The Nuclear Energy Agency (NEA) announced today a new study aimed at optimising the Korean electricity and energy system to meet the country’s policy goals. The in-depth study, funded by the Ministry of Science and ICT of Korea, will be carried out by the NEA in collaboration with experts from key Korean institutions, including the Korea Atomic Energy Research Institute (KAERI) and Korea Hydro & Nuclear Power (KHNP).
“Building on the country-specific system cost studies conducted for Switzerland and Sweden, the NEA is pleased to extend this initiative to Korea,” said NEA Director-General William D. Magwood, IV. “The analysis of diverse energy policy pathways will provide Korea with evidence-based insights to support energy policy discussions. As countries around the world strive to ensure energy security and achieve environmental goals, the NEA stands ready to support governments to achieve this in the most cost-effective manner.”
A key insight from NEA’s advanced economic analyses has been that each country’s best path to meet energy security and environmental targets is unique based on its characteristics and resources. NEA system cost analyses are based on in-depth information about the workings of a country’s electricity and NEA’s state-of-the-art technoeconomic modelling. Careful development of policy scenarios is built in close co-operation with country experts and policymakers. These analyses help policymakers to understand the likely cost implications of different strategic choices when designing future electricity and energy systems.
The first phase of the study began in July 2025 and will assemble the necessary data, adapt POSY2 (the new generation of the NEA’s Power System Model for System Cost Evaluation) to the specificities of the Korean electricity sector, and define the relevant scenarios. The second phase of this collaborative effort, including the detailed modelling of each scenario, will start in January 2026. The project will proceed in close co-operation with KAERI experts, which includes research stays for capacity building at the NEA premises.
The study will yield important insights into the role played by nuclear energy, both Generation III+ reactors and small modular reactors (SMRs), in the generation of electricity, heat and hydrogen in a highly developed industrial country relying entirely on its own resources.
The NEA conducted a system cost study of Switzerland in 2022 to present different scenarios under which net zero carbon emissions can be achieved in the country by 2050. A system-cost study of the Swedish electricity and energy system is in preparation for release in early 2026.
