Experts who witnessed the unprecedented scenario of a Strait of Hormuz closure unanimously advised that national energy security must be factored into the country's energy mix going forward. They called for expanding nuclear power and renewable energy facilities — which are insulated from geopolitical crises — as well as reassessing the value of coal-fired power plants, which can most readily substitute for liquefied natural gas (LNG) generation capacity. The government currently plans to phase out all coal power plants from the grid by 2040.
"The current U.S.-Iran war has exposed vulnerabilities in our energy mix," Lee Byung-jun, a professor of electrical and electronic engineering at Korea University, said Thursday. "We need to re-examine the ratio of energy sources from a security perspective." His remarks underscored the need to prepare countermeasures given that LNG — which accounts for roughly 30% of power generation and serves as a flexible power source — sees price volatility spike with each geopolitical crisis.
Calls are growing for more active use of nuclear power. Uranium, the fuel for nuclear generation, is typically stockpiled at least one year in advance, and supply sources are geographically diversified, making supply disruptions unlikely. Next-generation large reactors (APR-1400) and small modular reactors (SMRs) are expected to significantly reduce the drawback of nuclear power being limited to baseload use, as they allow easier output adjustment. After the Iran war triggered a surge in LNG prices, the government announced it would adjust nuclear plant maintenance schedules to raise nuclear utilization rates.
Coal power plants are also drawing renewed attention. Coal generation had been steadily phased out of the grid. A consensus had formed to curtail coal use due to its low energy density and fine dust emissions from aging facilities. According to the Korea Power Exchange, coal's share of total power generation reached 39% in 2017 but shrank to 28.7% last year.
Yet coal, long dismissed as obsolete, rescued the power grid this time. Coal plants can adjust output nearly as flexibly as LNG plants, and coal is mined across the globe, making it free from geopolitical risks. European countries are also known to rely on coal generation to weather crises whenever LNG prices surge. "We need to adopt a 'cold reserve' approach that keeps coal plants minimally operational while preserving the facilities after 2040," an industry official said. "This would allow them to serve as emergency power sources when prolonged periods without sunlight or wind create crisis conditions."
