The government is stepping on the gas to fully normalize the nuclear power ecosystem this year, reversing the previous government’s policy of waning the nation off nuclear power.
The Ministry of Trade, Industry and Energy (MOTIE) said on March 29 that in accordance with the contract for the main equipment at Shin Hanul Nuclear Power Units 3 & 4, production of core equipment, materials and parts for the nuclear power units will be initiated and work worth a combined 2.9 trillion won will be secured over the next decade.
Last year, MOTIE and related institutions offered emergency financial funds worth 400 billion won to nuclear power SMEs, who had been struggling with management hardships caused by the previous government’s nuclear power phase-out policy, and they decided to provide an additional 200 billion won of soft loans, a special financial program on March 31.
A ceremony to strike the contract on the main equipment for Shin Hanul Nuclear Power Units 3 & 4 took place at the Four Seasons Hotel in Jongno-gu, Seoul, on March 29 with MOTIE Minister Lee Chang-yang, President Hwang Ju-ho of Korea Hydro & Nuclear Power (KHNP) and President Jung Yeon-in of Doosan Enerbility in attendance.
The main equipment for nuclear power units are reactors, steam and turbine generators for generating power. KHNP inked the contract on the main equipment of the units with Doosan Enerbility.
In the past, it took 30 to 37 months to finish the process, ranging from an initial review to a final deal.
This time, the process was shortened to eight months. The step is designed to reinvigorate the nuclear power ecosystem, which has been staggering with lack of work, MOTIE said.
Under the deal, the nuclear power industry is predicted to secure work worth 2.9 trillion won for the next 10 years.
KHNP plans to front-load 1.4 trillion won, more than half of the total value of the contract for an initial, three-year period of the project to reinvigorate the sagging nuclear power industry.
Doosan Enerbility, the main contractor, had pre-ordered work worth 45 billion won to its cooperative companies for shared growth by the end of February. Under the deal, Doosan Enerbility plans to place orders worth an additional 210 billion won this year.
A whole view of the Shin Hanul Nuclear Power Plant in Uljin, Gyeongsangbuk-do. (Photo: KHNP)
The construction of Shin Hanul units 3 and 4 is progressing with a sense of speed with the goal of completing an environmental impact assessment within the first half of this year, approval of the power source development project implementation plan in July at the earliest, and commencement of subsequent site preparation work.
In addition to the emergency financing policy, implemented by the government last year, MOTIE, KDB, KHNP and Doosan Enerbility will jointly strike an MOU to offer 200 billon in an additional special financing program to help the financially troubled SMEs and mid-size enterprises overcome financial difficulties.
MOTIE Minister Lee said, “The steps are expected to help the nuclear power companies, which has been so far struggling with hardships, make a leap forward, and the government will strive to fully normalize the nuclear power ecosystem fast this year.”
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