[Energy-topia] How to Make Cheap Nuclear Power Expensive

South Korea's Affordable and Stable Nuclear Power: The Foundation for Rapid Growth
Policy Risk Is the Biggest Cause of Nuclear Plant Construction Delays
Construction Timelines Can Be Reduced Depending on Government Determination

In August of last year, Ghana in Africa signed a contract to introduce the small modular reactor (SMR) "Voygr" developed by the American company NuScale. Ghana and NuScale plan to build 12 SMR modules, each with a capacity of 77MW. This would allow them to generate 924MW of electricity, similar to the output of a large-scale nuclear power plant. If the project proceeds smoothly, it will mark the first case of SMR adoption in Africa. The main beneficiary is expected to be Doosan Enerbility, which is the second-largest shareholder and a key partner of NuScale Power.

The reason underdeveloped African countries are showing interest in SMRs is to address their severe power shortages. Rapid economic growth requires affordable and stable electricity, and they believe SMRs can fulfill this role. In addition to Ghana, several countries including Kenya, Uganda, Togo, and Ethiopia are also interested in introducing nuclear power plants, including SMRs. Leading nuclear power countries such as the United States, Russia, and China were the first to set their sights on the African market. Korea Hydro & Nuclear Power and Korea Electric Power Corporation are also actively moving into the market.

From the perspective of African countries, Korea is a role model that rose to become an industrial powerhouse by utilizing inexpensive electricity. After the Korean War, Korea, which had been left in ruins, built coal-fired power plants to resolve its power shortages. While coal-fired plants are now criticized as a major cause of global warming, without them, the economic prosperity Korea enjoys today would not have been possible.

After the oil crisis in the 1970s highlighted the importance of energy security, Korea accelerated the construction of nuclear power plants. As a result, the first Kori Nuclear Power Plant began operation in 1978, followed by a series of additional plants.

The Chernobyl nuclear disaster in 1986 sparked a global anti-nuclear movement. While the nuclear industries in advanced countries like the United States stagnated, Korea seized the opportunity to achieve nuclear self-reliance. From the mid-1980s to the late 1990s, 12 new nuclear power plants began operation. It took five to seven years to build a single plant.

The Uljin Units 5 and 6, the first Korean standard nuclear reactors (OPR 1000), began operation after seven years of construction. By standardizing construction methods and shortening construction periods, Korea was able to secure economic efficiency and maintain low electricity prices. This became the foundation for the growth of Korean manufacturing in the 1980s and 1990s.

Recently, when President Lee Jaemyung remarked, "It takes 15 years just to build a nuclear power plant, so we need to massively expand renewable energy," the nuclear industry expressed concern that this could signal the arrival of "Nuclear Phase-Out Season 2."

The nuclear plant in Korea that took the longest to build was Shin Hanul Unit 2, which required 12 years and 9 months from groundbreaking to commercial operation. The original construction period was seven years, but it was extended due to enhanced safety measures as Korea transitioned to the third-generation standard reactor (APR1400), as well as delays caused by the nuclear phase-out policy under the Moon Jaein administration. The biggest factor influencing construction periods is not technology, but policy risk.

Conversely, this means that the government’s determination can significantly reduce nuclear power plant construction times. If safety is prioritized, regulations are streamlined, and social controversies are minimized, completion within 10 years is possible. Korea already has experience with 10 APR1400 reactors either built or under construction domestically and abroad.

If, as in the past, the government stirs up anxiety and construction is delayed by opposition from anti-nuclear civic groups, the construction period could stretch to 15 years, as President Lee mentioned. Delays reduce the economic efficiency of nuclear power plants. Likewise, if the expansion of renewable energy leads to more frequent reductions in nuclear plant output and lower operating rates, the advantage of nuclear power as a "low-cost energy source" will disappear. One wonders if anti-nuclear organizations are actually hoping for such a scenario.