Bonghwa Pumped Storage Power Plant Project Worth 1.7 Trillion Won Selected for Preliminary Feasibility Study by Ministry of Economy and Finance

Yeongyang Power Plant Also Selected as Candidate for Preliminary Feasibility Study

The construction project for the Bonghwa Pumped Storage Power Plant, a key initiative promoted by North Gyeongsang Province, was reportedly selected as a final candidate for the preliminary feasibility study following the results of the third advisory meeting on public institution preliminary feasibility studies held by the Ministry of Economy and Finance on November 10.

With the project now selected as a candidate for the preliminary feasibility study, the Ministry of Economy and Finance plans to commission the Korea Development Institute (KDI) to conduct the study. The decision on whether to proceed with the project will be made based on the results.

Bird's-eye View of Bonghwa Pumped Storage Power Plant

North Gyeongsang Province has announced its intention to ensure the project passes the preliminary feasibility study, considering its importance as a key infrastructure for stable power supply.

At the end of December 2023, Yeongyang County (Korea Hydro & Nuclear Power) and Bonghwa County (Korea Midland Power) were selected as new pumped storage power plant operators by the Ministry of Trade, Industry and Energy, and the project was ultimately included in the 11th Basic Plan for Long-term Electricity Supply and Demand (February 2025).

Additionally, in July of the same year, the Yeongyang Pumped Storage Power Plant construction project was selected as a candidate for the preliminary feasibility study. With the latest selection of the Bonghwa project, prospects for advancing pumped storage power plant projects in North Gyeongsang Province have improved significantly.

To promote the construction of the pumped storage power plants, North Gyeongsang Province, together with Yeongyang County (Korea Hydro & Nuclear Power) and Bonghwa County (Korea Midland Power), has worked on attracting the power plants, conducting feasibility studies, and establishing basic plans. The province has also gathered a wide range of opinions through multiple resident briefings and expert advisory meetings in its efforts to secure selection as a candidate for the preliminary feasibility study.

North Gyeongsang Province aims to complete the construction of a 1GW (four 250MW units) pumped storage power plant in Yonghwa-ri, Ilwol-myeon, Yeongyang County, and a 500MW (two 250MW units) plant in Dueum-ri and Namhoeryong-ri, Socheon-myeon, Bonghwa County, by 2036.

Upon completion of the pumped storage power plants in Yeongyang and Bonghwa, it is expected that 140 billion won in statutory direct support funds and over 2.3 billion won in annual tax revenue will be secured under the Act on Assistance to Areas Surrounding Power Plants. With a total project cost of 4.3 trillion won (2.6 trillion won for Yeongyang and 1.7 trillion won for Bonghwa, all privately funded), the project is anticipated to have significant direct and indirect effects on production and employment, thereby boosting the local economy.

Lee Cheolwoo, Governor of North Gyeongsang Province, stated, "Pumped storage power plants are essential infrastructure for expanding renewable energy such as wind and solar power and ensuring a stable power supply. They are crucial for the successful implementation of national energy policy. We will thoroughly prepare and respond to ensure the project can proceed swiftly and successfully."