Korea to lose astronomical costs if life of aging reactors not extended

Kori Nuclear Power Plant, from right 1 to 4, in Busan [Photo provided by KHNP]

A total of 10 aging nuclear power plants in South Korea will have their operating licenses expire within the next seven years, according to the Korea Hydro & Nuclear Power Co. (KHNP).

These power plants have collectively sold an average annual electricity volume of 57.64 million watts hour (MWh) between 2013 and 2022, with an average settlement price of 52.5 won ($0.04) per kilowatt-hour (kWh).

If all 10 plants fail to receive timely approval for continued operation and are replaced by liquefied natural gas (LNG) power generation, Korea will incur astronomical costs exceeding 107.6 trillion won over the next decade.

The Kori-2 reactor, in particular, has already been suspended due to the lack of approval for continued operation by the authorities since its license expired on April 8.

KHNP aims to restart operations by June 2025 through facility upgrades and preparations for continued operation. However, the estimated substitute costs that may arise from the delay in restarting the nuclear power plant amount to about 1.12 trillion won per year.

While the previous government showed hesitancy towards continued operations due to safety concerns regarding aging plants, KHNP says that Korea’s criteria for assessing the safety of continued operation are very strict.

These criteria align with the International Atomic Energy Agency’s recommendation for “Periodic Safety Review” and even incorporate the standards for license renewal applied in the U.S.

Experts believe that the approved nuclear power plants have demonstrated their stability as meeting such stringent safety standards would require improvements in all aspects of the facilities, excluding the reactor itself.

For energy-importing Korea, nuclear power plants can generate electricity for two to three years even if other energy imports are cut off, making them increasingly important for energy security.

In anticipation of high electricity demand this summer, KHNP is planning to operate all of its reactors at full capacity except for three reactors that are in planned preventive maintenance in the second week of August when peak demand is expected.

According to the nuclear power industry, the trend of continued operation is prevalent worldwide.

Among the 439 operational nuclear power plants globally, 233 plants, accounting for 53 percent, have received approval for continued operation.

Out of these, 177 plants or 40 percent are currently in operations. In the U.S., 91 percent of the 92 operational nuclear power plants have received continued operation approval, with 52 plants already operating for over 40 years.

Notably, among the 13 reactors of the same design as Korea’s Kori-2 produced by Westinghouse, ten reactors are in continued operation. In 2020, Point Beach Nuclear Plant applied for continued operation for a total of 80 years.