KHNP Launches Full-Scale Pumped-Storage Projects After 14 Years with 8.4 Trillion Won Investment

Five New Pumped-Storage Plants Including Yeongdong Underway
Expected to Back Up Renewable Energy and Revitalize Local Economies

Korea Hydro & Nuclear Power (KHNP) is actively moving forward with the construction of new pumped-storage power plants to help ensure the stability of the power grid.

KHNP announced on July 30 that the construction of Yeongdong Pumped Storage Units 1 and 2 began on April 17 this year, and with Hapcheon and Yeongyang pumped storage projects included in the 11th Basic Plan for Long-term Electricity Supply and Demand, the construction of pumped-storage power plants has resumed in earnest for the first time in 14 years since the completion of the Yecheon Pumped Storage Power Plant in 2011.

Hwang Juho, President of Korea Hydro & Nuclear Power, held a groundbreaking ceremony for the construction of the Yeongdong Pumped Storage Power Plant on April 17 at the construction site in Yanggang-myeon and Sangchon-myeon, Yeongdong-gun, Chungbuk, and delivered a commemorative speech. (Photo by Korea Hydro & Nuclear Power)

A KHNP official stated, "KHNP, the largest domestic power company operating nuclear, hydro, and pumped-storage power plants, is currently building or preparing to build a total of five pumped-storage projects with a combined value of approximately 8.6 trillion won," and added, "Through these projects, we expect to revitalize the previously stagnant pumped-storage construction ecosystem."

Pumped-storage power generation is a method in which water is pumped from a lower reservoir to an upper reservoir during periods of low electricity demand and stored there, then released back to the lower reservoir to generate electricity when demand is high. This approach compensates for the shortcomings of wind and solar power, which are highly affected by weather conditions, and has the advantage of being able to start up within five minutes during surges in electricity demand caused by heat waves, thereby preventing large-scale incidents such as regional blackouts in advance.

Yeongdong Pumped Storage Units 1 and 2, which will become the eighth pumped-storage power plant in Korea, are progressing smoothly with the goal of completion in December 2030. The Yeongdong project involves an investment of 1.2 trillion won to construct two 500 MW pumped-storage generators in Yeongdong County, North Chungcheong Province. KHNP expects that, once Yeongyang Pumped Storage Units 1, 2, 3, and 4?which are scheduled for completion in June 2036?are sequentially connected to the power grid, they will play a significant role as backup to supplement the variability and intermittency of renewable energy sources.

The construction of pumped-storage power plants is characterized by high approval rates among local residents, with the Yeongyang project, for example, receiving approximately 97% approval. In particular, for the Hapcheon and Yeongyang projects, the sites were selected by prioritizing regions suitable for pumped-storage construction through a site selection committee that included external experts. Local governments then voluntarily applied according to their priority ranking, resulting in high local acceptance. As a result, in the Ministry of Trade, Industry and Energy's selection review for new pumped-storage operators in December 2023, Hapcheon and Yeongyang were ranked first as the preferred and preliminary operators, respectively.

The new pumped-storage plants are also expected to have significant ripple effects, such as job creation during construction. According to an economic impact analysis commissioned by KHNP to the Gyeongju University Industry-Academic Cooperation Foundation for the regions where new pumped-storage plants are planned, the projects are expected to generate about 1 trillion won in production inducement effects and about 300 billion won in income inducement effects, greatly contributing to the economic revitalization and development of the construction areas.

Hwang Jooho, President of KHNP, said, "Through efforts to obtain permits, timely commencement of construction, and cooperation with local residents and businesses, KHNP and the local communities will grow together. We will also swiftly proceed with the construction of pumped-storage power plants so that the public can use clean electricity with peace of mind," adding, "Expanding pumped-storage construction will be a groundbreaking turning point for Korea's power industry to take a significant leap forward."