Korea weighs early coal phase-out for 12th BPSLD amid rising power demand
The Ministry of Climate, Energy and Environment and the General Committee for the 12th Basic Plan for Long-term Electricity Supply and Demand (BPSLD) announced a public policy debate on September 18, 2026, to discuss plans for an early coal power phase-out by 2040.
Our take
What does Korea's 2040 coal phase-out debate mean for flexibility investors?
Korea's 2040 coal phase-out debate does not yet create a defined opportunity for flexibility investors, because the 12th basic plan for electricity supply and demand had not set the retirement pace or replacement mix.
The debate treats retirement timing, replacement generation and grid reinforcement together, so none was settled at this stage. The flexibility opportunity depends on how much of the retired capacity the final plan assigns to storage, gas or grid reinforcement.
What the source says
- The 7th public policy debate on the 12th Basic Plan for Long-term Electricity Supply and Demand is scheduled for September 18, 2026, at 10:00 AM.
- The debate will focus on the '2040 early coal power phase-out plan' to address the climate crisis.
- A key challenge in the discussion is how to balance coal power reduction with stable electricity supply, especially given anticipated increases in electricity demand.
- The debate will cover the timing and speed of phased coal power retirement, securing alternative generation sources, and reinforcing the power grid.
- The Ministry of Climate, Energy and Environment and the General Committee plan to review and reflect public opinions from the debate in the 12th BPSLD.
For investors — Merchant storage investors and optimisers should wait for the replacement mix in the final plan before pricing a coal exit into flexibility revenue.
Contracted storage investors should check whether the final plan sets storage volumes, and treat them as targets until a tender is announced.
Watch: Outcome of the 7th public policy debate on the 12th BPSLD and subsequent announcements regarding the finalization of the 12th BPSLD.
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