Experts urge strategic power plan for Honam semiconductor cluster
A parliamentary forum discussed power supply challenges for the Honam Semiconductor Cluster, where experts highlighted a significant shortfall in effective power capacity against future peak demand and recommended a strategic revision of the 12th Basic Plan for Long-term Electricity Supply and Demand.
Our take
What are the power supply challenges for Korea's Honam semiconductor cluster?
The proposed expansion of the Honam semiconductor cluster faces a significant power supply deficit, with effective capacity projected to be 14.2 GW against a future peak demand of 19.1 GW, prompting experts to urge a strategic revision of the 12th Basic Plan for Long-term Electricity Supply and Demand to include all available power sources and consider effective capacity over rated capacity.
The current planning for the 12th Basic Plan for Long-term Electricity Supply and Demand appears to underestimate the firm power needs of advanced industrial clusters like Honam's semiconductor cluster by relying on rated capacity rather than effective capacity. This oversight, coupled with a high reliance on intermittent renewable sources in the region, creates a projected supply-demand mismatch that could hinder industrial growth and energy security if not addressed through a more comprehensive and flexible energy strategy incorporating diverse generation sources.
What the source says
- For short-term stable power supply, all available power sources, including nuclear, coal, LNG, fuel cells, and renewables combined with ESS, must be mobilized.
- Long-term, low-carbon power sources should be expanded.
- Honam's effective power capacity of 14.2 GW is far short of its future peak demand of 19.1 GW, which includes the Honam semiconductor cluster's increased demand.
- The 12th Basic Plan for Long-term Electricity Supply and Demand requires a sufficient upward revision beyond conservative minimums, and equipment plans should be based on effective, firm capacity rather than rated capacity.
- The current nuclear power policy environment is 'gloomy' due to the absence of a carbon-free certification system and lack of private participation.
- Nuclear power entry regulations should be removed to ensure choice for the private sector, public, and businesses, mirroring swift policy shifts abroad.
- The 12th Basic Plan for Long-term Electricity Supply and Demand must be a strategic power plan supporting future advanced industries like semiconductors and AI, and national economic security.
For investors — For investors in Korean DER, the debate signals a potential shift towards prioritizing firm capacity and diverse generation sources, including nuclear and fossil fuels in the short term, to meet industrial demand, which could create new opportunities for dispatchable DERs like ESS combined with renewables, or even small-scale nuclear solutions if regulations ease.
Watch: Discussions and recommendations regarding the revision of the 12th Basic Plan for Long-term Electricity Supply and Demand.
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