Korea weighs LNG CHP for AI, semiconductor power needs
The 12th Basic Plan for Electricity Supply and Demand (Jeonggibon) committee has projected peak electricity demand to reach 158.4 GW under the standard scenario and 165.0 GW under the upper scenario by 2040, reflecting new power demands from major projects.
Our take
Will Korea's delayed capacity market hold back new gas-fired power for AI and chip demand?
Korea's delayed capacity market was holding back new gas-fired power for AI and chip demand in August 2026, as new LNG plants can enter only through it and it had not passed its 2024 pilot.
Even after an award, permitting, environmental assessment, construction and the gas turbine shortage add years, so each month the market stays closed pushes supply further out. What decides delivery is when the market opens and how much volume it offers.
For investors — Gas-fired and CHP developers should prepare for the first capacity market round and plan for losing a limited auction, since no project can be scheduled before the opening date, volumes and criteria are published.
Data centre and industrial power buyers should not count on new on-site or nearby CHP in the near term and should confirm grid supply timing at their chosen site first.
Watch: The ongoing delay in the full launch and clarification of the Capacity Market's specific rules and bidding volumes.
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