"The Cheapest Among All Power Sources"...Why the World Is Reactivating Aging Nuclear Plants [Digging Energy]

Approval for Continued Operation of Kori Unit 2
Momentum Expected for Reviews
of 9 Additional KHNP Nuclear Plants
Concerns Over "Nuclear Phase-Out Season 2"
Under Lee Jaemyung Administration
AI Expansion Drives Massive Power Deman

The Nuclear Safety and Security Commission approved the continued operation of Kori Nuclear Power Plant Unit 2 in a vote held at its meeting on the 13th, raising expectations that the review process for the remaining nine nuclear power plants, for which Korea Hydro & Nuclear Power has applied, will gain momentum. In a situation where electricity demand is surging due to decarbonization efforts and artificial intelligence (AI), many believe that the country could not afford to overlook nuclear power, which is both cost-effective and low in carbon emissions.

"The First Step Taken"...Reviews of the Remaining 9 Nuclear Plants Expected to Accelerate

The deliberation on the continued operation of Kori Unit 2 passed after being submitted as the third agenda item of the day. Each time the agenda was raised, some commissioners raised issues with the details of the accident management plan and the radiological environmental impact assessment. During the meeting, the commission decided to revise five regulations and notifications to specify the evaluation methods for the accident management plan and the radiological environmental impact assessment.

With the issues that were contentious during the review of Kori Unit 2 now addressed, the process of approving continued operation for subsequent nuclear plants is expected to proceed swiftly. The commission stated, "With clearer evaluation standards, future related reviews will be conducted more efficiently and systematically."

The decision on whether to allow continued operation of Kori Unit 2 has been seen as a litmus test for the Lee Jaemyung administration's nuclear energy policy. Some had expressed concerns that, following the Moon Jaein administration, a "phase two of nuclear phase-out" might be coming. However, the analysis is that the need for massive electricity supplies to support the expansion of artificial intelligence (AI) has shifted support toward continued nuclear plant operation.

The nuclear industry is calling for the swift approval of continued operation for the other nine nuclear power plants for which Korea Hydro & Nuclear Power has applied, in order to ensure a stable domestic power supply. The company has applied for continued operation of Kori Units 3 and 4 in Gijang County, Busan; Hanbit Units 1 and 2 in Yeonggwang County, South Jeolla Province; Hanul Units 1 and 2 in Uljin, North Gyeongsang Province; and Wolseong Units 2, 3, and 4 in Gyeongju, North Gyeongsang Province.

Among these, Kori Units 3 and 4 already ceased operation after their licenses expired on September 28, 2023, and August 6, 2024, respectively. Hanbit Unit 1 will stop operation on December 22, 2024, and Unit 2 will cease operation on September 11, 2025. The total generation capacity of these nine units amounts to 7.8 GW.

Continued operation of aging nuclear plants has already become a global trend. As of December 2024, 238 out of 439 operating nuclear reactors worldwide (54%) have been approved for continued operation. Of these, 204 reactors (46%) are already in extended operation.

In the United States, 86 out of 94 operating reactors (91%) have received approval for continued operation, with 64 (68%) currently running. Eight reactors have had their lifespans extended to 80 years. In Europe, 72 out of 97 operating reactors (74%) have been approved for continued operation, with 64 (66%) currently in extended operation.

Reactivating Aging Nuclear Plants Is the Most Cost-Effective..."Contributing to Electricity Price Stabilization"

The global expansion of continued nuclear plant operation is due to the ability to ensure safety even after the original design life. According to nuclear experts, the original 40-year design life of a reactor was based on harsh operating conditions, so major equipment replacements can sufficiently extend their use.

In particular, reactivating aging nuclear plants is the most cost-effective option among all power generation technologies, including solar and wind. It is an effective way to supply electricity both cheaply and reliably.

According to the International Energy Agency's (IEA) report "Projected Costs of Generating Electricity 2020," the levelized cost of electricity (LCOE, based on the median value) for "long-term operation of nuclear power plants through life extension" was found to be $32 per MWh. This is significantly lower than the main competing technologies: onshore wind (over 1 MW) at $50, utility-scale solar at $56, coal-fired power at $88, and gas-fired power at $71 per MWh. The LCOE for new nuclear plants was $69.

LCOE refers to the average cost of total electricity produced by a specific energy source over its lifetime, divided by the amount of electricity generated. A lower LCOE means that electricity can be produced more cheaply and supplied to consumers at a lower price.

Nuclear power is a low-carbon energy source and can contribute to carbon neutrality. Nuclear power's carbon emissions are only 1-2% of those from fossil fuel generation. A Korea Hydro & Nuclear Power official explained, "Nuclear power accounts for 81.2% of domestic low-carbon energy sources, making it a key energy source for decarbonizing the energy sector and reducing carbon emissions."

Since the outbreak of the Ukraine-Russia war, the importance of energy security has also become a driving force behind the expansion of continued nuclear plant operation. As an "energy island," South Korea could continue to generate electricity for two to three years through nuclear power even if energy imports were completely halted.

Yoo Seunghoon, Professor at the Department of Future Energy Convergence at Seoul National University of Science and Technology, stated, "Just as a car can be used continuously with proper maintenance, if safety is ensured, the continued operation of aging nuclear plants is an effective means to supply stable electricity to AI data centers and help stabilize electricity prices."