Yeongyang Pumped Storage Power Plant Construction Project Selected as Preliminary Feasibility Study Target

A Total Investment of 2.6 Trillion Won... Construction of Korea's Largest Facility
First Step Toward Passing the Preliminary Feasibility Study, Green Light for Early Project Implementation

Yeongyang County in North Gyeongsang Province announced that the "Yeongyang Pumped Storage Power Plant Construction Project" has been finally selected as a target project for the preliminary feasibility study at the "2025 2nd Public Institution Preliminary Feasibility Study Advisory Meeting" (Ministry of Economy and Finance, Minister Koo Yooncheol).

Bird's-eye view of the Yeongyang pumped-storage power plant.

Korea Hydro & Nuclear Power (President Hwang Jooho), the project operator, applied for the "Public Institution Preliminary Feasibility Study" to the Ministry of Economy and Finance on May 23. After about a month of review, the project was finally selected as a preliminary feasibility study target on July 1.

The Yeongyang Pumped Storage Power Plant will have a capacity of 1GW, equivalent to the size of one nuclear power plant, making it the largest in Korea. From 2024 to 2035, Korea Hydro & Nuclear Power will fully fund approximately 2.6 trillion won to construct upper and lower reservoirs, power generation facilities, and a relocation complex in Yonghwa-ri, Iwol-myeon, Yeongyang County.

This project is expected not only to attract new residents to Yeongyang County, which is facing the risk of population decline, but also to revitalize the local economy. It is anticipated to generate various ripple effects and serve as a new driving force for regional development through development linked to the pumped storage power plant.

The county expects that the construction of the pumped storage power plant will create around 150 regular jobs, reinvest 93.6 billion won in regional development support funds into community welfare projects, inject a pure construction cost of 1.8 trillion won to boost the local economy, secure a long-term tax revenue source of 1.4 billion won annually, and develop various tourism facilities utilizing resources around the power plant to establish new tourist attractions that will attract more than 100,000 visitors each year.

Currently, Korea Hydro & Nuclear Power, the project operator, is conducting a feasibility study service (from June 2024 to October 2025). The county expects that, given the thorough preliminary review conducted before applying for the project, it will be possible to pass the preliminary feasibility study within this year.

If the project passes the preliminary feasibility study, the county will proceed with full-scale preliminary administrative procedures, obtain approval for the implementation plan and a power generation business license, and aim to start construction in 2028 and complete it by 2035. The county also plans to accelerate the establishment of basic infrastructure and provide administrative support to ensure the project is settled early.

County Governor Oh Dochang stated, "With the selection of the Yeongyang Pumped Storage Power Plant Construction Project as a preliminary feasibility study target, we have taken a step forward in full-scale project implementation. As the hurdle of passing the preliminary feasibility study still remains, we will do our utmost to ensure success by working closely with Korea Hydro & Nuclear Power and North Gyeongsang Province, keeping in mind that this is just the beginning."