2008 Korea-Uzbekistan Energy Cooperation Electric Power Industry in Korea
Contents Background Information Some History of Korea s Electric Power Industry Korea s Electric Power System Transmission Distribution Thermal Power Plants Nuclear Power Plants Power Development Plan Conclusion 2
Background Information
Rapid Economic Development in 1960s - 1970s First & Second 5 Year Economic Development Plan(1962-1971) GDP per capita was $87 (1962) Government adopted export-oriented economic growth strategy, starting from labor intensive small scale industries such as wig, shoes and textile etc. Turning point from agricultural society to modern industrialized urban society Export surpassed $1 billion (1971) Third 5 Year Economic Development Plan (1972-1976) 4
Economic Development of Korea [Per capita GDP($)] 15,000 16,460 10,000 10,307 5,000 Five year economic Development plan 67 87 6,742 Financial Crisis 1945 1953 1962 1970 1980 1990 1997 2000 2005 * Source: Korea Development Institute 5
Overview of Korean Economic Growth 1948 1950-53 1953-60 1960s-1980s Foundation of Republic of Korea Korean War 1 million casualties More than 3 billion dollars of economic losses Postwar Reconstruction Foreign aids from 1953 to 1961 totaled $2.3 billion Most of aids from abroad were consumer goods (rice, wheat, fertilizer) and didn t contribute to the accumulation of capital resources Rapid Growth 1990s Globalization 2000 IT-Driven Advanced Economy 6
Korea s Economic status (as of 2007) GDP ranking: 13 th by volume ($969 billion) Per capita: $20,045 Main industries: electronics, automobile, semiconductor, mobile phone, shipbuilding, steel, chemicals Machinery, Information technology Trade Volume: $728.6 billion Exports: $371.8 billion Imports: $356.8 billion 7
Primary Energy Demand in Korea (Mtoe) 1971 2000 2010 2030 Coal 8 (47.06%) 42 (21.65%) 58 (21.97%) 79 (20.90%) Oil 11 (64.71%) 104 (53.61%) 126 (47.73%) 165 (43.65%) Gas - 17 (8.76%) 33 (12.50%) 61 (16.14%) Nuclear - 28 (14.43) 45 (17.05%) 65 (17.20%) Hydro 0 0 0 1 (0.26%) Other renewables - 2 (1.03%) 3 (1.14%) 7 (1.85%) Total Primary energy demand 17 194 264 378 * Reference : IEA, 2002, World Energy Outlook 2002 : Korea Energy Outlook 8
Goal and Direction of Korea s Energy Policy Finalization & Energy Security Public Disclosure Stabilizing Finalization the & base for Public energy Disclosure supply Strengthening Finalization & international Energy Public Disclosure cooperation Sustainable Development Market Finalization efficiency & through competition Public Disclosure Environment-friendly Finalization & energy Public Disclosure system Restructuring the energy industry Promoting rational price mechanism Promoting energy conservation and efficiency Developing new and renewable energy technologies 9
History Electric Power Industry
Pre-KEPCO : 1887-1960 1887 The first electric bulb lit the loyal palace, 7 years after Edison s light bulb invention 1898 The first electric power company was established in Korea 1948 North Korea cut off transmission line without prior notice 90% of generation capacity was located in the north South Korea s installed capacity was 198MW 1950-1953 Korean War - Most of generation, transmission, distribution facilities were destroyed 1953-1960 Political turmoil, Extreme poverty, Power shortage (Standard line vs. Special line) 11
Foundation & Development: 1961-1981 1961 1964 Three regional electric companies were merged into a single national electric power company (KECO) with 367MW capacity Unlimited power supply began first 5-year economic development plan (1962-1966) 1968 Generation facilities capacity reached 1,000 MW 1978 The first nuclear power plant was commercialized (587 MW) Generation Mix diversification ( Oil Coal, Nuclear) 1981 T&D loss: 29.4% (1961) 6.7% (1981) Rural electrification was completed: 12% (1960) 99.3% (1981) 12
Globalization : 1980s-2000s 1982 1988 KEPCO was reborn, as a wholly government owned corporation Summer Olympic Games were held in Seoul The first Olympic event with No power supply failure 1994 Listed on the New York Stock Exchange USD 300 million worth of ADRs were issued 1995-1996 The first and second overseas projects were kicked off in the Philippines 2002 Successful commercialization of 765kV system First of its kind in Asian region 2007 International cooperation 13
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Transmission & Distribution Loss Historical Improvement International Comparison 29.35 (Unit : %) (Unit: %) 8.9 6.08 3.9 6.7 6.7 5.1 4.8 3.9 1961 1990 2007 UK USA France Japan Taiwan Korea ( 05) ( 05) ( 05) ( 05) ( 05) ( 07) 15
Rural Electrification Korea s rural electrification was completed in 1981 (17 year project) A special law to facilitate the rural electrification by simplifying the formalities and procedure of land acquisition, right of way securing, compensation and arbitration has been enacted and proved itself to be a great success 1964 1981 25.5% 99.2% 16
KEPCO S Generation Capacity Growth Dec. 2007 73060 (Unit: MW) 186 186 fold Increase Increase 367 1961 2007 17
Generation Capacity & Energy As of 2007 18
Structure of Electric Power Industry KEPCO 6 generation companies KOMIPO KOSPO WP Generation KOSEP KPX EWP KHNP IPPs Transmission Distribution Sales Year 2001 Transmission (KEPCO) Distribution (KEPCO) Sales (KEPCO) Customer Customer 19
