General – Korea
Amid recent changes in leadership at the chairperson and most of its members, the Electricity Commission under the Korean Ministry of Climate, Energy, and Environment has shown signs of a shift in its activities.
At its first meeting of the year, the Commission decided on large-scale permit cancellations targeting so-called paper power generation projects.
Given the criticism that the Commission had failed to fulfill its role despite being an independent body, attention is now focused on its recent actions. There are also expectations that the status and independence of the Electricity Commission will be further strengthened.
According to related industry sources, the Electricity Commission revoked permits for 22 power generation projects, including wind power and fuel cell projects, at the ‘319th Electricity Commission Meeting’ held on the 20th of last month.
A notable aspect of this meeting was the large-scale removal of ghost developers who had obtained permits but failed to actually pursue their projects.
The Commission revoked a total of 22 projects: 9 wind power projects (including Cheongdo Geumcheon Wind Power and Yangyang Bongi Wind Power) and 13 fuel cell projects (including Andong Sangavision and Pohang Eco Energy).
Under the Electricity Business Act, the Commission may revoke permits if construction does not begin within a certain period after approval or if laws and regulations are violated. The deadline for construction plan approval is two years for fuel cell projects and four years for onshore wind power projects (five years for offshore wind).
In particular, the revocation of wind power project permits marks the first such action in one and a half years, since the Saemangeum wind power case in July 2024.
These cancellations are interpreted as an effort to correct disruptions to power supply planning and grid connection issues caused by developers who secured permits without proceeding with actual projects.
Furthermore, more project cancellations are expected this year. The Ministry of Climate, Energy, and Environment announced on the Electricity Commission’s website plans to hold hearings regarding permit revocations for 28 power generation projects, including the Bonghwa Wind Power Project.
Among these 28 projects are 15 wind power projects (including Bonghwa and West Suncheon) and 13 fuel cell projects (including Geumeori in Yongin and Sampoh Innovation Valley in Yeongam).
If reasonable reasons for delays are not presented at the hearing scheduled for the 24th, the permit revocation agenda will be submitted to the Electricity Commission.
As the Electricity Commission takes a more active stance, including large-scale permit cancellations, expectations are growing that its authority and independence will be strengthened.
There have long been calls to reinforce the Commission’s status and independence in matters such as granting and revoking power generation permits and determining electricity rates.
