IRENA Chief: "Renewables Are More Competitive than Nuclear for AI and Semiconductor Power Demand"

Francesco La Camera, IRENA Director-General, Holds Press Briefing
"Nuclear Power Plants Take 7 to 9 Years to Build... Renewables Can Be Scaled Up Quickly"
"Korea Has the Technology and Know-How to Achieve 35% Renewables"

Francesco La Camera, Director-General of the International Renewable Energy Agency (IRENA), is responding to reporters' questions during a press briefing held on the 16th in conjunction with the '2026 World Climate Expo (WCE).' Ministry of Climate, Energy and Environment.

Francesco La Camera, Director-General of the International Renewable Energy Agency (IRENA), emphasized the competitiveness of renewable energy as a power source to meet the rapidly increasing electricity demand from large-scale consumers such as artificial intelligence (AI) data centers and semiconductor plants. He stated that while nuclear power plants and small modular reactors (SMRs) require significant time before they can supply power, renewables can be scaled up relatively quickly and are also cost-competitive.

During a press briefing held in Busan on the 16th, La Camera responded to suggestions that nuclear or SMR technologies might be more suited to meeting the large-scale electricity needs of AI data centers and semiconductor fabrication plants by asking, "Would you choose energy that can be supplied right now at a lower price, or energy that can only be supplied tomorrow at a higher price?"

He said, "Currently, the least expensive power source available is renewable energy," adding, "It does not take much time to expand renewable power, but building a nuclear plant takes seven to nine years." He also noted, "Even with SMRs, it still takes a long time," remarking, "From that perspective, I believe the answer is clear."

However, he clarified that the expansion of renewables does not mean existing nuclear power plants should be closed prematurely. He explained, "It is by no means an argument to decommission existing reactors," but predicted that the share of renewables—capable of rapid expansion—will continue to increase as electricity demand rises in the future.

"Korea Has the Technology and Know-How to Achieve 35% Renewables"

La Camera also expressed a positive assessment of Korea’s potential to expand its share of renewable energy. Noting that Korea’s renewable energy portion currently stands at about 9–10%, he projected that, with clear plans and consistent government policy, Korea will be able to significantly increase this share.

He was particularly optimistic about the government’s target of raising the renewable share to 35% by 2035, saying, "Korea certainly has the technology and know-how to achieve this target." He cited as strengths Korea’s strong industrial and technological foundation in fields essential for energy transition, including perovskite, a next-generation solar cell, as well as semiconductors and cables.

Regarding Korea’s geographical limitation as a small country with an independent power system not interconnected with neighboring countries, La Camera said that these challenges can be overcome technologically. "Even if the share of renewables such as solar and wind, whose output can fluctuate, increases, the challenge can be addressed by expanding flexible resources such as energy storage systems (ESS), pumped hydro, and the power grid," he said.

When asked whether Korea can achieve an energy transition centered on renewables and attain carbon neutrality without connecting its grid to neighboring countries, he said, "We must distinguish between opinion and fact," and added, "Based on available evidence and the government's resolve, it is quite possible to reach that conclusion."

On whether grid interconnection with neighboring countries could accelerate the pace of the transition, La Camera instead highlighted the economic benefits. "If the power grids are connected, Korea could export competitive electricity to other countries, as well as import it, thereby enhancing profitability," he asserted.

"Permitting and Grids Are the Bottlenecks for Renewables"

La Camera indicated that the most significant real-world bottlenecks hindering Korea’s expansion of renewable energy are permitting procedures and the power grid. Responding to concerns that, although the government is pushing to expand solar and offshore wind, many large projects remain stuck at the planning stage, he explained, "One of the barriers is the lengthy permitting process required during the investment stage."

However, he clarified that this is not a problem unique to Korea. "I do not know if the permitting process is especially slow in Korea," he said, "but it also takes a long time in Italy, and this is a difficulty faced by every country." He added that many countries are seeking to shorten permitting timelines, and that the Korean government has shown a willingness to make improvements as well.

The other main bottleneck is the power grid itself. Even if renewable power facilities are built rapidly, without transmission networks to deliver the generated electricity to consumers, there are limits to expanding real electricity supply. "A common difficulty faced by many countries is that their grids are not ready," he stressed, emphasizing the need to upgrade not only generation facilities but also transmission and other infrastructure during the energy transition process.

La Camera strongly opposed the view that a wider deployment of renewables would inevitably lead to higher electricity prices and undermine the competitiveness of manufacturing. "There is a conceptual error in the logic that investing in infrastructure drives up supply prices," he said, adding, "If that were the case, no one would invest in infrastructure." He further stated, "Increasing investments in renewables not only boosts profitability but can also reduce electricity rates."

He explained the 35% renewables target for 2035 not as simply a numerical goal, but as a "critical point" on the path to carbon neutrality by 2050. He predicted that once the share of renewables reaches 35% during the shift toward electrification and reduced dependence on fossil fuels, renewables would trigger a virtuous cycle of further electrification and accelerated energy transition.

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