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Newsletter N°81 - October 2025
âš¡Energy: South Korea plans two new large nuclear reactors, more renewables in energy mix
South Korea has unveiled an ambitious new energy strategy that aims to significantly reshape its national electricity mix by 2038. The recently finalized plan calls for the construction of two large-scale nuclear reactors and a small modular reactor (SMR), the largest increase in nuclear capacity since 2015. Simultaneously, the government intends to dramatically scale up renewable energy, particularly solar, reflecting Korea’s dual priorities of decarbonization and energy security.
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Key Elements of the New Energy Plan
South Korea’s 11th Basic Plan for Long-Term Electricity Supply and Demand—covering the period from 2024 to 2038—targets a multi-pronged energy expansion. Nuclear power’s share is expected to grow from approximately 30.7% to 35.2% of the national mix. This comes alongside a planned rise in renewable energy, which should expand from 9.6% to around 29.2%. Fossil fuels will see a significant decline: coal is projected to drop from over 31% to just 10.1%, and gas will fall to 10.6% by 2038. The overall contribution of carbon-neutral sources (nuclear and renewables combined) is anticipated to surpass 70% by 2038.
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Nuclear Power: Expansion and Technology
The plan includes two new large-scale reactors and one SMR, with sites for the new plants to be selected starting March 2025. These plants are planned to begin operations in the mid-2030s, though final commissioning could extend to 2039. Korea Hydro & Nuclear Power (KHNP) continues work on four additional reactors already under construction as part of its broader nuclear expansion.
While the previous administration under Moon Jae-in pursued a phase-out of nuclear energy after the Fukushima accident, recent policy reversals now position nuclear as a cornerstone of Korea’s path to a carbon-neutral grid. The plan supports further R&D for domestic SMR technology, with approval and commercialization targeted for 2035.
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Renewables and Grid Modernization
To offset the originally planned but canceled third reactor, the plan boosts the solar energy build-out by 2.4 GW, targeting a total of 77.2 GW from solar by 2038. This expansion will demand major upgrades to energy storage and grid infrastructure, as Korea’s transmission network remains a weak link in the transition toward high levels of intermittent renewable energy. Energy storage system (ESS) capacity is set to jump to 138 GWh, with renewables’ share in the power mix expected to reach nearly 33% by 2038.
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Economic and Industrial Impact
The energy sector’s transformation will be critical as electricity demand grows rapidly, fueled by the expansion of Korea’s semiconductor and artificial intelligence industries. The plan is broadly supported by the nation’s energy industry, but experts have raised concerns about the feasibility of adding 50 GW of solar capacity within 14 years and the associated costs. Modernizing and expanding the transmission and distribution grid is viewed as a key challenge that must be addressed to ensure system reliability.
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Policy and Political Dynamics
Finalization of the plan followed months of political debate, with strong opposition to new nuclear builds. A compromise reduced the number of new large reactors and increased solar targets. With leadership changes and shifting party strategies, ongoing debates may still affect the implementation of aspects of the plan.
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South Korea’s new energy roadmap marks a strategic pivot to carbon-neutral electricity, balancing nuclear expansion and aggressive renewables targets. Its success will depend on technology deployment, grid modernization, and political continuity, all in the context of strong industrial growth and a national commitment to sustainability