[Korea`s nuclear technology (1)] Nuclear power: Korea`s new growth engine

This is the first in a series of articles that highlight the challenges and opportunities facing Korea`s nuclear power industry. - Ed.



By Park Goon-cherl



As the United Arab Emirates awarded its first nuclear energy contract to a consortium led by Korea Electric Power Corporation, Mohamed al-Hammadi, chief executive officer of the Emirates Nuclear Energy Corporation said: "We were impressed by the KEPCO team`s world-class safety performance and its demonstrated ability to meet the UAE program goals."

He added that the KEPCO team received a higher evaluation for safety performance than the other competitors.

The UAE official`s comment implies that the major reasons why Korea pipped other nuclear industry leaders for this contract were the world-class safety performance and excellent operational track record of Korea`s nuclear power plants, which were designed and operated by Korea`s homegrown technology.

As someone who has been involved in research on nuclear power, I was overwhelmed with pleasure when I heard this. KEPCO`s success here is indeed a remarkable achievement of Korea`s 50-year history of nuclear study and 30-year history of nuclear power plant operation.



In 1959, when Korea`s GNP per capita marked below $60, Syngman Rhee, then president of Korea, established the Korea Atomic Energy Research Institute and imported a research reactor, Triga Mark II, from the United States by providing government funding to the tune of $420,000, a huge sum of money at that time. Now, 50 years on, in December 2009, Korea eventually won a $40 billion nuclear power plant contract. This good news from the UAE, heralding Korea`s evolution from a state of extreme poverty to an exporter of nuclear power plants within a half century, is a cause for national celebration.

I am fully convinced that the first export of a nuclear plant, considering its economic value, is enough to dub the nuclear power industry the 4th economic growth engine for Korea, after shipbuilding, semiconductors and automobiles. Having won this contract, Korea has now ushered in an era of "nuclear renaissance."



Why nuclear power again?

Since the establishment of Kori Nuclear Power Plant Unit 1 in 1978, Korea has continued to carry out nuclear power plant projects. Currently, a total of 20 units are in operation. The installed capacity of nuclear power plants is 17.72 million kW, which ranks Korea 5th globally. In terms of operation, Korea has run its plants at 90 percent capacity for nine years in a row.

Nuclear power generation has greatly contributed to the stable supply of energy in Korea.

In particular, Korea has managed to improve its operational capability to world-class levels over the past 30 years. Indeed, Korea`s capacity factor - the actual power output as a percentage of maximum posible power output - was 93.4 percent in 2008 and 91.7 percent in 2009. This far exceeds the world average and is even higher than countries with advanced nuclear power technologies, such as France and Japan. In addition, Korea ranked first in capacity factor, among the 16 countries possessing more than six reactors, in 2008.

Due to the instability of the global energy market, nuclear power generation is in the limelight these days. Its production cost is very low, and it is not affected to a great extent by fluctuations in fuel (uranium) prices.

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Korea`s power generation industry has greatly contributed to the nation`s industrial development and stabilization of the economy thanks to nuclear power plants that have played the role of "baseload plants."

Baseload plants refer to power stations that meet some or all of a given region`s continuous energy demand. They produce energy at a constant rate, usually at a cost lower than that of other power generation facilities. Baseload plants typically operate throughout the year except in the case of repairs or maintenance.



Preparing for 50 years later

Korea has grown into a world leader in nuclear power technologies. This is attributed to a combination of factors - aggressive government investment, the strategic efforts of industries to develop technologies, and the devotion of nuclear professionals. All stakeholders in the government, industry, and academia have closely cooperated to localize nuclear technologies and build an energy industry upon them.

Korea`s nuclear power industry also has paid attention to exporting its independently developed technologies. Since 1993, KEPCO took the lead in exploring overseas markets. Through overseas market exploration and collaboration with various overseas organizations, such as Westinghouse of the United States and Atomic Energy of Canada Ltd., Korea has exported nuclear plant technologies and components amounting to more than $500 million.

Korea Hydro and Nuclear Power Co. Ltd. and Korea Power Engineering Company Inc. sought to advance into overseas markets based on their technologies accumulated through the operation of domestic power plants. They dispatched technology professionals to the United States, China and Vietnam. In addition, exports of maintenance technology, nuclear fuel and components gathered momentum. It was based on these efforts that Korea finally succeeded in securing the UAE contract.



Tasks ahead

Korea has thus far been successful in its development of nuclear power technology. Now it is time for Korea to aim for a higher level. There are many tasks Korea needs to overcome to make nuclear power generation a new growth engine and create a highly competitive export industry.

The Institutional Atomic Energy Agency forecasts an enormous growth of the nuclear power market - around 430 new units will be constructed around the world by 2030. In monetary terms, their value will amount to $1 trillion. This also means that the era of nuclear renaissance is, indeed, just around the corner. In preparation for the expected nuclear boom, global leaders in nuclear power technologies are forging ahead with the development of new plant models with enhanced price competitiveness, safety features and environmental-friendliness.

Encouraged by the UAE contract, Korea intends to expand its share of the global nuclear power market. The key challenge to achieving its ambition will be to secure competitiveness in technology. More than anything else, Korea needs to develop original technologies and localize source technologies. It is also essential to foster professionals who are high caliber and to enhance research capacity.

At the same time, it is very important to greatly enhance the safety of nuclear power plants. Otherwise, it will be difficult to earn trust from the public and build a social consensus on the need to promote nuclear power generation.

There are other imminent challenges facing Korea. The nation`s storage capacity for spent nuclear fuel is expected to reach a saturation point in 2016. Thus, it will be necessary to start a public discussion on this issue long before this date and seek solutions to the storage problem.

In addition, the to-do list includes ensuring a safe operation of the low-level radio-waste disposal site now under construction; the development of a sodium-cooled fast breeder reactor; securing public trust on the safety of nuclear power; and the establishment of a global cooperation system for peaceful recycling of spent fuel.

If Korea successfully address these challenges, it will be able to transform the nuclear power industry into a powerful engine for sustained economic growth.