Implementation of regional electricity rate differential system and data center issues

The Distributed Energy Special Act has been implemented and in accordance with Article 45 of the Act,

A legal basis has been established to differentiate electricity rates.

Accordingly, the price that KEPCO purchases from the wholesale market will be 2025.

It is said that prices sold in the retail market will be differentiated starting from 2026.

Excluding Incheon, the current electricity supply is largely structured by distributing electricity from power plants on the east coast to the metropolitan area.

The problem is not the amount of power generation, but the difficulty in transmission and distribution.

Then shouldn’t we just build more transmission lines?

Just as there was the Miryang transmission tower incident that made national news,

It is a problem that creates enormous conflict.

From the perspective of local residents, it is important to provide electricity to the metropolitan area.

Why do I have to suffer the damage? Because of the obvious logic.

Of course, a compensation system was established through the Songju Act.

I hope the compensation is enough to calm the conflict.

It wouldn’t have been a problem,,

In other words, the purpose of the Distributed Energy Special Act is to

build a large-scale power plant

Rather than supplying electricity through large-scale transmission,

You make the electricity for your area.

This is an intuitive intention.

In particular, it is a law that targets the problem of concentration of data centers in the metropolitan area.

If all data centers registered by KEPCO are allowed,

The 20 million people in the metropolitan area cannot use electricity for even three hours a day.

The number one fixed cost in data centers is electricity.

By raising industrial electricity prices in the metropolitan area, data centers are moved to regional areas.

I think I can kick it out.

Now that electricity costs are the same, everyone wants to build in the metropolitan area.

There are many reasons, but the main reason is real estate investment profits.

The problem is that small nuclear power plants (SMRs) fall into this category of distributed energy.

Being stuck

For small nuclear power plants that are not yet technically secured,

It can be seen that the supporting laws and regulations were created first.

Of course, it is used to supply electricity to data centers that are overflowing in the United States.

SMR is mentioned, but it doesn’t seem to have been verified yet.

And by designating a distributed energy specialized area,

Excluding KEPCO, distributed energy generators and electricity users

There is a provision allowing direct transactions in the region.

Of course, the transmission and distribution network is still monopolized by KEPCO.

KEPCO only charges fees for using the transmission and distribution network.

It seems that incentives for building distribution facilities and reducing usage fees are also allowed.

MS purchases Three Mile Nuclear Power Plant to operate a data center

If you look at it positively, the data center that was kicked out of the metropolitan area

Manufacturing plant operators are looking for regions with cheaper electricity costs.

It will be an incentive

If you look at it badly, will it ultimately be conditional privatization or mini-privatization?

It can also be seen as

And the authority to designate the area is power.

It’s a bonus to be noisy over preferential treatment…

Not all enforcement decrees have been issued yet.

I think only time will tell the exact details.

Although it did not cover all the extensive contents of the bill,

I think the skill of operation is important.