Korea delays shutdown of coal-powered plants amid energy crisis

Steam rises from the chimneys of the Seoincheon Combined-Cycle Power Plant in Incheon, Jan. 8. Newsis

Korea will delay the shutdown of coal-powered power plants as the government scrambles to secure electricity supplies amid an escalating energy crisis triggered by the conflict in the Middle East.

Speaking to The Korea Times on Monday, a senior official at the Ministry of Climate, Energy and Environment said the ministry will extend the operations of three coal-fired power stations that had been scheduled to close this year.

“The timetable for closing them is being rescheduled,” the official said.

Asked how long the shutdown would be delayed, another senior official said the details are still under discussion and that a final decision is expected to be made in the coming days.

This comes after President Lee Jae Myung instructed Minister Kim Sung-hwan to reconsider the shutdown plan, citing the need for “emergency measures” to prevent power shortages in the wake of U.S.-Israeli military strikes against Iran.

The move marks a major disruption to Korea’s policy to rid itself of all coal-powered power plants by 2040. After changing the name of the Ministry of Environment to the current one and restructuring its portfolio, the Lee administration has pledged a grand energy transition centered on emissions cuts, signaling a clear shift in policy priorities.

The power plants in question include Hadong Coal Power Plant Unit 1 in South Gyeongsang Province, which had been scheduled to be decommissioned in June, followed by Boryeong Unit 5 and Taean Unit 2 in South Chungcheong Province. Under the carbon reduction policy, they were expected to be gradually replaced by liquefied natural gas and renewable energy capacity over the coming decade.

All three are old, standard-design coal units of about 500 megawatts each, built in the 1990s as part of the nation’s baseload power fleet and now classified as “aging” plants targeted for early retirement under the coal phase-out roadmap.

However, the recent flare-up of conflict in the Middle East has rattled global energy markets, raising concerns in Seoul over potential disruptions to fuel imports and spikes in electricity prices. The government has already activated an “emergency energy response mechanism,” including measures such as stricter energy-saving campaigns for public institutions and calls for households to reduce consumption during peak hours.

According to Opinet, a fuel price information system run by the state-run Korea National Oil Corp., the nationwide average gasoline price hit 1,878 won ($1.24) per liter as of 2 p.m., up from 1,865 won the previous day. Meanwhile, diesel rose more than 12 won to 1,870 won, with prices higher in Seoul.

The government, which began capping refinery supply prices to gas stations on March 13, entered a second phase of the price-ceiling scheme on Friday, raising the caps by 210 won to 1,934 won per liter for regular gasoline, 1,923 won for diesel, stoking fears that the national average gasoline price could soon top 2,000 won.

As energy shortages grip countries across the world, the Japanese government has recently decided to loosen restrictions on coal use, allowing less efficient coal-fired power plants to bid in capacity markets in the name of energy security.