[서울신문] Shinhanul Unit 3 and 4 license extension… Leaving’existence destiny’ to the next regime

Construction plan approval extended to December 2023
Ministry of Industry “temporary permission not to resume business”
KHNP alleviates concerns over large scale lawsuits

The period of approval for the construction plan of Shin Hanul Units 3 and 4 has been extended. The fate of the two nuclear power plants was eventually decided by the next regime.

The Ministry of Trade, Industry and Energy announced on the 22nd that it would extend the approval period for the construction plan of Shinhanul Units 3 and 4 until December 2023. The Ministry of Industry explained that the extension of the period is “to prevent the disadvantages of Korea Hydro & Nuclear Power, which will occur when the business license is canceled rather than reopening the business, and to maintain the business license for a limited time until the establishment of a system for smooth business termination.”

KHNP received a permit from the government for the power generation project of Shin Hanul Units 3 and 4 in February 2017, but construction was stopped due to the government’s policy of leaving nuclear power plants. If the power generation business permit is not obtained under the Electricity Business Act, the existing permit will be canceled, which is until the 26th. KHNP said on the 8th of last month, “According to the government’s energy conversion policy, if the power generation project permit is canceled in a situation where it is difficult to promote the Shinhanul 3 and 4 project, participation in new power generation projects will be restricted for the next two years. In this case, it is difficult to secure the capacity of the 9th Basic Electric Power Supply and Demand Plan in a timely manner.” KHNP requested that the permission for power generation projects be maintained until a separate administrative measure or related laws are established for the enactment of legislation and cost preservation.

In response, the Ministry of Industry decided that it was difficult to cancel the project license under the Electricity Business Act because KHNP had not received approval for the construction plan of Shinhanul 3 and 4 due to the energy conversion policy without any fault. The Ministry of Commerce, Industry and Energy decided to apply the principle of preservation of expenses expenditures legitimately and appropriately as stated in the roadmap for energy conversion by the government for the extension period of approval for construction plans. The Ministry of Commerce, Industry and Energy announced a legislative amendment to the Electricity Business Act in September last year with regard to conserving the cost of energy conversion, such as the completion of the business, and plans to implement it after the revision as soon as the Ministry of Legislation is reviewed.

With the extension of approval for the construction plan, KHNP can alleviate the fear of getting involved in a large-scale damages lawsuit. About 779 billion won has already been invested in the construction of the site and pre-production of the main equipment for Shin Hanul Units 3 and 4. Of this, KRW 4927 billion is the amount that Doosan Heavy Industries & Construction invested in nuclear reactor facilities and turbine generators.

Reporter Seung-Hoon Kim [email protected]