2023-10-20 01:41:58
Korea Electric Association to hold the 7th Power Policy Forum in 2023
Searching for a just transition solution for power generation facilities and workers
An opportunity was prepared to seek solutions for a just transition for power generation facilities and workers in response to the drive for carbon neutrality. Just transition refers to a policy direction that minimizes the burden and damage to local and industrial workers who may be directly or indirectly affected in the implementation process for carbon neutrality.
On September 11, the Korea Electric Association held the 7th forum in 2023 at the Koreana Hotel in Jung-gu, Seoul under the theme of ‘Rational carbon neutral strategy for public power generation companies considering energy security.’ At the forum on this day, experts had in-depth discussions on ways to minimize damage to coal power generation facilities and workers that have contributed to national industrial development in the era of carbon neutrality.
The forum began with a presentation by Yunmo Koo, a professor at Seoul National University’s College of Engineering, on the topic of ‘Stranding of power generation facilities due to implementation of carbon neutrality.’
Professor Koo said, “It is necessary to calculate the size of stranded assets in order to evaluate the social costs for carbon neutrality and make reasonable investment decisions on power generation sources,” adding, “30 coal-fired power plants targeting 28 coal-fired power plants that will be abolished according to the 10th Basic Plan for Electricity Supply and Demand. Considering the yearly lifespan, the cumulative stranded amount is approximately 3.3 trillion won.” He continued, “If stranded assets are calculated for all coal-fired power plants by 2050, the scale will be much higher,” and “In the process of establishing future energy policies, decisions must be made in a way that can reduce social losses due to stranding of existing facilities.” “We do it,” he emphasized.
Yoo Seung-hoon, Dean of the College of Creative Convergence at Seoul National University of Science and Technology, gave a presentation on the topic, ‘Rational Policy Alternatives for the Fair and Orderly Retirement of Coal Power Generation.’
Professor Yoo said, “It is important to redefine the role of public power generation companies and the role of the government to suit the changing environment,” adding, “We will secure the stability of power supply by converting old coal power plants to LNG in a timely manner, while expanding various carbon-neutral businesses.” “It is necessary to proactively participate in the new system,” he advised. He added, “The government must provide institutional support so that public power generation companies can smoothly achieve carbon neutrality, and deduct a certain portion of investments made to implement carbon neutrality when calculating the debt ratio to ensure that they are not disadvantaged in management evaluation.”
Following the presentation, the discussion was chaired by Professor Park Jong-bae of the Department of Electrical and Electronic Engineering at Konkuk University, with Moon Yang-taek, head of the Power Industry Policy Division of the Ministry of Trade, Industry and Energy, Kwon Jeong-ju, head of the Carbon Neutral Strategy Department at KEPCO, Park Young-cheol, head of Korea Southern Power’s Development Department, Lee Jong-soo, professor at Seoul National University’s Graduate School of Technology Management and Economic Policy, and Jeong Hoon of the National Assembly. Related experts, including researchers from the Future Institute, attended and shared their opinions.
Director Kwon said, “The cost of implementing carbon neutrality due to the gradual reduction of coal power generation affects the entire population and industry,” and added, “Therefore, we need to pursue it in a way that minimizes the burden on the people.” He continued, “The stranded capitalization resulting from the abolition of coal power generation not only increases the financial burden of public power generation companies, but can also be passed on to the public in the form of electricity bills, so it is urgent to come up with various financial support measures and reasonable alternatives.”
Director Park said, “Coal-fired power plants can operate for regarding 50 years, so compensation for stranded assets due to decommissioning must also reflect the 50-year operation period.” He added, “It is not economically feasible to operate a coal-fired power plant, which has an economic emergency advantage, following operating it for only 30 years and then decommissioning it.” “It doesn’t fit from the side,” he said, raising his voice. He continued, “If the coal power plant is abolished, social conflict is expected as damage is caused to various stakeholders such as local residents, workers at partner companies, and small business owners in the surrounding area,” and “We are also planning support measures to minimize damage to the community and market.” “It needs to be prepared together,” he argued.
Professor Lee said, “Before full-scale abolition, it is necessary to prepare a social agreement and system on support and compensation measures to minimize unilateral sacrifice of stakeholders such as power generation operators, workers, and local communities.” He added, “We started reducing coal-fired power generation before Korea.” “There is a need to look at the systems and policies introduced by the country to achieve the goal of a fair transition,” he advised.
Commissioner Jeong said, “The damage and impact caused by coal phase-out is not just a problem for our country. “The importance of a just transition is being emphasized globally in order to minimize the side effects from this,” he said. “The principles, direction, and policy measures for a just transition are not concrete, so public discussion and consensus on this is necessary.” .
Manager Moon said, “Even though the operation life of a coal-fired power plant can be predicted from the beginning of construction, it is negative that support is provided using funds for this,” adding, “The government is not ruling out ways to use the fund and is considering various matters.” “We will draw a conclusion through review,” he said.
Reporter Lee Hoon hoon@kea.kr
© Electric Journal Unauthorized reproduction and redistribution prohibited
1697769517
#era #carbon #neutrality #discussing #transition
