Korea likely to expand LNG power in 12th electricity plan
The Ministry of Climate, Energy, and Environment indicated that gas power generation will inevitably increase, suggesting the 12th Basic Plan for Long-term Electricity Supply and Demand will likely include measures to expand LNG power, revising previous reduction targets.
Our take
Will more gas power in Korea's next electricity plan reduce the role of battery storage?
Whether more gas in Korea's 12th electricity plan reduces the role of battery storage depends on the plan's final renewable targets and on whether new gas is assigned balancing work or firm capacity.
The government plans 100 GW of renewables by 2030 and 200 GW by 2040, and that build-out, not the gas headline, sets the balancing need storage serves. New gas competes for that work only if the final plan assigns it a flexible role rather than combined heat and power supply.
For investors — Contracted storage investors should read the final plan's renewable and storage figures rather than the gas headline, since storage demand follows the renewable build-out, not the gas share.
Merchant storage investors and optimisers should model, not assume, how more gas at the margin changes daily spreads, because the plan does not set whether peak prices tied to LNG costs widen or narrow them.
Watch: Finalization and announcement of the 12th Basic Plan for Long-term Electricity Supply and Demand in October.
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