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Kim Myung-ja The author is the chair of the board at KAIST and the former minister of environment. International media reactions to Korea’s “AI Basic Act, also known as the “Framework Act on the Development of Artificial Intelligence and the Establishment of a Trustworthy Foundation," which took effect on Jan. 22, have been broadly positive. Many noted that Korea moved quickly to enact a law that addresses both the regulation and promotion of AI before the core obligations of the “EU AI Act” come fully into force. At the same time, concerns have been raised that the law could dampen startup innovation and that it does not address issues such as AI systems’ energy consumption and efficiency, grid interconnection or data center cooling water, leaving legal and institutional linkages as a future task. The extensive seawall that also operates the world's largest tidal power plant in Ansan, Gyeonggi. The city, which has the lead in energy self-sufficiency of which nearly 10 percent is generated from renewable energy, plans to expand its renewable energy capacity including windfarms and offshore solar farms. [YONHAP] The global AI race has already moved beyond competition in computing power, including semiconductors, data, algorithms and GPUs, and beyond the battle for talent. It is now confronting bottlenecks in power infrastructure. Chief executives of global big tech firms have repeatedly warned that without a secure electricity supply, power grids, an appropriate energy mix and carbon-free power, there will be no room for the expansion and commercialization of the AI economy or for national strategies. The electricity required for AI model training and inference, cooling systems and AI services is enormous. As a result, Google, Meta, Apple, Amazon and Microsoft are transforming themselves from mere power consumers into buyers, developers and system players in electricity. They must respond to surging data center demand, uncertainty in power procurement and delays and bottlenecks in grid connections. In practice, shortages of large transformers have increasingly delayed data center power hookups and grid access for years. HD Hyundai Energy Solutions' solar modules installed in Arizona [HD HYUNDAI] Data centers require high-quality power with no outages, fluctuations or delays, supplied 24 hours a day, 365 days a year. As AI competition intensifies, big tech companies are shifting from 100% renewable energy (RE100), which targets 100 percent renewable energy, to 24/7 carbon-free energy (24/7 CFE). Because of intermittency, RE100 requires conventional energy to fill temporal gaps. Google has already declared a goal of using 24/7 CFE by 2030. International organizations, including the UN’s 24/7 CFE Compact, are developing related technologies, certification and operating standards, raising expectations that this will become an international norm. For now, RE100 remains the de facto global standard among corporate indicators. Over the past decade, solar power has risen to 7 percent of global electricity generation as of 2024, while its levelized cost of electricity, LCOE, has fallen by about 90 percent. This reflects China’s construction of an ultra-low-cost supply chain through economies of scale, capital investment, industrial policy and lower financing costs, allowing it to dominate 80 to 95 percent of the global solar value chain, from polysilicon to ingots, wafers, cells and modules, according to the IEA in 2023. In the Korean market, analyses suggest that the share of Chinese products has risen to around 90 percent by the mid 2020s. Related ArticleNuclear power plant construction back on, as Lee administration restarts plans for new reactors Nearly 4 in 10 firms participating in RE100 initiative face difficulties in sourcing renewable powerClimate minister’s reflection on nuclear power must be followed by actionGovernment, solar energy and equipment companies begin efforts to localize production Companies burn Korea in RE100's renewable electricity score Solar power’s LCOE itself is low. In reality, however, costs rise sharply due to the need for firm power to compensate for intermittency, measures to address output volatility, transmission network construction, frequency control and energy storage systems. As the share of renewables grows in the energy mix, the burden of resolving frequency maintenance, voltage stability, grid protection and control systems and bottlenecks in transmission and distribution networks increases both technically and institutionally, as the IEA has noted. Actual electricity generation and installed capacity are entirely different concepts. The capacity factor, calculated as actual generation divided by installed capacity multiplied by time, is only 13 to 17 percent for solar power, compared to 75 to 85 percent for nuclear power plants. Solar power plant siting faces constraints including large land requirements, terrain, solar irradiation, transmission access and public acceptance. These conditions make solar expansion particularly challenging in Korea. Although Korea’s average solar irradiation of 4.0 kilowatt-hour per square meter per day is around the global median, limited temporal and spatial dispersion increases storage and grid stabilization costs. With an east-west span of only about 300 kilometers (186 miles), the entire country lies within a single weather zone, causing simultaneous fluctuations in solar output. Lithium-based batteries are suitable for short-term storage measured in hours, but long-duration storage technologies remain insufficient. By contrast, the United States, with an east-west span exceeding 4,500 kilometers, can begin generation in New York in the morning and hand off to California in the afternoon, dispersing solar production across time zones. This reduces the burden of storage, reserves and grid investment through wide area networks and temporal diversification. China, with an east-west span of more than 5,000 kilometers, transmits abundant solar and wind power from the west to the east through ultra-high voltage direct current lines. An electricity pylon is seen in Yeongdeungpo District, western Seoul, on Aug. 7, 2023. [NEWS1] For Korea, a country with world-class communications networks and a leading semiconductor industry, becoming an AI powerhouse requires rapid expansion of power supply and grid infrastructure. A comprehensive approach is needed that links energy policy with industrial policy, encompassing renewables, nuclear power, including small modular reactors (SMRs), hydrogen, long-duration storage, High Voltage Direct Current transmission, energy demand management and improved data center energy efficiency, to integrate data centers, electricity, industrial siting and energy security. Nuclear power construction takes more than a decade from permitting and faces formidable hurdles, but it is necessary for the future. Early deployment of SMRs should also be accelerated. In the short term, extending the operating life of existing nuclear plants, with safety as a precondition, is unavoidable. AI leadership ultimately depends on power infrastructure. This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.