Minister of Climate, Energy and Environment Kim Seong-hwan stated that increasing the height of existing dams is a more feasible solution than constructing new ones, allowing for timely supply of water and power needed for the semiconductor industry. "Building a new dam takes about 10 years, but by reducing the permitting and construction periods, we can complete heightening existing dams within five years. We will ensure a steady supply of water in line with the timing of corporate demand," he said in an interview with Aju Economy.
Kim proposed heightening existing dams as a key solution for securing stable water supply for the Southwest Semiconductor National Advanced Industrial Complex. This plan aims to provide 650,000 tons of industrial water daily, halving the project timeline compared to new dam construction.
The minister also emphasized the importance of expanding power infrastructure in a timely manner to support the semiconductor industry. He outlined plans to build transmission and transformation networks in alignment with corporate investment schedules to ensure a stable power supply.
Below is a Q&A with Minister Kim:
- You plan to supply 650,000 tons of water daily to the Southwest Semiconductor Complex. What is the overall direction of this initiative?
"We plan to supply 650,000 tons daily through heightening the Dongbok Dam and utilizing surplus water from existing dams, as well as converting water releases from power generation dams. To ensure water supply, we will expedite administrative procedures such as feasibility studies and changes to the basic water supply plan, while adhering to legal frameworks. Our goal is to promptly advance related procedures to prevent delays in infrastructure development and to supply water without disruption in line with corporate demand. We will work closely with local governments and relevant ministries to ensure smooth progress of the project."
- Why did you choose to heighten existing dams instead of building new ones?
"Heightening existing dams has advantages over new dam construction, including reduced permitting processes, shorter construction times, and lower costs. While new dam construction takes about 10 years, heightening can be completed within five years if we streamline the permitting and construction periods. Considering the timing of water demand in the semiconductor industry, utilizing existing infrastructure is a more efficient approach."
- There are concerns from the agricultural sector about converting some agricultural water from Naju Lake for the semiconductor complex.
"We plan to convert some agricultural water from Naju Lake for the semiconductor complex while installing alternative supply facilities on the Yeongsan River to ensure there is no disruption in agricultural water supply. This alternative supply will also help alleviate water shortages at the reservoir's lower end and enhance drought response capabilities through modernization of agricultural infrastructure, benefiting farmers. We will actively communicate with farmers and incorporate their feedback moving forward."
- Climate change is causing more frequent droughts. Can we ensure stable supply of industrial, domestic, and agricultural water?
"Following the drought in 2022-2023, we are implementing measures to ensure stable water supply in the Yeongsan and Seomjin River basins, continuously improving water supply capacity in these areas. We have already expanded supply capacity by about 100,000 tons through emergency connection facilities linking the Yeongsan River and Gwangju Yongyeon Water Treatment Plant, and we are also working on a project to increase supply capacity by 115,000 tons through modernization of local water supply systems. In the future, we plan to pursue a strategy that integrates large agricultural dams with the Yeongsan River. We will continuously enhance our response system to ensure stable supply of domestic, industrial, and agricultural water even during droughts."
- The Southwest Semiconductor Complex faces challenges not only in water supply but also in ensuring stable power supply. What are your plans for stable power supply?
"As the semiconductor industry is a national strategic sector, establishing a stable power supply base in a timely manner is crucial. We will first address the additional power demand expected by 2030 through current generation capacity and the commissioning of two new nuclear power plants (2.8 GW), along with early deployment of renewable energy. We will then detail long-term power supply plans in the 12th Basic Plan for Power Supply and Demand to accommodate increasing demand. To address the variability of renewable energy, we will expand flexible resources such as energy storage systems (ESS) and pumped storage. We also plan to build transmission and transformation facilities in a timely manner to match corporate power needs. Currently, we are considering early construction of two substations and a 345 kV supply line, and we will proactively expand power infrastructure in anticipation of future demand."
- Concerns have been raised that regional electricity rates may benefit areas with abundant power supply but burden regions like the capital area. How are you designing the regional electricity rate system?
"I believe that regional electricity rates are a key tool in the 'local production, local consumption' policy, which comprehensively reflects the structure of the power system, self-sufficiency rates, and national balanced development factors. From the perspective of national balanced growth, we aim to reduce industrial electricity rates in non-capital areas with abundant power supply to encourage the dispersion of power demand. Since this system will also impact the location of advanced industries and national balanced development, we will gather sufficient opinions from the industry and regions to establish a plan by the end of the year."
- There is increasing demand from companies for compliance with RE100 (100% renewable energy usage). How do you plan to expand renewable energy deployment?
"To respond to companies' RE100 compliance demands, we will rapidly expand renewable energy deployment, focusing on solar power. The government, local governments, and public entities will work together to achieve the early deployment of 100 GW of renewable energy. In particular, we will identify large-scale projects in areas with grid capacity, such as the capital region, to create ultra-large renewable energy flagship complexes and actively explore new sites for agrivoltaics and floating solar. We also plan to maximize the use of idle spaces such as factory rooftops, roads, railways, schools, and parking lots. For wind energy, we will support timely completion through close management of the entire process, including expedited permitting, and will also expand the infrastructure for deployment, including ports and vessels, to accelerate the pace of renewable energy expansion."
- Are you also pursuing institutional improvements to reduce the burden of RE100 on companies?
"We plan to implement various institutional improvements to lower renewable energy costs, enabling companies to maintain competitiveness while complying with RE100. We will unify the renewable energy certificate (REC) system and spot market into a long-term fixed-price contract through competitive bidding to lower generation costs and mitigate business risks. Additionally, we will create an environment that allows companies to utilize renewable energy more stably by addressing location uncertainties through planned site introduction, reducing rental fees for renewable energy projects on public land, and providing policy financing support for medium and large projects."
* This article has been translated by AI.
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