Exposed: Overcompensation of KEPCO's Coal Fired Power Plants

research 2025-11-10

Energy Markets & Policy Issue Brief Coal

Exposed: Overcompensation of KEPCO's Coal Fired Power Plants

Tom Janghyeok Lim

Tom Janghyeok Lim

Policy Analyst

About

This report analyzed expected returns of KEPCO's coal fired power plants based on their cash flow data to show the power plants' returns until 2024, and their expected profit when they reach 30 years of operation.

The result showed that KEPCO's coal fired power plants, despite the Settlement Adjustment mechanism that was meant to limit their profit, are still receiving excessive amount of compensation. The findings point towards the need to reform the current wholesale market that is solely focused on compensating fossil fuel power plants, to expedite Korea's energy transition.

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SFOC_Coal_Overcompensation.pdf

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Policy Research and Recommendations

We conduct in-depth analysis of climate, energy, industrial, and economic policies to propose viable policy alternatives and help bring about real policy change.
Legal Action and Litigation

We hold corporations and governments accountable when they delay climate action, utilizing a range of legal strategies, including litigation, to drive policy improvement.
Communications and Campaigns

We believe that the power to change the world lies with people. Through compelling messages and diverse communication channels, we raise public awareness about the climate crisis and inspire collective action.
International Cooperation

We understand that climate change knows no borders. Through networking and collaboration, we work with global environmental organizations to promote change at the international level.