Retirement of Black Coal Power... First Day for Blue Wind Energy [Digging Energy]

Specialist Report
Concerns Over Regional Crisis from Coal Power Plant Closure
Korea Western Power Proposes a "Clean Energy Complex"
Confidence in Transforming into a Hub for Offshore Wind and Solar Power
Infrastructure in Place for Cable Landi

The floating solar panel of Lee Wonho is visible against the backdrop of Korea Western Power's Taean Power Headquarters. Korea Western Power

On May 18th, I visited the Taean Power Headquarters of Korea Western Power, located in Wonbuk-myeon, Taean-gun, South Chungcheong Province. This site is home to Units 1 through 10 of the Taean coal-fired power plant, as well as the nation's only integrated gasification combined cycle (IGCC) power plant.

The Taean Power Headquarters drew public attention in December last year when Unit 1 of the coal-fired power plant (with a capacity of 500MW) ceased operations after 30 years. Politicians from both sides of the aisle and high-ranking officials visited the site in succession. This is because the site serves as a litmus test for whether the energy transition policy of the Lee Jaemyung administration will succeed.

Following the closure of Unit 1, a total of eight out of ten units at the Taean coal-fired power plant are scheduled to be shut down by 2037. The government has mandated the construction of liquefied natural gas (LNG) power plants of equivalent capacity to replace the coal-fired facilities. The issue, however, is that these new power plants will be built elsewhere, not in Taean. This has immediately raised concerns about the jobs of hundreds of employees and partner company staff working at the site.

Taean-gun is concerned about the negative impact on the local economy due to reductions in employment, consumption, and local tax revenue. According to the final report of the "Research on the Regional Impact of Power Plant Closure" submitted to Taean-gun at the end of last year, the cumulative economic loss to Taean-gun from 2025 to 2040 is projected to reach approximately 12.7644 trillion won.

Turning the Coal Pier into a Base Port for Offshore Wind

One of the proposed solutions to overcome the regional crisis caused by the closure of coal-fired power plants is to foster alternative industries linked to the energy transition. Korea Western Power, the operator of the Taean Power Headquarters, has presented a vision of transforming the site into a "clean energy complex for regional coexistence." The plan is to repurpose the idle infrastructure resulting from the coal plant closures to turn Taean into a hub for offshore wind and solar power.

Upon entering the turbine buildings for Units 1 and 2 at Taean Power Plant that day, the Unit 1 turbine equipment was silent, unlike the running Unit 2, which was generating noise. Stickers reading "Idle Equipment" were posted throughout the facility, making it clear that this was a closed power unit. From the turbine building's observation deck, the coal unloading pier was visible in the distance. Conveyor belts transporting coal offloaded from ships to each power plant also stood out.

"That area will be used as the landfall point for offshore wind power cables, as well as the operation and maintenance (O&M) center," explained Dongwook So, head of the wind power business division at Korea Western Power, as he pointed to one side of the pier.

Korea Western Power is promoting an offshore wind power project with a total capacity of 1.4GW (gigawatts) in the waters near Gyeokryeolbiyeoldo, about 40 kilometers from the coast of Wonbuk-myeon, where Taean Power Headquarters is located.

To build an offshore wind power plant, electricity produced at sea must be transmitted to land via submarine cables. The facility that connects the submarine cable to the onshore power grid is called a landfall point. While most of the waters off Taean-gun are designated as coastal national parks, the Taean Power Headquarters is not. With no private facilities nearby, the site is ideal for hosting the landfall point.

Facilities for operation and maintenance, known as O&M centers, must also be built onshore to operate the offshore wind power plant. The Taean Power Headquarters has already secured land for the O&M facilities. It is also in discussions with the Ministry of Oceans and Fisheries to utilize the power plant's site as a pier for offshore wind O&M.

So explained, "The Taean Power Headquarters has all the core infrastructure needed for offshore wind power, including the landfall point, O&M pier, and power grid. Utilizing these could save about 1 trillion won in construction costs for offshore wind power."

Korea Western Power is participating in three offshore wind projects off the coast of Taean: Taean Offshore Wind (500MW), West Sea Offshore Wind (495MW), and Gaeui Offshore Wind (400MW).

