Why South Korea Lacks Grid Infrastructure to Transmit Surplus Power

Good day, ladies and gentlemen. Today, I would like to talk about the most critical bottleneck facing South Korea's energy ecosystem: grid congestion.

Currently, Korea suffers from a severe geographical disconnect between power generation and consumption. While nuclear power plants on the East Coast and solar farms in the Honam region generate surplus electricity, the transmission routes to the Greater Seoul Metropolitan Area—where semiconductor clusters and AI data centers are concentrated—are severely blocked. Compounded by local opposition, regulatory delays, and KEPCO’s financial deficit, grid expansion has been delayed for over a decade with no clear end in sight.

Under these circumstances, could Power-to-Gas (P2G)—a method used overseas to convert surplus electricity into hydrogen for storage—serve as a viable alternative?

While many worry about seawater desalination costs, desalination actually accounts for merely 1–2% of total hydrogen production costs, making it a negligible barrier. The real challenge lies in energy conversion efficiency. In the process of converting electricity into hydrogen and back into electricity, over 60% of the energy is lost into thin air.

Conversely, High-Voltage Direct Current (HVDC) transmission—which transports electricity directly—requires massive initial capital investment, roughly 10 billion KRW per kilometer for converter stations and cabling. However, its transmission losses are remarkably low, at just 5–10%.

Given South Korea's geographic constraints, where trans
mission distances remain within 500 kilometers, establishing an HVDC transmission network as soon as possible—despite its high upfront costs—is far more economically sound in the long run than absorbing the immense ongoing losses from hydrogen conversion year after year.

Ultimately, unblocking the nation's industrial lifeline requires bold policy decisions: enacting a special law and driving government-led grid expansion. Thank you.

#Electricity #Shortage #Grid #Cost #RenewableEnergy #Hydrogen #Conversion #Investment #Comparison


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