The working-level draft of the 11^th Basic Plan on Electricity Supply and Demand (the “Draft Plan”) was released on May 31, 2024 for public hearing and reporting to the standing committee of the National Assembly, and after certain adjustments, it was finalized and confirmed by the Ministry of Trade, Industry and Energy (the “MOTIE”) on February 21, 2025 (the “11^th Basic Plan”). For a summary of the key details of the Draft Plan, please refer to our previous legal update from June 2024 (Link).

The key changes between the finalized 11^th Basic Plan and the Draft Plan are as follows: 
 

The finalized/announced 11^th Basic Plan envisages increased renewable energy generation capacity compared to the Draft Plan. The expanded target has been the result of: (i) recommendations to expand renewables, including from the Ministry of Environment, and the Presidential Commission on Carbon Neutrality and Green Growth, (ii) government-wide policy efforts such as expanding floating solar capacity and deregulating the rules on separation distance between solar projects, and (iii) enhanced grid capacity to accept additional renewables capacity due to the curtailment rate being increased by the relevant authorities. With the expanded target for renewables capacity, the target for additional large-scale nuclear power units to be newly-built has been reduced from three units to two units.

With the 11^th Basic Plan now confirmed, it is expected that measures which had been in the planning for the construction of new facilities, fuel procurement and policies for expanding the supply of carbon-free energy will be carried out in earnest. Further, it is expected that the 11^th long-term transmission and substation facilities plan will be established in the first half of this year, with the 16^th long-term natural gas supply plan to be established in the latter half of this year. In addition, competitive bidding markets will be designed and implemented for (i) new LNG-fired generation capacity, (ii) both general and clean hydrogen power generation, and (iii) the selection of new developers for battery energy storage systems (“BESS”) and pumped hydro. Accordingly, it is advisable that businesses closely monitor the progress of such follow-on activities and, if necessary, consider taking active steps to present their views and opinions through the relevant forums.

^[1]   Small modular reactor.

[Korean Version]