Samsung and SK hynix allowed to build Yongin transmission network themselves
power grid 3legislation, allowing power generators and large electricity-consuming companies to build transmission networks themselves. As before, Korea Electric Power Corporation will be responsible for operating them once construction is complete.
The Lee Jae-myung government has expanded eligibility to private-sector entities to carry out power grid projects in a bid to accelerate the construction of an “energy highway.” The National Assembly’s Climate, Energy, Environment and Labor Committee 5on 19 of the Power Grid Special Act and other power grid 3 legislation. With the legislation passed, responsibility for building transmission networks expands from KEPCO to private-sector entities.
If the legislation takes effect, power generators and large electricity-consuming companies, including semiconductor companies, will be able to build the transmission networks they need themselves. For example, Samsung Electronics and SK hynix will be able to build directly the transmission network needed for the Yongin semiconductor cluster. Companies will be able to carry out every stage of a project, including site selection and consultations with residents along the route.
However, as before, Korea Electric Power Corporation will operate transmission networks after they are completed. To allay concerns about privatization, private-sector entities will hand over the facilities to KEPCO after construction, and KEPCO will operate them. Under this arrangement, only the entity responsible for construction changes to the private sector.
Previously, KEPCO had a monopoly on domestic transmission network projects. KEPCO built the transmission network and recovered the investment costs through electricity bills. Before the law was amended, companies had to align with KEPCO’s construction schedule.
Under the bill, KEPCO will continue to draw up long-term plans for transmission and substation facilities. The system will then be changed to allow private entities to carry out procedures including site selection, environmental impact assessments, implementation plans, land acquisition, design and construction. Ultimately, the “BT (Build-Transfer)” model will apply, under which private entities handle construction and transfer the completed facilities to KEPCO.
Sources: 뉴시스 경제
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