Korea Electric Power: Tips for Nuclear Rises

A South Korean "central enterprise" has emerged in the past decade as a way to make its Chinese counterparts ashamed of success. What is its secret?

Although only one North Korean strait was separated from Japan, the Fukushima nuclear accident did not deter the neighbor from the nuclear power. In addition to reiterating that the original plan for the development of nuclear power in South Korea remained unchanged in mid-2011, at the end of 2011, the Minister of Knowledge Economy of the Republic of Korea, Hung Hye-soo, renewed publicly: “South Korea’s nuclear energy policy has not changed. We will not change our mind and will continue to build nuclear power plants. ”

According to the latest data provided by the World Nuclear Energy Association, South Korea currently has 21 nuclear power units in service, providing 31% of electricity for South Korea. According to the Korean government's nuclear power plan, by 2030, the number of units will increase to 40, providing 59% of the electricity for South Korea.

This is obviously different from the multinational nuclear rejection and nuclear abandonment policies. Due to the nuclear abandonment policy, major German power companies such as Eon, RWE, ENBW, and Vattenfall will all be forced to shut down their nuclear power plants and suffer huge economic losses. Compared to the heads of the four major power companies, Kim Chong-mi, president and CEO of Korea Electric Power Company (Kepco), faced the same problems.

The Korea Electric Power Corporation, which is headquartered in Seoul’s high-level section of Korea, Samsung Cave in Gangnam, is the only electric power company in Korea. Under the policy of building nuclear power in South Korea, its protagonist position as an industrial motive force remains unshakable. How to achieve this huge goal of nuclear power and convince the public to ensure the safety of the environment during the period when the nuclear power crisis has not been cleared up is a problem that the leadership of the Korean power company headed by Kim Chong-mi will face.

But this seems hard to beat them. From the history of the development of nuclear power by the Korea Electric Power Corporation, this start-up peninsula company is following the pace of many large consortium companies in South Korea that has shaken the world and embarked on a world-wide competition.

Hanergy’s nuclear path Kune Y. SUH, a professor at the Department of Nuclear Energy Engineering at Seoul National University, once told the Energy reporter: “Nuclear power is not the best option in Korea, but the only way to go is to choose.”

The development of nuclear power in South Korea has enormous benefits for the development of South Korea's economy, especially industry. South Korea is a small country of resources. For a long time, the dependence of energy on foreign countries is large, but the price of electricity in South Korea has remained stable. This is largely due to the low price development of nuclear power. According to Wang Dongrong, a senior economist at CLP International, South Korea’s nuclear power has long been at a price of more than 30 Won/kWh, while the price of coal is more than 50 Won/kWh, and that of hydropower is more than 160 Won/kWh.

Therefore, after recognizing the role of nuclear power, the Korean government formulated the “Atomic Energy Law” as early as 1958 to promote the development of nuclear power. In the early 1970s, starting with the purchase of three commercial units, Westinghouse and Canada Atomic Energy, South Korea began to open the door to a truly nuclear power plant. “At this time, South Korea developed from the initial exploration phase of the 1950s and 1960s to the introduction of absorption phase,” Zhao Chengkun, chairman of the China Nuclear Energy Association, told reporters. At this stage, the Korean power company began to show the power of convergence.

Korea Electric Power Corporation (Kepco) was formerly known as Korea Electric Company, Ltd., which was founded in 1961 by three power companies: Korea, Seoul, and South Korea. Years of merger. In 1982, Korea Electric Power Co., Ltd. was transformed into a state-owned company and became a state-owned group company, officially renamed Korea Electric Power Company (Kepco). Since then, Korea Electric Power Co., Ltd. has become Korea's only electric utility company.

With the economic development, Korean power companies have emerged as a series of problems as state-owned enterprises. In order to break the highly integrated state of government and enterprises, the company is preparing for privatization reforms. In 1989, after the Seoul Olympics, the South Korean government privatized 21% of the state-owned company. At this time, South Korea is undergoing a large-scale industrialization process. In order to ensure the development of industries such as shipbuilding, automobiles, steel, and electronics, the government has provided strong support to Korea Electric Power Co., Ltd., and 40% of South Korea’s foreign debt is used to invest in it. It also deservedly became the “transfusion umbilical cord” of Korean industry.

