Activation of the Energy Emergency Response Team
The Ministry of Climate, Energy and Environment announced on March 2 that Vice Minister Lee Hohyun presided over a meeting with relevant agencies to review the domestic energy situation following the large-scale airstrikes by the United States and Israel against Iran.
Lee Hohyun, Deputy Minister of Climate, Energy and Environment, is presiding over an energy situation briefing meeting related to the Middle East situation held at the Coal Hall in Jongno-gu, Seoul on the 2nd. Photo by Yonhap News
The meeting was attended by the Ministry, Korea Power Exchange, Korea Electric Power Corporation (KEPCO), Korea Hydro & Nuclear Power (KHNP), the five power generation companies, and the Korea Energy Economics Institute.
During the meeting, the Ministry and participating organizations reviewed the current domestic power supply and demand, the impact of the Middle East situation on this landscape, and response plans of state-run power utilities.
The Ministry stated that, as of now, the situation in the Middle East has had no impact on the domestic power supply and demand. Additionally, considering that electricity demand is expected to decrease due to rising spring temperatures, and that an increase in oil prices is typically reflected in the electricity market’s liquefied natural gas (LNG) prices with a lag of three to six months, it is projected that the short-term impact on the electricity market will be limited.
It was also determined that coal and directly imported LNG purchased by power generation companies are not sourced from the Middle East, and thus there is no direct impact from the current situation.
However, the Ministry stated that, should the situation become prolonged, or if the Strait of Hormuz is closed leading to a sharp rise in oil prices and potential disruptions in gas imports, it will strengthen monitoring of the Middle East in cooperation with state-run power companies and maintain an emergency response system. The Energy Emergency Response Team will also be activated to closely monitor the impact of the current crisis and respond swiftly as circumstances evolve.
Meanwhile, it was found that the major projects currently being pursued by KEPCO and its power generation subsidiaries in the Middle East have not been directly affected so far. Relevant agencies agreed to closely monitor local developments and prioritize the safety of dispatched personnel and the normal operation of projects going forward.
Vice Minister Lee Hohyun stated, "In these uncertain times, the Ministry and state-run power companies must work together to minimize the impact on the energy sector and ensure a stable power supply."
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