Amid debates about the need to give KEPCO the power of new and renewable energy power generation projects in order to increase the proportion of renewable energy generation, environmental organizations are also showing opposition.
There is concern that if KEPCO enters the renewable energy business, investment in renewable energy in the private sector will decrease, which will prevent the increase in the proportion of renewable energy and realization of carbon neutrality in the long term.
Climate Solutions, an environmental group, announced that it will hold a press conference on the afternoon of the 16th at the Parliament Building in Yeongdeungpo-gu, Seoul, calling for the withdrawal of KEPCO’s plans to enter the renewable energy power generation business. On this day, officials from the Energy Sharing and Peace·Energy Conversion Forum, the National Federation of Citizen Development Cooperatives and the Federation of Environmental Movements will also participate.
Environmental groups also move back… “Stop private energy investment”
The backlash against KEPCO’s entry into the renewable energy business has been mainly from the power generation industry, such as the Wind Industry Association and the Private Power Generation Association. The initial issue was the concern that the neutrality of the power grid would be compromised. It is argued that if KEPCO, which manages power grid infrastructure, enters the renewable energy business, it will be more difficult to connect private grids (power grid connection).
Their biggest concern is the revision of the’Electricity Business Act’, which restricts two or more types of electricity business combined with the same business. KEPCO, an electric power company, sells electricity purchased from each power generation company to consumers. If the amendment to the law is passed, KEPCO can engage in large-scale renewable energy power generation projects.
The industry revised the Electricity Business Act based on the fact that KEPCO has already indirectly entered the market through six power generation subsidiaries, and that KEPCO’s power generation business, which manages the grid infrastructure, is advancing into the private sector can undermine power grid neutrality. Are against.
Environmental organizations are putting their strength on the voice of opposition, saying that KEPCO will monopolize the energy market, including renewable energy, to prevent private businesses from participating.
An official from Climate Solutions said, “In fact, it is difficult to have a private enterprise that can compete fairly with KEPCO, which monopolizes the domestic electricity market. In the mid to long term of the year, it will act as an obstacle to realizing carbon neutrality in 2050 as well as renewable energy 3020.”
“KEPCO’s plan to advance into the renewable energy business cannot gain consensus among citizens, shareholders, and stakeholders in the power industry.” “Allowing KEPCO’s renewable energy power generation business in such a situation gives preference to’dinosaur companies’ It is to provide and increase KEPCO’s rice bowl is not free from criticism,” he added.
KEPCO “No damage to private businesses”
KEPCO is in a position to respond by strengthening regulations related to disclosure of power grid information and prohibited acts. To alleviate industry concerns, the company also promised to improve its internal accounting and organizational division, reorganize departments such as disclosure of information on the power grid, and change internal rules.
It is argued that the participation of large-scale projects such as offshore wind power, farming and salt farming type solar power, which is difficult for power generation subsidiaries and private businesses to participate in, will not cause any damage to private businesses as the scale and scope of the projects are limited.
At the same time, KEPCO explained that its participation in the renewable energy business will result in four major expected effects: increasing the national benefit, creating a private ecosystem, driving related industries, and increasing acceptability.
It is believed that it can absorb the factors that raise electricity prices by reducing the generation cost of new and renewable energy. He also emphasized that KEPCO can help expand the ecosystem by building a large-scale renewable energy infrastructure and creating jobs at the same time.
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Meanwhile, despite such a backlash, some amendments to the Electricity Business Act, which allow KEPCO to participate in the renewable energy business, are expected to pass smoothly. The bill, which was submitted to the National Assembly by Song Gap-seok and Democratic Party lawmakers in July last year, did not exceed the threshold of the plenary session in the 19th and 20th legislatures, but the ruling party has been discussing it again recently.
An industry official said, “According to the draft 9th Basic Plan for Power Supply and Demand, the capacity of new and renewable energy facilities from 16.1 gigawatts (GW) as of December 2019 must be increased to 78.1 GW by 2034.” Because it is important to increase the value, public opinion is forming that KEPCO’s business participation is necessary.”