By Yoon Ja-young
President Moon Jae-in is expected to lose momentum for his drive to phase out nuclear energy - at least for a while - following a state commission’s decision to renew the construction of two nuclear reactors.
Analysts, however, say that direction has not changed and the country will move toward renewable energy in the long term.
The state commission, comprising 471 civilian jury members, recommended Friday that the construction of Shin-Kori 5 and 6, the two reactors in the southeastern port city of Ulsan, should resume.
Following President Moon’s campaign pledge of building a nuclear-free country, the construction had been temporarily halted, with Moon pledging to follow public opinion regarding the two reactors’ fate.
The commission decided that the construction of the reactors, which were about 30 percent complete, should resume, with 59.5 percent of the jury supporting resumption and 40.5 percent opposing it. About 1.6 trillion won ($1.41 billion) had already been invested in the construction.
Analysts, however, stress that the policy direction hasn’t changed and the transition to renewable energy will continue.
”The resumption of the nuclear reactor construction will have only limited impact on expansion of renewable energies,” said Jung Yeon-seung, an analyst at NH Investment and Securities.
“The government had announced that around 53 gigawatts of renewable-energy-generating facilities are needed by 2030, 80 percent of which will be solar and wind energy. The government is firm in its policy direction.”
Though the commission blocked the administration’s plan to suspend Shin-Kori 5 and 6, it gave momentum for energy transition. Among the jury, 53.2 percent said the ratio of nuclear energy should be slashed going forward.
Following the committee’s decision to support construction of the reactors, stocks related to nuclear power pulled themselves out of the doldrums. Doosan Heavy Industries and Construction, which set a consortium with Samsung Corp. and Hanwha Engineering and Construction for the Shin-Kori 5 and 6 project, had a rollercoaster ride in Friday’s trading. It plummeted to 18,200 won around 10:13 a.m., but suddenly skyrocketed to 20,200 won seven minutes later when the committee announced support for resumption. It closed at 19,400 won, down 1.27 percent from the previous day. Samsung Corp. and KEPCO, the state-run electric power company, closed higher than the previous day following fluctuations.
Woori Technology, a nuclear technology firm, gained 5.35 percent from the previous day.
Those related to renewable energy, however, suffered. Unison, which makes wind power turbines, soared by 18.66 percent in the early morning session, but fell after the commission’s decision. It closed 1.28 percent higher than the previous day.
The nuclear power industry avoided the worst-case scenario for power plant exports. There had been concern that suspension of construction would totally block exports, but the decision to resume opened doors. Currently, Korea is seeking to export nuclear power plants to several countries including the United Kingdom, the Czech Republic, Vietnam and Saudi Arabia.
Saudi Arabia plans to build two nuclear reactors next year, with bidding expected to start soon. The U.K. also has a construction plan of a 21 trillion won nuclear reactor, with one developed by Korea included in the list of candidates.