Energy Committee: South Korea’s Electricity Market Outlook
On June 17, 2025, the FKCCI held a new session of its Energy Committee in Seoul, focused on developments in the South Korean electricity market. The meeting featured a presentation by Mr. Neal Won, Principal Research Analyst at S&P Global Commodities, who provided insights into the 11th Basic Plan for Electricity Supply and Demand (BPE), the evolving energy mix, current tender mechanisms, and key market forecasts.
The BPE serves as South Korea’s main strategic planning document for the power sector, guiding public tenders, infrastructure development, and investment priorities. The analysis highlighted discrepancies between government targets and S&P’s projections, particularly regarding the timelines for nuclear and renewable energy deployment. Regulatory and financing challenges were noted, especially foroffshore wind and solar projects, while reliance on gas-fired power generation is expected to persist through 2029.
The presentation also covered recent changes in the fixed bottom OW tendering framework, which now includes additional qualitative criteria such as domestic investment and energy security, alongside pricing considerations.
This session provided an opportunity for committee members to discuss the latest trends shaping the Korean energy landscape and to better understand the long-term dynamics influencing the sector.
