(image: KobizMedia/ Korea Bizwire)
SEOUL, Aug. 29 (Korea Bizwire) — The cost for generating power by burning coal has hit a new high this year. This is due to the decrease in production by major coal producing nations.
As Korea’s reliance on coal as an energy source is the highest, and as fine dust emissions from coal power plants pose a significant health risk, many critics are calling for a diversification of energy sources, lowering the nation’s dependence on coal.
According to energy industry insiders, the average unit cost for generating power with coal per kWh was 52.64 won between January and July this year.
This represents a 10 percent increase from last year, in which the average unit price was 47.62 won, replacing the previous record high set in 2012 at 48.74 won.
Compared to 2016 when the unit price was 34.71 won, this is more than a 50 percent increase.
Experts say that the unit price will rise even further after April of next year, when the new tax reform on energy is to be introduced.
The international price for the bituminous coal used to fuel coal power plants has increased by 21.2 percent on average per year over the last three years, as production from Australia and other major coal producing nations has faltered.
The price of bituminous coal has risen from $57.50 per ton in 2015 to $101.40 recently.
H. S. Seo (hsseo@koreabizwire.com)
