Korea Electric Power Corporation (KEPCO/Hanjeon)

Since the completion of its 2020 targets, KEPCO/Hanjeon has only set one target to reduce its emissions by 47 million tCO2 compared to BAU by 2030. But as KEPCO/Hanjeon does not report what it projects its 2030 BAU to be, this target is vague and cannot be equated to express the required emissions reductions in reference to a base year, preventing progress from being tracked. As such, KEPCO/Hanjeon should map this target to express its targeted level of reduction in reference to a base year, set target for 2050, and introduce intermediary targets to enable KEPCO/Hanjeon to monitor and maintain progress. Without such, KEPCO/Hanjeon risk further deviating from its 1.5°C pathway.

KEPCO/Hanjeon only decreased its scope 1 and 2 emissions intensity from 471 gCO2/kWh in 2015 to 464 gCO2/kWh in 2020. This emissions trend is not aligned with the company’s 1.5°C pathway, which requires a 6% annual reduction. KEPCO/Hanjeon is projected to strongly exceeds its carbon budget by 59%. The rate at which its future scope 1 and 2 emissions intensity is projected to decrease between 2021 and 2025 should be about 3.5 times higher to align with its 1.5°C pathway. To realign with its 1.5°C pathway, KEPCO/Hanjeon’s reliance on fossil-fuel generation must decrease rapidly and be supported by its transition plan and a coal-phase out date.

KEPCO/Hanjeon only invested 0.4% of its capital expenditure (CapEx) in 2020 in its total mitigation research and development (R&D) and invested 0.2% of its CapEx in mitigation R&D into non-mature technologies. Along with spending 0.01% of its total CapEx in R&D into carbon capture and storage (CCS). KEPCO/Hanjeon does not report its portfolio development CapEx for fossil fuel and low-carbon electricity in the reporting year nor for low-carbon electricity alone. As such, the level of commitment currently held by KEPCO/Hanjeon to develop its low-carbon and renewable capacity is unclear. Furthermore, KEPCO/Hanjeon should provide these figures for the next five years to demonstrate its longer-term commitments.

KEPCO/Hanjeon aims to expand its owned renewable generation capacity to 5.8 GW and to obtain an addtional 35.4 GW of capacity from its power generation subsidies. Linked to CCUS technologies, KEPCO/Hanjeon is conducting R&D projects to investigate performance optimization of dry regenerable CO2 sorbent and CO2 utilization. Furthermore, widening its low-carbon business models KEPCO/Hanjeon is investing in electric vehicle charging (EVC) stations and EVC infrastructure, along with the expansion of its New & Renewable Energy Grid Connection Infrastructure.

KEPCO/Hanjeon plans to expand its owned renewable capacity to 5.8 GW and achieve a total renewables generation capacity of 41.2 GW using generation subsidies. It also plans to reduce its emissions by 47 MtCO2 compared to BAU in 2030, implement the early decommissioning of selected coal-fired power plants, and convert some coal-fired power plants to gas.

KEPCO/Hanjeon’s strategy aims to expand its clean energy capacity and secure future innovative technologies. KEPCO/Hanjeon has prohibited in principle the construction of new coal-fired power plants. It will decommission ten old coal-fired power plants and has a plan to convert four coal-fired power plants to LNG-fired.

KEPCO/Hanjeon has business plans to grow its renewables capacity, researching carbon capture utilisation and storage (CCUS) and expand its EV and smart grid infrastructure. KEPCO/Hanjeon is focusing on reducing its absolute emissions by 47 MtCO2 in relation to 2030 BAU.

Between 2015 and 2020, KEPCO/Hanjeon’s scope 1 and 2 emissions intensity remained near stable. In 2020 renewables accounted for 3% (2.7 GW) of KEPCO/Hanjeon’s total generation capacity, growing from 2% (1.6 GW) in 2015. Over this period its fossil fuel capacity grew by 10 GW of which about 8 GW was from coal.

Despite in principle prohibiting new coal-fired power plants, in September 2021 KEPCO/Hanjeon had plans to develop the Bylong Coal project, projected to mine up to 6.5 million tonnes of coal for 25 years (though these plans were rejected by an Australian State court). Also, KEPCO/Hanjeon has been criticised for not taking a clear position on the Paris Agreement.