As efforts to phase out coal by 2040 progress, experts suggest that instead of shutting down coal power plants all at once, a gradual reduction should align with the availability of alternative energy sources and the stability of the power supply. Germany and Taiwan have managed to maintain power supply stability by keeping some coal generators as backup while closing others.
On September 18, Park Myung-deok, a researcher at the Korea Energy Economics Institute, presented findings on international coal phase-out examples during the 7th public forum for establishing the 12th basic power supply plan at the Korea Electric Power Corporation's Nam Seoul headquarters in Yeongdeungpo, Seoul. He highlighted the decarbonization policies of Germany, Alberta in Canada, the United Kingdom, and Taiwan.
Park noted that a common theme among these international examples is the prioritization of power supply stability. Even as coal plants are closed, these countries ensure that alternative energy sources are secured first or that some generators remain as backup to prepare for potential supply disruptions.
Germany has committed to phasing out coal power by 2038 and has introduced a reverse auction system for hard coal power plants. Power companies bid for compensation to close plants early, with a total of seven auctions conducted, resulting in the allocation of approximately 10.7 GW of the targeted 10.9 GW capacity. If the auction results fall short of the target or after the auctions conclude, older plants are legally required to close.
However, being selected for closure does not mean an immediate shutdown. After a system evaluation, these plants can be utilized as 'grid reserve capacity' to address transmission bottlenecks or regional power supply imbalances, as well as 'capacity reserve' to prepare for potential shortages. These plants do not participate in the electricity market and are used solely for system stability.
Similarly, Taiwan has adopted a comparable approach. Park explained that Taiwan operates an independent grid not connected to neighboring countries and has a significant semiconductor industry, sharing similarities with South Korea. Taiwan is gradually reducing aging coal plants in line with the schedule for introducing new gas combined-cycle power plants.
The Taichung power plant plans to close ten coal units by 2034 while introducing six gas units. Up to six of the coal units may remain as backup, with a reassessment of the need for backup capacity in 2032. The Singda power plant is also linking the introduction of gas combined-cycle power with the closure of coal plants, using some generators as backup only in exceptional situations when supply reserves fall below 8%.
Alberta, Canada, has similarly linked the closure of coal plants with securing alternative energy sources. As of 2015, six of the 18 coal plants, representing about 2.5 GW, were slated for early closure, with these plants being replaced by gas power.
In contrast, the United Kingdom has encouraged the exit of coal power through environmental regulations and market mechanisms. Stricter emissions standards for coal plants and restrictions on new entrants, along with a carbon price floor, have imposed additional costs. Coal power, which accounted for about 40% of total generation in 2012, has gradually decreased, with the last coal plant expected to close in 2024.
Park expressed that it is challenging to apply these international examples directly to South Korea. He emphasized that due to differences in power market structures, generation facilities, and supply conditions, a tailored closure, compensation, and backup system must be designed for the domestic context.
He stated, "While reducing coal use, the foremost consideration should be the physical characteristics of electricity. Ensuring the stability of power supply is paramount." He added, "We have our own market structure and unique power supply characteristics, making it essential to create a customized system through collaborative discussions."
* This article has been translated by AI.
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