Korea Plans To Gradually Phase Out Coal-fired Power Plants

 The South Korean government is pushing the five major power companies that have long relied on coal (South East, South, Central, West, and East-West Power) to accelerate business restructuring in order to achieve the plan of completely shutting down coal-fired power plants by 2040 and meeting the national greenhouse gas reduction target of 68.8% to 75.3% by 2035 compared to 2018 The strategic core of these companies is shifting comprehensively from coal power to renewable and clean energy, actively expanding investments and deployments in offshore wind power, solar energy, clean hydrogen, and energy storage systems (BESS) domestically, while also developing new energy businesses in overseas regions such as the Middle East, Southeast Asia, and North America. To enhance transformation efficiency and operational competitiveness, various enterprises have also introduced innovative technologies such as artificial intelligence (AI) to optimize power system management and asset operations.at have long relied on coal (South East, South, Central, West, and East-West Power) to accelerate business restructuring in order to achieve the plan of completely shutting down coal-fired power plants by 2040 and meeting the national greenhouse gas reduction target of 68.8% to 75.3% by 2035 compared to 2018 The strategic core of these companies is shifting comprehensively from coal power to renewable and clean energy, actively expanding investments and deployments in offshore wind power, solar energy, clean hydrogen, and energy storage systems (BESS) domestically, while also developing new energy businesses in overseas regions such as the Middle East, Southeast Asia, and North America. To enhance transformation efficiency and operational competitiveness, various enterprises have also introduced innovative technologies such as artificial intelligence (AI) to optimize power system management and asset operations.

 To systematically accelerate the transition, the Korean government is considering integrating existing public enterprises and possibly establishing new renewable energy public enterprises to improve efficiency. At the same time, South Korea, as the seventh largest coal power producer in the world, has joined the "Powering Past Coal Alliance" (PPCA), which has attracted global attention. Its current situation, where about 30% of its electricity still relies on coal, sends a strong signal of commitment and is expected to drive high coal-dependent countries to accelerate their transition. The PPCA points out that if South Korea can accelerate the phase-out of coal power, implement clean investments, and achieve a just transition, it will significantly enhance its international investment attractiveness and play a key leadership role in the energy transition in the Asia-Pacific region.