ID :
18864
Wed, 09/10/2008 - 21:40
Auther :
Shortlink :
https://oananews.org//node/18864
The shortlink copeid
KEPCO mulling Turkish nuclear reactor bid
SEOUL, Sept. 10 (Yonhap) -- South Korea's state-invested power supplier is weighing its options over its planned bid to build nuclear reactors in Turkey, the company's president said Wednesday.
Kim Ssang-su said that while he could not go into detail, the project involves
risk factors requiring close examination over the next few months.
"Discussions are underway, but there are many 'limitations' ... that need to
be discussed," the Korea Electric Power Corp. (KEPCO) head said.
He added that it would not be prudent to rush into a project of such a scale
based on short-term goals. A commercial reactor can cost more than US$1 billion
to build.
If KEPCO wins the project, it would be the first-ever export order for a locally
made nuclear reactor.
KEPCO said earlier in the year that it will likely make a joint bid with Turkey's
Enka Group to build three or five reactors generating a combined 5,000 megawatt
electric (MWe) of power.
South Korea has been trying to sell reactors for several years without much
success, despite having built its first reactor in 1977 and having the capability
to design, build and run state-of-the-art reactors.
In addition to the Turkey reactor project, Kim, who was recently appointed as
CEO, said there is a need to examine ways to link local electricity charges with
global energy prices.
The executive claimed that while gas and oil prices have soared 50-100 percent
since last year, all power charges remain frozen. He said that if this situation
is not remedied soon, KEPCO could face losses of around 1.9 trillion won (US$1.74
billion) in 2008.
He said in countries like Japan, a power company can adjust charges if there is a
noticeable rise or fall in crude oil and gas prices.
"I believe this is the way to go for South Korea," he said, pointing
out that the current system of locking prices actually fuels excess consumption
of energy because people are not under pressure to cut back.
Seoul has said that any utilities sector price hikes should be put off as long as
possible and be kept to a minimum due to negative impact on consumer prices,
which have shot up in recent months.
Kim Ssang-su said that while he could not go into detail, the project involves
risk factors requiring close examination over the next few months.
"Discussions are underway, but there are many 'limitations' ... that need to
be discussed," the Korea Electric Power Corp. (KEPCO) head said.
He added that it would not be prudent to rush into a project of such a scale
based on short-term goals. A commercial reactor can cost more than US$1 billion
to build.
If KEPCO wins the project, it would be the first-ever export order for a locally
made nuclear reactor.
KEPCO said earlier in the year that it will likely make a joint bid with Turkey's
Enka Group to build three or five reactors generating a combined 5,000 megawatt
electric (MWe) of power.
South Korea has been trying to sell reactors for several years without much
success, despite having built its first reactor in 1977 and having the capability
to design, build and run state-of-the-art reactors.
In addition to the Turkey reactor project, Kim, who was recently appointed as
CEO, said there is a need to examine ways to link local electricity charges with
global energy prices.
The executive claimed that while gas and oil prices have soared 50-100 percent
since last year, all power charges remain frozen. He said that if this situation
is not remedied soon, KEPCO could face losses of around 1.9 trillion won (US$1.74
billion) in 2008.
He said in countries like Japan, a power company can adjust charges if there is a
noticeable rise or fall in crude oil and gas prices.
"I believe this is the way to go for South Korea," he said, pointing
out that the current system of locking prices actually fuels excess consumption
of energy because people are not under pressure to cut back.
Seoul has said that any utilities sector price hikes should be put off as long as
possible and be kept to a minimum due to negative impact on consumer prices,
which have shot up in recent months.
