The South Korean government is accelerating its three major mega projects, which are expected to drive significant power demand, including semiconductor and artificial intelligence (AI) data centers. However, the expansion of transmission and substation networks has emerged as a critical issue. Without timely infrastructure development to transmit generated power to demand centers, there are concerns about potential "power bottlenecks" that could hinder these mega projects.
According to industry sources, the Honam region, designated as a semiconductor production hub, is already facing saturation issues in its power system due to a concentration of renewable energy generation facilities.
Korea Electric Power Corporation (KEPCO) has designated 205 substations nationwide as "system management substations" due to system saturation expected in 2024. All substations in Honam and Jeju are included in this designation. As a result, the connection of new renewable energy generation facilities in the Honam region is generally restricted until the expansion of transmission and substation facilities is completed in 2031.
With the establishment of large-scale power demand centers such as semiconductor production sites and AI data centers, the need to restructure the power system in Honam has become even more pressing. The semiconductor production hub is expected to house four memory fabs, which are estimated to require 6.3GW of power just for factory operations.
While the Honam region is not lacking in power generation capacity, with a total capacity of approximately 23.3GW as of 2025, significantly exceeding the local demand of about 5GW, the relatively low local demand has led to repeated issues of system saturation and renewable energy output control when attempting to transmit power to other regions. The anticipated establishment of large semiconductor production facilities could help alleviate the burden on the regional transmission network and output control by enabling a "local production for local consumption" effect.
The key challenge lies in connecting the power generated in the region to the semiconductor industrial complex. Even with sufficient generation capacity, if the connection lines and substation facilities are not constructed in a timely manner, it will be difficult to supply the necessary power reliably.
Moreover, the need for system reinforcement may increase further with the addition of large-scale power sources such as new nuclear power plants. To supply power generated from the Hanbit Nuclear Power Plant to the semiconductor production hub, it will be necessary to assess the existing system's capacity and build additional transmission and substation networks.
Building a power network takes considerable time. According to KEPCO, the standard construction period for a 345kV transmission line is nine years. More than half of the planned transmission and substation projects are already delayed due to local opposition and permitting issues.
There are calls to explore ways to reduce reliance on long-distance transmission networks and secure stable power sources near demand centers.
Professor Kang Cheon-gu, a visiting professor at Inha University's Graduate School of Manufacturing Innovation, noted, "Even though there is a lot of renewable energy in Jeonnam, it cannot be brought to the metropolitan area due to transmission network issues. To bring power from Yeonggwang to Gwangju, the transmission network needs to be expanded, but there are various challenges, including community acceptance."
He added, "AI data centers currently cannot be powered solely by renewable energy due to output and frequency stability issues. It is necessary to consider securing stable power sources near demand centers, such as deploying small modular reactors (SMRs) and gas combined heat and power generation at the Gwangju Airport site."
* This article has been translated by AI.
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