An Economic Impact Analysis of Transmission and Substation Network Investments for Accelerating Renewable Energy Expansion in South Korea: Modeling and Policy Perspectives

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Authors: Jae-Hee Jo, Min-Ki Hyun, Seung‐Hoon Yoo
Cited by: 0

Abstract

South Korea’s 11th Long-term Plan for Transmission and Substation Equipment (LPTSE, 2024–2038) invests KRW 72.8 trillion (USD 52.3 billion) to integrate 91.9 GW renewables while securing supply for semiconductor/artificial intelligence demand concentrated in the Seoul Metropolitan Area. This study aims to quantify LPTSE’s national economic effects and spatial equity implications using input–output (IO) analysis. A demand-side IO model—calibrated to 2022 national tables with a novel transmission and substation investment sector—disaggregates investments across five key sectors and estimates production, value-added, wage, and employment multipliers, complemented by multiregional spatial analysis of high-voltage direct or alternating current corridors. The results project KRW 128.2 trillion (USD 92.2 billion) total production, KRW 54.1 trillion (USD 38.9 billion) value-added, KRW 30.9 trillion (USD 22.2 billion) wages, and 578,000 jobs over 2025–2038, with coastal generation regions bearing infrastructure burdens while benefits accrue nationally. The findings demonstrate transmission investments as macroeconomic catalysts, highlighting the need for regionally differentiated compensation addressing land-use conflicts along export or transit corridors.

Fields of Study & Subjects

Social Acceptance of Renewable Energy Environmental Impact and Sustainability Sustainability and Climate Change Governance

Publication details

Journal / source
Land
Volume
15
Issue
1
Pages
107–107
Publication date
7 January 2026
Language
EN