| 摘要 | 1. Research Purpose
According to the National Energy Plan established by the government in 2008, the Korean government is supposed to increase share of nuclear power generation facilities up to 41 percent by building new 20 units of new nuclear power plants by 2030. Costs involved in constructing new nuclear power plant are estimated at approximately 33 trillion won, if such an original plan would be implemented as it planned. Hence, how to finance constructing such a many new nuclear power plants will appear as a fundamental issue in nuclear power industry.
Taken together, this study tries to overview the current global trend on nuclear power projects before and after Fukushima nuclear accident, and also take a look at changes in international opinion about it and the future direction. Furthermore, this paper deals with essential measures to fund for constructing nuclear power plants in addition to discussing characteristics and trends of the nuclear power project.
2. Summary
In general, nuclear industry belongs not to free competition sector but to government intervention. Hence, nuclear power can not be considered as pure generation business. Countries like USA, Japan can allow private utilities to do nuclear power business. But in this countries, pursuing nuclear power should have permission by nuclear authority. Hence, the fundamental premise should be that we should prepare financing scheme within maintaining publicness of nuclear power business.
And, the desirable solution in nuclear power financing would be based on power sales revenue in electricity wholesale market. Sales revenue is compensated only by electricity price and the price should be determined by fair competition. Bilateral contract or forward contract can be done outside electricity wholesale market. Most important fact is that we should guarantee proper rate of return for nuclear power business.
However, retail rate that would be below real cost of providing electricity does harm the wholesale market. The retailer, Korea Electric Power Corporation(KEPCO) is passing through its loss to its generation subsidiary by using compensation factor scheme.
Hence, it is necessary to introduce new compensation scheme for improving investment efficiency in power generation sector. If wholesale market compensation scheme is improved, then the nuclear power generation can have better financial structure. Improved financial structure is expected to help in maintaining credit rating and preparing financing scheme.
All methods that are usually being introduced to raise funds are necessary in order to finance the investments on a large scale due to the nature of nuclear power project. The financing for the building of the nuclear plant via initial public offering(IPO) may well be the appropriate method, if obstacles can be removed at this point in time. Social and political major variables are to have a profound effect on the process of IPO since Korea Hydro Nuclear Power Corporation(KHNP) is a public enterprise, the only participant to the nuclear power project in Korea. More than all, this is not a time for KHNP to promote IPO, arguing there are too many concerns about industrial stability, after the Fukushima nuclear accident in March, 2011.
Therefore, first of all, raising the percentage of borrowings(=debt loan) would be considered. That is to say, the options for expanding borrowed money under the optimum level will need to be reviewed. By expanding borrowings can help increasing profitability and growth for the business because cost of debt is relatively cheaper than that of capital.
Indeed, the proportion of borrowed money is expected to grow in the process of establishing a large-scale investible funds. A suitable credit rating, however, should be maintained by controling debt ratio in order to avoid a great of financial risk caused by steep raise in debt loan.
And, if private capital financing such as IPO is necessary due to failure in maintaining appropriate credit rating, the fact that government must minimize social disorder caused by anti-nuclear side claiming IPO as privatization policy movement should be considered as top priority. Hence, the government should establish systemic and detailed financing plan to prevent and minimize social disorder caused by implementing nuclear power development plan.
3. Research Results and Policy Suggestions
As shown in nuclear power projects in the developed countries, the biggest obstacles to constructing new nuclear power plants in privatized nuclear power markets are that nuclear power project is a capital-intensive industry and has caused great uncertainty due to its long-term project and economic, social and political factors, making investors reluctant to participate in the markets without government support and government guarantee. If Korea plans to continue to push ahead with constructing new nuclear power plants, removing these obstacles seems hard to solve with just delegating the responsibility for raising funds to nuclear power operators.
However, operators for nuclear power projects also need to devise various measures for cost savings. They also should enhance financial soundness with effort to reduce capital-related investment cost and fuel costs, the exploitation of inventory asset, but IPO and paid-in capital increase inevitably would be introduced in the medium to longer term in order to move forward with plans for current constructing nuclear power plants. Nevertheless, these actions are undecidable independently by the KHNP since such actions are related to industry structure of main agents of nuclear power projects. Thus, constructing nuclear power plants cannot help but be closely linked to their restructuring plan or policy including relevant organizations for nuclear power projects. In the short run, the government should prepare several measures to maintain its country's credit rating for nuclear utility to maintain its proper credit rating.
It became more important that the environment to review globally nuclear power expansion plan after Fukushima accident was being formed. Under this hostile environment against nuclear power expansion, to make proper financing scheme for current nuclear power expansion plan can be looked a little hasty. Hence, it is necessary to design financing scheme for new nuclear power expansion plan in consideration with that the social public opinion is being formed for building nuclear power and public policy with regard to nuclear power among other countries should be scrutinized. |