However, with the outbreak of the Asian financial crisis in 1997, South Korea’s export industry fell sharply, domestic electricity consumption also declined sharply, and South Korea’s power company had to further reform. In 2001, it was split into six parts, of which nuclear power was all part of State-owned. National nuclear power is managed by Korea Hydro & Nuclear Power Co., Ltd. (KHNP), a subsidiary of Korea Electric Power Co., which is the largest of the six subsidiaries. This is enough to see the status of nuclear power in Korean power.

In the 1980s, KEPCO signed contracts with domestic and foreign companies and manufacturers. Six units were successively built in China. The entire nuclear power project was gradually managed, and certain nuclear power technologies were acquired. At the same time, power plant management experience was accumulated. In this process, the Korea Electric Power Corporation uses scattered subcontracting for nuclear power construction instead of general contracting. This initiative laid the groundwork for the subsequent development and export of nuclear power, as it acquired advanced technology and trained a large number of experienced nuclear power suppliers and contractors.

Since then, South Korea's nuclear power has entered technological innovation and breakthrough expansion. In the 1990s, South Korea designed the "Korea standard nuclear power plant" OPR1000. In 2002, it successfully developed a new generation of nuclear reactor project APR1400. At this point, South Korea has a complete nuclear power unit design system and can announce that it has mastered the core technology of nuclear power. It is expected that by the end of 2012, South Korea’s nuclear power will fully realize its own property rights, and as a result, South Korea’s power company has increased its confidence in the global nuclear power business.

Integration mode The nuclear power industry in China and South Korea started almost at the same time and both tried to adopt the development path of “introduction-absorption-indigenous innovation”. However, judging from the current situation, the road to nuclear autonomy in South Korea has already come into being. In exploration.

If the basis for the development of nuclear power in both countries is based, China’s foundation is far more abundant than in Korea. Zhao Chengkun used two triangular types to describe the development of nuclear power in the two countries: "China's nuclear power has always been a positive triangle. Nuclear power is at the bottom of scientific research. It is very strong, and nuclear power management and construction is at the top of its weak position. Its nuclear power was originally an inverted triangle, nuclear power and scientific research forces were in the weakest bottom position, but nuclear power plant construction was a success, and after years of development, South Korea slowly built this inverted triangle shape into a square. ”

"In addition to the government's consistent support, the important point of South Korea's nuclear power success is that the target is set. The technical route for the development of nuclear power is very clear, which has greatly helped it grasp the technology and carry out independent innovation." Zhao Chengkun said in an analysis of the reasons, the 80s In the mid-term, based on the steam supply system of Westinghouse System 80 in the United States, the nuclear power industry in South Korea began to implement the standardized design of nuclear power plants, and has always put PWR as a key reactor type.

However, in this development process, the entire construction and operation team integration system of South Korea's nuclear power can not be ignored. The operating model, which is based on the Korean Hydro Power and Nuclear Power Co., Ltd. (KHNP) under the Korea Electric Power Corporation, has a clear division of labor and high efficiency.

Under the coordination of the government, the Korean nuclear power construction has adopted a single system of management, and South Korea's hydropower and nuclear power company, as the sole owner of domestic nuclear power, has managed and operated nuclear power plants for the construction, operation and operation of nuclear power plant projects. "It bears the ultimate responsibility for nuclear safety and is the licensee for construction and operation," Su Yong, senior engineer at China Nuclear Power Engineering Co., Ltd. told reporters.

Under the organization of Korea Hydro Power and Nuclear Power Co., Ltd., Korea Electric Power Engineering Corporation (KOPEC) is the only nuclear power company, AE (Architect Engineering Inc.), which is responsible for the overall design of the power station. It also includes a nuclear steam supply system, which is another part of the Korean power company. It belongs to the company.

Doosan is the only manufacturer of nuclear power plants. It supplies Korea nuclear power with major equipment including reactor pressure vessels and steam generators. South Korea’s nuclear fuel supplier is also unique. The Korean Nuclear Fuel Corporation (KNF) is responsible for the manufacture and supply of fuel for Korean nuclear power plants. The construction of nuclear power plants is not one of them, including major corporations such as Hyundai, Samsung and Daewoo. In addition, the Korea Institute of Atomic Energy is independent from other companies and is responsible for the research and development of nuclear power technology.

In this system, all parties have clear responsibilities. Once there is an overlap in the division of labor, the government will have to intervene and redistribute it so as to avoid internal domestic consumption. This integrated system of construction and operation teams has a high degree of concentration. The level of specialization of all parties has gradually increased during the development process, and it has also become more and more well-developed. Therefore, it can have outstanding performance in its work. "In the path of self-determination, South Korea plays an important role in this integration system," said Su Shi.

