Power shortage risks rise as Hanam rejects KEPCO substation expansion

This undated picture shows a substation run by Korea Electric Power Corp. (KEPCO) in Hanam, Gyeonggi Province. Courtesy of KEPCO

By Ko Dong-hwan

• Published Aug 25, 2024 5:22 PM KST
• Updated Aug 26, 2024 3:25 PM KST

Concerns about a potential power shortage in Seoul and Gyeonggi Province are growing following Hanam City's rejection of Korea Electric Power Corp’s (KEPCO) plan to upgrade and expand its over 40-year-old substation in the city, according to industry watchers, Sunday.

Experts have speculated that the city authority's recent decision could jeopardize the state-run utility firm's plan to transmit eight gigawatts (GW) of electricity from power plants on the country’s east coast via a new power line, set to be completed in June 2026. This power line is crucial for supplying electricity throughout the capital region, particularly Gyeonggi Province, which is expected to face skyrocketing power demands due to the development of new semiconductor clusters on an unprecedented scale, the experts added.

KEPCO’s plan to build a new high-voltage direct current (HVDC) power line, stretching over 200 kilometers from Uljin in North Gyeongsang Province to the substation in Hanam, east of Seoul, is now expected to face delays following the city government’s announcement on Wednesday. Given the legal disputes KEPCO has announced it will pursue against Hanam, the construction of the power line is anticipated to be postponed by several more years.

Hanam city’s rejection has jeopardized the new power line's ability to operate at full capacity. The line was originally designed to extend to Yangpyeong County in Gyeonggi Province, where it would split, delivering four gigawatts (GW) to a substation in Gapyeong County to the north and the other four GW to a substation in Hanam. Currently, the Gapyeong substation is under construction.

The new power line is expected to serve as a vital conduit between the country’s east coast and the capital region. Coastal nuclear, coal-fired, and wind power plants are projected to generate up to 17.9 gigawatts (GW) of electricity this year. The capital region, home to over 26 million people — more than half of the country’s total population as of 2023 — will rely heavily on this power supply. Additionally, the semiconductor mega-cluster in southern Gyeonggi Province, encompassing nine cities such as Pangyo, Suwon, Yongin, and Pyeongtaek, will house fabless manufacturing plants, foundries, and R&D centers run by Samsung Electronics and SK Hynix. The Yongin cluster alone is expected to require 10 GW, which represents a quarter of the entire power demand from the capital region.

In addition to the burgeoning industrial sectors, power demands in the capital region are rising due to increased use of electric vehicles and air conditioning during the summer. According to the country’s 11th Basic Plan for Long-Term Electricity Supply and Demand, released in May, power demand is projected to reach 129.3 GW by 2038.

To meet these demands, substations need to convert the direct current (DC) from the HVDC power line into alternating current (AC) and then distribute it to the appropriate areas.

Experts have warned that, given the sharp increase in power demand, the indefinite delay of the new power line — often referred to as the “new power expressway” — could lead to significant electricity shortages in the capital region.

“The new power line, a state-funded project jointly pursued by the central government and our company, is crucial to address skyrocketing power demands due to increased air conditioning use and the growth of AI and data centers in the capital region,” a KEPCO official said during a press conference, Friday. “However, due to Hanam's refusal to approve the license for our substation, the resulting damage will ultimately burden the citizens.”

During the conference, KEPCO challenged Hanam’s objections to the disapproval — citing concerns about electromagnetic waves, a lack of consent from local residents, and claims of insufficient public welfare benefits.

“We’ve tested electromagnetic waves and confirmed safety. The substation’s facilities will also all go indoor, not left outside as they are now, improving its ambient scenery. And we’ve held many meetings with local residents to raise awareness of our new substation,” the KEPCO official said. “And according to the country’s Enforcement Decree of the Building Act, a substation, contrary to what the city government has argued, is just as critical to the public as other neighborhood living facilities like police stations and recreational centers.”