[Public Voices] Overcoming the Power Grid Crisis Requires Legal Measures

Accelerating the National Power Grid Expansion Act
for Renewable Energy in the Era of Climate Change and AI

Lee Jong-young, former president of the Korean Energy Law Association (Professor Emeritus at Chung-Ang University)

The pressing challenge of our time can be said to be addressing the climate crisis and pursuing the just development of artificial intelligence (AI) through advanced science and technology. The key to overcoming the climate crisis lies primarily in transitioning from fossil fuels to renewable energy. AI requires the operation of data centers as an essential condition, and data centers demand a large amount of electricity. Consequently, to avoid falling behind in the AI era, a sufficient power supply capable of supporting AI must be ensured. As a result, to catch two rabbits?the AI era and the supply of renewable energy?electricity generated from large-scale renewable energy must be supplied promptly to demand centers. This is why expanding the power grid is urgent.

Expanding the power grid is not limited to the Ministry of Trade, Industry and Energy. It requires consultation with multiple central administrative agencies such as the Ministry of Environment, Ministry of Land, Infrastructure and Transport, Korea Forest Service, Ministry of Agriculture, Food and Rural Affairs, and close cooperation with local governments. The Special Act on the Expansion of the National Power Grid (hereinafter referred to as the Power Grid Act), proposed in the 22nd National Assembly, recognizes this and suggests establishing a National Power Grid Committee chaired by the Prime Minister, with heads of related central administrative agencies and local government heads as members, to make decisions necessary for expanding the national power grid. Through this, the expansion of the national power grid can achieve unified decision-making at the national level by building a system that coordinates differing opinions among administrative agencies.

Another innovative aspect of the Power Grid Act is the establishment of a system that can appropriately compensate for infringements on private property caused by the construction of the national power grid. When constructing national power grid facilities, it is inevitable to use, expropriate, or restrict private property, but the compensation standards of the state and public enterprises must follow standardized procedures, which fail to provide compensation suitable to reality. Because of this, affected property owners actively oppose the construction of the national power grid in their areas. The currently proposed Power Grid Act includes reasonable compensation systems for private property related to power grid construction, taking this reality into account.

There is one more provision in the Power Grid Act that aligns with the author’s usual thoughts. It mandates the state to establish a “Basic Plan for the National Power Grid” every five years, containing a 30-year outlook. Even if the Power Grid Act is enacted, democratic procedures and deliberative processes for power grid expansion will not be omitted, so the expansion will inevitably take a long time. Therefore, it is appropriate to take a longer-term perspective on the power grid and proactively expand it by considering consistency and optimization with other administrative plans related to power supply and demand, renewable energy, hydrogen economy transition, activation of distributed energy, and smart grids. Through this special act, there is now hope that the state will finally play its proper role.

Expanding the national power grid is not only an urgent national task but also a challenge for our generation. We are living in an era comparable to the Industrial Revolution. History flows inexorably, and the steering wheel of history in this era is the climate change crisis, expansion of renewable energy, RE100, and AI. The foundation of all these is stable power supply, and for this, power grid expansion is essential. It is truly fortunate that the National Assembly has proposed and is discussing the Power Grid Act, which includes appropriate provisions for power grid expansion. We now hope that after sufficient discussion in the National Assembly, the Power Grid Act will be enacted and the national power grid that our country needs will be expanded.

Jong-Young Lee, Former President of the Korean Energy Law Association (Professor Emeritus, Chung-Ang University)