South Korea to Spend $28 Billion on New Power Plants

South Korea plans to spend 37 trillion won ($28.5 billion) building more nuclear and gas-fired power plants by 2022, to reduce its dependency on oil and meet rising demand for energy.

The country will build 12 more nuclear-powered plants, seven coal-fired plants and 11 fueled by liquefied natural gas by 2022, the Ministry of Knowledge Economy said in a statement today. The projects are part of a government power supply-and-demand plan that outlines investment for the next 15 years.
South Korea, which imports almost all its oil, is trying to cut reliance on crude and diversify energy sources after oil prices in New York climbed to a record $147.27 a barrel in July. By the end of 2022, power-generating capacity in Asia’s fourth- largest economy will rise to 100.9 gigawatts from the current 65.9 gigawatts, the ministry estimates.

“By building more nuclear plants, the most economical and cleanest energy, South Korea can cope with high oil prices and reduce greenhouse-gas emissions,” said Yun Hee Do, an analyst at Korea Investment & Securities Co.

Nuclear plants will provide 48 percent of generating capacity by 2022, up from 34 percent this year, the ministry said in its statement. The country will reduce reliance on oil-fired plants to 0.2 percent from 1.9 percent.

Asia’s third-largest buyer of crude oil also plans to expand the use of alternative energy. Under the government’s long-term plan, renewable-energy sources including solar, wind and water, should account for 11 percent of power consumption by 2030 from the current 2.2 percent.

Bloomberg