This model has also been questioned, and opponents believe that its monopoly is too high, which is detrimental to the competition in the nuclear power market and diversification of property rights. Especially for KEPCO, companies that develop several important businesses for nuclear power are affiliated with it, making it appear to be a true combination of interests.

However, in the eyes of some other industry professionals, the Korean electricity company after the reform in 2001 has adopted a cost-based power model under government control. Although it monopolizes Korea’s electric power business (not only nuclear power), it is heavily controlled by the government and does not allow its subsidiaries and subordinate companies to stir up trouble in the market and strictly control the price of electricity. South Korea's power is to a certain extent comparable to South Korea's power department, but it is also a highly market-oriented market player. Wang Dongrong believes that “the way South Korea’s electric power company is now going is very successful and worth learning”.

In contrast, the development trend of South Korea's nuclear power, at this time its focus of attention has long been beyond the country, will look to invest in the global and nuclear power giants short-handed handover.

After the establishment of the global market, South Korea’s power companies have made the most shocking events in the world. In 2009, they led a coalition led by domestic companies, Lectra France’s nuclear power group Areva, United States General Electric (GE). Two old nuclear power export companies successfully won the United Arab Emirates’ $40 billion nuclear power plant construction, fuel supply, and post-operational, maintenance agreements.

The successful signing of this agreement marks the successful entry of South Korea into the world’s sixth-largest nuclear power exporter following the United States, France, and other countries. This made Li Yuncan, the prime minister who had just taken office, overjoyed.

According to the Korean Atomic Energy Act, the Atomic Energy Commission (AEC) is the highest body of nuclear energy, and the Prime Minister of South Korea is responsible for it. The Ministry of Science and Technology (MOST) is fully responsible for nuclear R&D, nuclear safety and nuclear safeguards. According to statistics, all South Korea’s nuclear power industry projects adhere to the “Go Global” strategic decision-making system of the state-lead nuclear power centered on the Prime Minister. The Ministry of Industry and Energy and the Ministry of Education and Science are the mainstays. The Ministry of Finance and Economics and the Ministry of Foreign Affairs and Trade are the supporting agencies. The Atomic Energy Commission supervises and directs the project. In the end, the Prime Minister coordinates project cooperation.

Prof. Xu Jiaolie revealed such details to reporters. In the UAE project in 2009, the biggest competitor of the Korea Electric Power Company was actually Areva, which was basically established by the UAE as a nuclear power contractor. But in the final hours, UAE officials decided to visit South Korea. After visiting a nuclear power plant under construction, the UAE finally chose KEPCO.

This is a thrilling success. However, it is undeniable that the alliance responsible for the construction of nuclear power plants, which is specifically responsible for the construction of nuclear power plants, is indeed a world-class competitive force. Unlike AREVA in France, which owns a complete set of nuclear power export support units, Korea Electric Power Company, in addition to its Korea Electric Power Engineering Co., Ltd. as the nuclear power AE company of the project, South Korea Hydropower and Nuclear Power Co., Ltd. is responsible for the support and promotion of the project, In addition, it has also combined well-known domestic construction companies such as Hyundai Construction and Samsung Products and equipment companies like Doosan Heavy Industries (which includes foreign companies such as Westinghouse and Toshiba, etc.), and Korea Electric Power Co., Ltd. has led South Korean companies to complete the "cluster" trend and complete The industry chain model goes abroad.

Li Longxi is a senior executive of Korea Electric Power Co., Ltd. He has more than 30 years of experience in nuclear power construction and is the main leader in this UAE nuclear power project. According to him, in addition to providing fuel for nuclear power plant construction and post-operation and maintenance, KEPCO also needs to be responsible for UAE’s human resources development, training, and education projects on nuclear power. Because the United Arab Emirates hopes to train its nuclear power personnel through this project.

In early 2010, South Korea announced the "Strategy for the Industrialization of Nuclear Power Exports," and plans to export 80 nuclear power plants overseas by 2030, generating US$400 billion in revenue, and increasing its share of the world's new nuclear power plant market to 20%, allowing South Korea to become a nuclear power exporter. The third largest country. Judging from the performance of KEPCO's current UAE project and its industry chain model, this goal is not an exaggeration.

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