Korea Hydro & Nuclear Power (KHNP) and Doosan Enerbility signed a KRW2,900bn ($2.3bn) component supply agreement construction of units 3&4 at the Shin-Hanul NPP in Uljin, North Gyeongsang, according to the Ministry of Trade, Industry& Energy (Motie). Construction of the two units was suspended in 2017 as part of the nuclear phase out policy, which is now reversed. Construction of the units is expected to begin next year.
Doosan Enerbility will manufacture and supply key components such as reactors, steam generators and turbine generators over the next 10 years for KHNP. Doosan Enerbility has already placed orders worth KRW45bn with its sub-contractors, and plans to make additional KRW210bn order this year. KHNP plans to place around KRW1,400bn worth of orders in the next three years.
The Shin-Hanul 3&4 construction project is currently undergoing an environmental impact assessment, which is scheduled to be completed by the summer. The target is to start construction in 2024. Shin-Hanul 3 should be completed by 2032 and unit 4 by 2033.
The government also introduced its plan to achieve KRW5,000bn by exporting nuclear reactor parts and encouraging 100 small- and mid-sized local nuclear export companies by 2027.
Meanwhile, Motie also that unit 2 at the Kori NPP, which began commercial operations in 1983, must halt operations for two years after it operating licence expires in April. The extension of the permission, which requires a safety assessment from the regulators and facility improvements, should have been started about 3-4 years ago. Kori 2 will restart operation in June 2025. The suspension is expected to cost an additional $1.17bn a year if its output is replaced with liquefied natural gas.
In January, Minister of Trade, Industry & Energy, Lee Chang-yang said South Korea the nuclear share in total energy sources will increase to 34.6% by 2036 from 23.4% in 2018as part of South Korea’s10th basic plan for long-term electricity supply and demand.
President Yoon Suk Yeol has pledged to reverse the nuclear phase-out policy of the previous administration, which had sought to decrease the number of plants in operation to 17 by 2034. Currently, 20 of South Korea's 25 nuclear reactors are operational, and four others are under maintenance. Nuclear power currently generates about 30% of South Korea's electricity.
The increased target for nuclear generation under the new plan reflects the start-up of six new reactors by 2033 (Shin Hanul units 1-4 and Shin Kori units 5&6) as well as the continued operation of 12 existing reactors. Nuclear generating capacity is expected to increase from 24.7 GWe in 2022 to 28.9 GWe in 2030 and to 31.7 GWe in 2036.
