[Asia Economy (Hongseong) Reporter Jeong Il-woong] Chungnam Province has rolled up its sleeves to enact a special law for residents in areas where coal-fired power plants are being closed.
On the 23rd, the province announced a resolution urging the enactment of the special law and the establishment of a fund at the ‘3rd Chungnam Provincial Government Meeting’ held that day.
According to the province, there are 58 thermal power plants nationwide. Among them, 29 are located in Chungnam, accounting for a significant portion of the country's power supply.
However, the province claims that residents near thermal power plants have endured physical and mental harm for decades due to fine dust, power transmission lines, and large transmission towers.
Recently, the government released the ‘10th Basic Plan for Electricity Supply and Demand’ which includes the phased closure of 28 out of the 58 thermal power plants nationwide.
This includes 14 thermal power plants located in Chungnam. According to the basic plan, the operation of thermal power plants in Chungnam will be sequentially suspended starting with 2 plants in 2025, 2 in 2026, 1 in 2028, 3 in 2029, 2 in 2030, 2 in 2032, and 2 in 2036.
The problem is that while 16 thermal power plants in Chungnam will be closed by 2036 (including 2 in Boryeong closed in 2020), only 2 liquefied natural gas (LNG) power plants will be constructed as replacements in the region.
In particular, despite the inevitable contraction of the local economy and employment hardships for workers due to the closure of thermal power plants, the province points out that no corresponding support measures have been prepared.
For example, the province expects that the closure of thermal power plants will lead to a decrease of 19.2 trillion KRW in induced production, 7.8 trillion KRW in induced added value, and 7,600 jobs.
This scale is difficult for local governments to handle alone, which is why there are calls for government-level support through the enactment of a special law and the establishment of a fund.
In the resolution, the province expressed “deep concern over the government’s coal phase-out policy that does not present concrete support measures for the special sacrifices endured by coal power plant closure areas,” and urged the government to “socially share the anticipated damages and burdens in the transition to a carbon-neutral society to realize a just transition.”
It also cited Germany’s Coal Phase-Out Act and Structural Strengthening Act for Coal Regions, as well as the establishment of the Federal Structural Transition Fund as exemplary cases of financial support for coal power plant regions, emphasizing that the government should support job creation through fostering alternative industries in Chungnam and transitioning to eco-friendly energy industries, as well as respond to the contraction of the local economy.
Kim Tae-heum, Governor of Chungnam Province, said, “We have urged the enactment of a special law considering the impact on the local economy of the early closure of thermal power plants due to the government’s eco-friendly energy policy,” adding, “The province will continue close communication with the National Assembly and the Ministry of Trade, Industry and Energy to ensure that a special law supporting the coal power plant closure areas concentrated in Chungnam can be enacted.”
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