KIST researcher urges Korea to link energy strategies for global markets
A KIST researcher argues that Korea's national strategic technology, SEED, and mega projects lack critical connections between electricity supply and demand, leading to significant spatio-temporal mismatches. The author highlights that mega projects like the Yongin semiconductor cluster need approximately 21 GW now, while Small Modular Reactor (SMR) commercialization is targeted for 2035.
Our take
Will Korea's chip and AI data centre power demand open a market for corporate renewable PPAs?
It raises the demand but does not yet create the market: chip makers and data centres need specific kinds of clean power on fixed timelines, and this opinion piece by a KIST researcher argues that the tariffs and direct PPA rules to deliver it still have to be fixed.
In favour: the pressure comes from export customers, not subsidies, so it will not fade with a policy change, and it splits in two, RE100 chip buyers who accept only renewables and data centres seeking round-the-clock carbon-free power that can include nuclear. Against: the demand sits where connection approvals are scarce, the capital region, and new carbon-free supply such as SMRs is about a decade away, so near-term deals rest on renewables and flexibility that can actually reach that load. What decides it is reform of regional and time-of-use tariffs and of direct PPA rules; the author's own example is the Jeju smart grid trial, which lost its companies when no matching tariff followed. This is one researcher's proposal, not a government plan.
What the source says
- Lee Sang-hyeop The author proposes establishing electricity connection plans for each mega project, detailing how much, what kind, where, and when electricity will be sourced.
- Lee Sang-hyeop The author advocates for reforming regional and time-of-use electricity tariffs and direct renewable energy Power Purchase Agreement (PPA) mechanisms.
- Lee Sang-hyeop The author suggests that mega projects should become the initial customers for SEED projects through long-term purchase agreements, citing Google's 500 MW PPA with Kairos Power for SMRs.
- Korea's 2040 peak electricity demand provisional estimate increased by 26.8 GW in April 2026.
- Lee Sang-hyeop The author notes that global customers for semiconductors demand renewable energy use (RE100), while AI data centers increasingly require 24/7 carbon-free electricity, which can include nuclear power.
- Korea's 12 national strategic technologies were reorganized into 10 in June 2026.
For investors — Solar and wind developers: the buyers with the firmest need are chip makers bound by RE100; price offers on current direct PPA rules, since the reform argued for here is only proposed.
Corporate buyers and data centre developers: in the capital region, grid connection approval comes before any power contract; secure that first.
VPP operators and storage investors: matching supply to demand by time and place is the author's core case, but regional and time-of-use tariffs, the rule that would pay for it, are not announced.
Watch: Discussion or proposals regarding new electricity connection plans for national strategic projects, or reforms to regional/time-of-use tariffs and direct PPA regulations.
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