Average SMP in April in Korea was KRW 164.86/kWh... 18% lower than last year.

  • Impact of the 11.3% decrease of LNG calorific value //


(Prepared by Kimoo Heo, Source: KPX)

The average power market price (SMP) dropped 18 percent in April compared to the same month last year due to lower LNG prices. According to the provisional operating data of the power market of the Korea Power Exchange, the average SMP in April was 164.86 won per kWh, down 37.25 won from 202.11 won in the same period last year. 

This is due to an 11.3 percent drop in the calorific value of LNG, which determined 74 percent of the SMP limit price last month, from 114,224 won per Gcal in April last year to 112,999 won. This contrasts with a 12.2% jump in the calorific value of coal, from 44,267 to 49,688, and no change in the price of oil, which remained unchanged at 134,500.

The highest monthly average SMP on record was 267.63 won per kWh in December last year. April through June is typically the lowest SMP period of the year due to lower electricity demand.

Lower SMPs and the cap prices policy have also led to lower average settlement prices. The settlement price is the amount of electricity transactions excluding RPS obligation costs and emission trading costs divided by the amount of electricity transactions, and is closely related to the actual profit of power producers.

Settlement prices averaged 129.18 won per kWh in April, down 24.05 won (16%) from 153.23 won a year earlier. Earlier, the Ministry of Trade, Industry and Energy (MOTIE) announced the emergency settlement cap prices for April at 164.52 won on the mainland and 228.90 won on Jeju. 

The amount of electricity traded was 39,878 GWh, down 1,400 GWh from April last year due to a decrease in the number of working days. The power transaction value was 5.7608 trillion won, down 816.6 billion won from 6.5773 trillion won a year earlier. The cumulative power trading volume for January-April was 178,909 GWh.

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  • This blog is made to share energy news in Korea, especially for renewable energy such as solar PV, wind power, electric vehicle, EV charger, ESS and hydrogen, etc
  • This article is translated into English by DeepL, and partly edited and summarized by Kimoo Heo in Korea, https://www.linkedin.com/in/kimoo-heo-49395557/

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