Meeting New Presidents of Five Power Companies, Industry Vice Minister Says "Coal Power Transition Must Be a Core Management Goal"

Ministry of Industry and Five Power Companies Form 'Coal Power Transition Council'
Coal Power Transition Roadmap to be Announced in Q1 Next Year

Choi Nam-ho, Vice Minister of Trade, Industry and Energy, met on the 19th with the newly appointed CEOs of the five power generation companies?Korea South-East Power, Korea East-West Power, Korea Midland Power, Korea Southern Power, and Korea Western Power?to discuss the direction of business structure reorganization and plans for reutilizing coal power infrastructure, and agreed to form a consultative body for an orderly transition of coal power generation.

Based on the business restructuring and coal power infrastructure reutilization plans of the five power generation companies, they also decided to establish a "Coal Power Transition Roadmap" by the first quarter of next year, together with the five power companies, local governments, and related ministries, aimed at minimizing the impact on local economies and jobs caused by the abolition of coal power generation.

Choi Nam-ho, Vice Minister of Trade, Industry and Energy, is speaking on the 19th during a meeting with the newly appointed presidents of the five power generation companies.

According to the 10th Basic Plan for Electricity Supply and Demand and the draft of the 11th Basic Plan for Electricity Supply and Demand, starting with the closure of Unit 1 of Taean Thermal Power Plant at the end of next year, more than 75% of the coal power plants owned by the five power generation companies are expected to be phased out by 2039.

An official from the Ministry of Trade, Industry and Energy stated, "In this energy transition process, it is essential for the five power generation companies to devise strategies to break away from a high-carbon-centered business structure in order to survive. It is necessary to proactively prepare for the impact on local economies and jobs by ensuring the smooth progress of alternative construction projects such as liquefied natural gas (LNG) and pumped storage, expanding investments in zero-carbon energy sources such as hydrogen and ammonia, and establishing plans for reutilizing coal power infrastructure."

At the meeting, Vice Minister Choi urged the new CEOs to undertake bold business restructuring at the level of a "second founding" and requested that "orderly coal power transition" be set as a core management goal for the power generation companies. Vice Minister Choi emphasized, "The transition of coal power is not a task for a single ministry or the power companies alone, but a joint task involving all ministries and local governments connected to local communities and workers. We will promote bold business structure reorganization of the five power companies through the swift establishment of the roadmap and minimize the negative impacts of coal power phase-out."