Assessing the levelized cost of energy in South Korea

This study evaluates the levelized cost of energy (LCOE) for various energy technologies in the Republic of Korea (Korea) from 2023 to 2050, highlighting cost trajectories and potential crossovers among competing technologies. The analysis projects that, based on our set of assumptions, utility-scale photovoltaic systems achieve lower LCOEs than nuclear by 2030, while fixed offshore wind is expected to become cost-competitive with coal-fired generation around the same time. Floating offshore wind is projected to reach cost parity with coal in the late 2030s. Co-firing with natural gas and green hydrogen is identified as the highest-cost generation option due to high natural gas and green fuel costs and declining capacity utilization. This study further examines the potential for hybrid systems that integrate renewable energy with energy storage to serve as flexible, cost-effective, zero-emission alternatives to green hydrogen-based generation. Spatial LCOE assessments indicate that near-shore offshore wind sites may achieve lower costs despite modest capacity factors, contingent on site-specific factors such as grid integration and social acceptance. The findings indicate that renewable energy technologies are expected to experience continued cost declines, with solar photovoltaic becoming the most competitive energy source in Korea by 2030–2035. Incorporating social costs accelerates this shift from conventional alternatives.