The three private power generators on South Korea's east coast, GS Donghae Electric Power, which operates Donghae's Bukpyeong thermal power plant, Samcheok Blue Power and Gangneung Eco Power, which operates Gangneung's Anin thermal power plant, face losses amounting to hundreds of billions of won because of chronic transmission constraints.
Despite having up to 7 GW of advanced baseload generation capacity, they are unable to operate even half their generating capacity because construction of the extra-high-voltage transmission line between the east coast and Shin-Gapyeong has been delayed.
The article argues, however, that these transmission constraints could become a decisive opportunity to transform the east coast into South Korea's largest AI data center cluster. While the Seoul metropolitan area faces electricity shortages for data centers, it calls for urgent adoption of an east coast linkage model for mutual benefit, directly connecting the substantial power resources stranded in Donghae, Samcheok and Gangneung with local AI data centers through Direct PPA arrangements and distributed energy special zones.
The three large private power plants on Gangwon's east coast have utilization rates of just 20% to 30% because of transmission constraints.
GS Donghae Electric Power, operating Donghae's Bukpyeong thermal power plant, has 1.2 GW of capacity. It is geographically closest to the AI data center that GS Group is pursuing in the Donghae Bukpyeong Second General Industrial Complex, a concept totaling 2.4 GW, making it the optimal location for a direct power supply, in the article's assessment.
Samcheok Blue Power has 2.1 GW of modern generation capacity but faces reduced utilization because transmission to the Seoul metropolitan area is constrained.
Gangneung Eco Power, operating Gangneung's Anin thermal power plant, has 2.08 GW of capacity. It has been directly affected by transmission constraints, including shutting down its second unit or facing output restrictions.
The article argues that directly linking 7 GW of generation facilities left idle because they cannot transmit electricity to the Seoul metropolitan area with local AI data centers as their power source would create a mutually beneficial arrangement. Generators could improve utilization and their business prospects, while data centers could immediately secure reliable electricity.
1. Allow special provisions for a Direct PPA (power purchase agreement) between power plants and data centers
Under the current framework, it is difficult for power plants to sell the electricity they generate directly to data centers without going through KEPCO's grid. The article calls on the National Assembly and central government ministries to swiftly apply special PPA provisions for transmission-constrained areas under the Special Act on the Promotion of Distributed Energy. It identifies the key task as establishing legal and administrative arrangements that allow electricity generated by GS Donghae Electric Power, Samcheok Blue Power and Gangneung Eco Power to flow directly to AI data centers in Donghae and Gangneung.
2. Electricity alone is insufficient: Build cooling systems linked to Doam Dam's water resources
Very large water resources are essential to remove the substantial heat generated during AI data center operation. The article calls for integrating infrastructure that uses waterways downstream of Doam Dam in Pyeongchang, within the Gangneung Namdaecheon river system, to supply data centers with suitable low-temperature cooling water. It argues that actual investment from global technology companies would be attracted by completing an integrated infrastructure package combining generation in Samcheok, Donghae and Gangneung with Doam Dam's water resources.
3. Extend Donghae's initial 100 MW permitting model to Gangneung and Samcheok
Donghae rapidly completed building approval for an initial 100 MW after arranging a connection with GS Donghae Electric Power and conducting a substation grid impact assessment. The article argues that Gangneung and Samcheok should similarly move beyond debates over ambitious aggregate capacity figures and adopt first-stage fast-track permitting tailored to nearby power plants' capacity.
The article describes the GS power plant in Donghae, Samcheok Blue Power and the Anin power plant in Gangneung not as isolated facilities but as the three main components of an AI energy belt that could transform the industrial structure of Gangwon's east coast.
It criticizes political accusations and unproductive disputes focused solely on the power grid, arguing that this neglects local resources despite the availability of these substantial generation assets.
The article calls on ruling and opposition politicians, the legislature and the executive branch to work together on designating an east coast distributed energy special zone and introducing a Direct PPA tariff rather than filing complaints. It argues that supplying local AI data centers with electricity from Donghae, Samcheok and Gangneung power plants would allow Gangwon's east coast to move beyond its dependence on idled coal-fired generation and become a core center of South Korea's advanced AI industry.
Original Korean article: kbcs.kr
English brief by Korea Wind Intelligence, koreawindintel.com
