation capacity or building a new power plant are required," adding, "For a new power plant, the approval process typically takes about seven years, so a plan must be finalized by 2025."
He continued, "Rather than selling Incheon Airport Energy, stable operation measures and policies to supply heat to the Yeongjong area in a timely manner after 2031 are needed," and said, "We will urge the Ministry of Land, Infrastructure and Transport to prepare countermeasures, including early consultations with the Ministry of Trade, Industry and Energy."
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