The Alliance for Resource & Climate Justice Center (ARC Center, hereinafter “ARC Center”) has published the policy brief, “Economic Viability Assessment of Jeju’s Proposed 300MW Gas Power Plant,” to examine the economic viability of the proposed construction of a new 300MW gas-fired power plant in Jeju under Korea’s 10th Basic Plan for Long-term Electricity Supply and Demand.
The policy brief was prepared to assess whether the proposed gas power plant is genuinely necessary for ensuring Jeju’s electricity supply, to evaluate the operational performance of existing gas-fired power plants, and to examine whether the proposed transition to green hydrogen can be economically justified.
The analysis shows that electricity demand in Jeju has remained relatively stable, while the commissioning of the third HVDC interconnection has significantly expanded the island’s electricity supply capacity. At the same time, Jeju’s power system is already shifting toward renewable energy, and the economic performance of existing gas-fired power plants has deteriorated rapidly due to declining utilization rates and increasing operating losses.
The report also concludes that the proposed green hydrogen co-firing and full-conversion plan—presented as a key justification for the new power plant—is unlikely to be economically viable because of the enormous infrastructure investment required, high electricity generation costs, limited carbon reduction benefits, and insufficient hydrogen supply.
To make the key findings more accessible to the public, ARC Center has produced a factsheet summarizing the main conclusions of the policy brief. The factsheet is organized around six key themes:
1. The proposed 300MW gas-fired power plant should be comprehensively re-evaluated from the perspectives of electricity supply, economic feasibility, and the energy transition.
2. Electricity demand in Jeju has remained stable, while electricity supply capacity has expanded significantly.
3. Jeju’s power system is already transitioning toward renewable energy, reducing the role of fossil fuel generation.
4. Existing gas-fired power plants in Jeju have already entered a structural deficit due to declining utilization rates and growing operating losses.
5. Green hydrogen co-firing and full conversion cannot effectively improve the project’s economic viability because of high infrastructure costs, expensive electricity generation, and limited carbon reduction benefits.
6. Rather than proceeding with new construction, the project should be comprehensively re-evaluated based on its economic feasibility, impacts on the power system, and consistency with Jeju’s carbon neutrality goals.
ARC Center hopes that this factsheet will help citizens and stakeholders better understand the complex issues surrounding the proposed 300MW gas-fired power plant and encourage a more informed discussion about the necessity and economic feasibility of the project.