Lessons from KEPCO s Rapid Growth Phased Approach in Technology Development Time 1 st Phase (1960s) 2 nd Phase (1970s) 3 rd Phase (1980s) 4 th Phase (1990s) 5 th Phase (2000- ) Level of Technology Import, License Imitate, Mimic Partially Independent Competition Brand New Technology Descriptions 100% foreign technology Slight adjustment, tiny addition to original technology Substantial modification, some new technologies Give-and-Take partnership with advanced countries Mutually beneficial cooperation and information exchange Technology transfer, implementation of international training program (Acceptance of trainee worldwide) Emphasis on Training & Development KEPCO still send a large number of employees to technologically advanced nations for training and development (e.g., USA, Europe, Japan). KEPCO signed more than 20 different MOUs for training delegation exchange program with countries in Asia, Africa, Europe and America. 20
Thermal Power Plants
Coal-Fired Power Plant 500 MW Class 800 MW Class - Capacity: 814-886 MW - Capacity: 500-519 MW - Efficiency: 43.5-43.64 % - Efficiency: 39.49-43.45% - 34 Units (17,000 MW) operating - 2 Units (1,600 MW) operating - 4 Units (2,000 MW) under construction 1,000 MW Class Plant design was completed in 2007. - Design Capacity: 1000MW - Expected Plant Efficiency: 45% Dangjin Thermal Power Plant (500MW 6) Yonghung Thermal Power Plant (800MW 2) 22
Thermal Power Plant Efficiency Improvement % 40 39.94 40.66 40.70 40.97 41.19 35 35.63 30 Efficiency (%) 80 03 04 05 06 07 ***gross efficiency 23
Thermal Power Plant Capacity Factor Chronological Improvement International Comparison (Unit: %) (Unit: %) 76.2 76.2 74.0 66.2 59.3 62.4 64.1 66.6 1961 2000 2005 USA Japan France UK Korea 05 05 05 05 05 24
Nuclear Power Plants
Why Nuclear? Low CO 2 Emission Cost Effective 780 990 18 20 540 13 ` ` 10 4 Nuclear Gas Oil Coal (g/kwh) Nuclear Hydro LNG (US cent/kwh) Oil 26
Nuclear Power Plant In Operation Under Construction Planned 20 units (17,716 MW) 8 units (9,600 MW) 10 units(2030) (14,000 MW) Radioactive Waste Disposal Facility (To be constructed) Ulchin 1, 2, 3, 4, 5 & 6 Shin-Ulchin 1&2 (Planned) Seoul Wolsong 1, 2, 3 & 4 Shin-Wolsong 1 & 2 (Under Construction) Yonggwang 1, 2, 3, 4, 5 & 6 Yonggwang Ulchin Gyeongju Wolsong Kori Kori 1, 2, 3 & 4 Shin-Kori 1, 2, 3&4 (Under Construction) 27
Nuclear Power in the World (units) 100 104 units Source: KAIF, Jan, 2008 80 60 59 units 55 units ` 40 27 units 20 20 units 19 units 18 units 17 units 15 units 11 units 10 units World Rank USA France Japan Russia UK Canada Germany Ukraine China Sweden 1 2 3 4 5 6 7 8 9 10 11 28
Korea s Position in Nuclear Power No.5 : World 5 th Largest Nuclear Power 91% : Higher Capacity Factor 47 months : Shortest Construction Time 2,000$/kW : Low Construction Cost 29
78% 91% Nuclear Power Plant Capacity Factor Year 2007 World Average Korea Source: Nucleonics Week Magazine in U.S. 30
Structure of Nuclear Power Industry KOPEC KOREA POWER ENGINEERING Co. AE + NSSS DESIGN KPS KOREA POWER SERVICE Co. PLANT MAINTENANCE KNFC KOREA NUCLEAR FUEL Co. NUCLEAR FUEL SUPPLY KHNP KOREA HYDRO NUCLEAR POWER Co. PROJECT MANAGEMENT & OPERATION DOOSAN DOOSAN HEAVY INDUSTRIES Co. EQUIPMENT APPLY Domestic Companies CONSTRUCTION R & D KAERI KOREA ATOMIC ENERGY RESEARCH INST. KEPCO Group Public Organization. Private Companies 31
Generation System Expansion Program
Electric Power Sector President Prime Minister Ministry of Strategy and Budget Ministry of Knowledge Economy Ministry of Education, Science and Technology Budget, Accounting Policy Making, Supervision Nuclear Safety, R&D, Licensing KEPCO KHNP, 5 Gencos, IPPs 33
Generation Expansion Program Capacity (MW) Installed capacity Addition of capacity Reserve 신규설비 Forecast Load 기존설비 Year 34
Generation Expansion Plan: Establishment Procedure Establish directions for Master Plan Submit materials covering each field (Including the letter of intent for construction submitted by the electricity business operators) Review and prepare working drafts Collect opinions related to Master Plan (tentative plan) Examine Master Plan (draft) Finalize and announce the Master Plan Government Electricity business operator/korea Power Exchange Practical work by the 6 working subcommittees Public Hearing Electricity Policy Examination Council Government 35
Analysis of the WASP output Analysis of Environmental Impacts Check Fuel Requirement Capital Cost Cash Flow WASP Best Generation Expansion Plan Found by WASP O&M Cost Cash Flow Financial Analysis Check Manpower Development Analysis of Location of Power Plants WASP Feasible Solution Analysis of Transmission System Development Check System Frequency Stability Transmission System Capital Cost Cash Flow 36
Conclusion Based upon discussions so far we can come to conclude that Korea has successfully overcome a variety of challenges in developing its technologies and skills over the past 4 decades and has made itself one of the world-leading power companies. Korea wishes to share knowledge & experience with developing countries in Asia, Africa and Central & South America to help ease their sufferings and hardships coming from the shortage of electric power. 37
Thank You