In March, the Ministry of Climate, Energy, and Environment convened the Renewable Energy Policy Review Committee and conditionally designated the western coastal waters of Taean-gun, including these three projects, as an offshore wind power cluster. The committee determined that additional reviews, such as consultations on military operations, are needed for some areas. The waters off Taean are expected to have excellent power generation efficiency, with average wind speeds exceeding 7 m/s.

Among the three projects, Taean Offshore Wind is the furthest along. With Singapore's Vina Energy and Denmark's Copenhagen Infrastructure Partners (CIP) as major shareholders, Taean Offshore Wind was selected as the project operator in the government's fixed-price contract bid in December 2024. Construction is set to begin in the second half of this year, with the goal of commencing commercial operation by the end of 2029. Discussions are currently underway for permits related to the use of public waters and associated fees.

The other two projects—West Sea Offshore Wind, led by Germany's RWE, and Gaeui Offshore Wind, with Daemyung Energy as the main shareholder—are undergoing environmental impact assessments.

Coal Ash Disposal Sites and Reclaimed Land to Become Solar Power Plants

From the observation deck at Taean Power Headquarters, the adjacent Liwonho floating solar power plant and Hatteulwon solar power plant complex were visible at a glance. The floating solar plant, installed on Lake Liwonho near the Iwon embankment, has a total capacity of 43MW. The 60MW Hatteulwon solar power plant was built on land previously used for salt-damaged agriculture.

Photovoltaic solar power plant overview by Lee Wonho. Korea Western Power

Both power plants were developed as profit-sharing models that distribute revenue with local residents. Notably, the Hatteulwon solar project was designed with a financial structure that allows residents to participate in profit-sharing without the burden of an initial investment.

For the portion allocated to resident participation, 4% (about 3.6 billion won) of the total project cost (about 89.7 billion won) was funded by the shareholder companies, with the interest borne by the special purpose company (SPC) Hatteulwon Solar Power. As a result, the actual resident investment was zero, but the power generation profits will be distributed to local residents over 20 years. Korea Western Power plans to apply this profit-sharing model to future offshore wind projects as well, expanding both resident participation and local revenue sharing.

Panoramic view of Haetdeulwon Solar Power Plant. Korea Western Power.

Additionally, Korea Western Power plans to build a 100MW solar power plant utilizing the site of the plant's second ash disposal facility. Ash disposal facilities are used to landfill and process coal ash left after coal combustion. As coal-fired power is phased out, the need for ash disposal sites will decrease and the land will be repurposed for solar power generation.

There is also a plan to build a 500MW solar power facility on the Iwon reclaimed land. In addition, part of the coal storage yard used to store imported coal is expected to be converted into a solar power plant. The combined installed capacity of the offshore wind and solar power projects being promoted by the Taean Power Headquarters will total as much as 2GW.

Advantages of Securing the Power Grid

One of the main advantages of converting an existing coal-fired power plant into a renewable energy complex is the presence of existing power grid infrastructure (transmission lines and substations). Electricity generated at the Taean Power Headquarters is sent to the Shindangjin and Shinseosan substations via a 345kV (kilovolt) transmission network. This transmission network can also be used for the new offshore wind and solar power plants.

When Units 1 to 4 are decommissioned at the end of 2029, there will be about 2GW of spare grid capacity. After the closure of Unit 6 in 2032, the available capacity will increase to 3GW, and after Unit 8 is shut down in 2037, it will reach 4GW. Newly constructed renewable energy facilities will be able to connect to the grid and transmit electricity immediately upon completion.

Meanwhile, job transitions following the coal phase-out are also being carried out in stages. There were 129 workers at Taean Power Plant Unit 1, all of whom have been reassigned by Korea Western Power to the alternative combined-cycle power plant and renewable energy business sectors. Sixty-four partner company workers were either reassigned within the plant or transferred to other business sites.

A representative from Korea Western Power explained, "There are 176 workers at Taean Power Plant Unit 2, which is scheduled for closure at the end of this year. Korea Western Power will reassign all 93 of its employees according to HR standards established through labor-management negotiations, and is continuing discussions with partner companies to ensure a just transition for the 83 workers employed by partner companies."

This content was produced with the assistance of AI translation services.