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'7GW of Power Grid Squatting'… Government Draws Sword Against 'Ghost' Operators

[비즈한국] The government has launched a cleanup of so-called 'power grid squatters'—ghost operators who occupy grid capacity without actually proceeding with power generation projects. Following directives from the President, an inspection conducted by the Presidential Office and the Ministry of Climate, Energy and Environment confirmed that these ghost renewable energy projects amount to a total of 7 gigawatts (GW). The government plans to redistribute this capacity to operators with genuine intent to generate power, thereby alleviating grid bottlenecks.

An official from the Presidential Office told 'Bizhankook' that the power capacity held by ghost renewable energy operators identified from last summer to the present has reached 7GW. This is equivalent to the production capacity of seven nuclear power plants. Out of this, approximately 2GW has been recovered and redistributed to follow-up operators who were on the grid connection waiting list.

The Presidential Office official stated, "Ghost operators were found not only in areas with grid management substations but also in the Gangwon and Yeongnam regions," adding, "However, since there were fewer waitlists in those areas, the capacity was primarily redistributed to the Honam region." 'Grid management substations' are facilities where Korea Electric Power Corporation015760 restricts additional power generation, subject to permanent output control, in areas where grid capacity is saturated due to the increase in renewable energy. About 200 such locations have been designated, primarily in the Honam, Jeju, and East Coast regions.

This measure is a follow-up to the instructions given by President Lee Jae-myung during the Senior Secretaries and Advisors meeting held on July 10, 2025. During that meeting, a plan was reported to identify ghost operators and expand grid connection volumes to resolve the power grid saturation issue in the Honam region, which was raised at the Gwangju Town Hall meeting on June 25, 2025.

The Ministry of Climate classifies operators as 'ghosts' if they have not engaged in any power generation activities, such as construction of power facilities, for two years after receiving a power generation business permit and signing a power grid usage contract. The government is taking measures such as terminating grid usage contracts or demoting the connection priority of these operators. The freed-up grid capacity is used to accelerate connection timelines for other operators waiting on the grid, and any remaining capacity is redistributed to new applicants.

The government announced in February last year that it had identified 1.7GW of ghost operator capacity as of November 2024. In October last year, it stated that it would redistribute 4.1GW of grid capacity recovered between July 2024 and September last year. Following the President's directive, active inspections conducted from last summer to this year significantly increased that number to 7GW.

One cause of these ghost operators is delays in permits and approvals. In particular, onshore and offshore wind power projects involve numerous regulatory processes, such as military operational consultation and environmental impact assessments. This leads to cases where projects stall and fail to get off the ground.

Another cause is operators attempting to profit from the trade of power generation licenses. The power grid is a limited national resource; in regions where grid saturation is severe, a project license that secures grid connection rights holds high market value in itself. Instead of operating power plants for profit, some operators target short-term market gains by 'squatting' on grid capacity, adding a 'premium,' and then selling the business rights to third parties. In the process of such trading, some remain as ghost operators.

Ghost renewable energy operators have a negative impact on the energy transition and the industrial ecosystem. By occupying limited grid resources, they prevent genuine operators who intend to build power plants and produce electricity from connecting to the grid. If ghost volumes take up capacity, latecomers are forced to wait until the power grid is expanded.

This also causes confusion in the government's power supply and demand planning. The government develops grid expansion plans based on permitted generation capacity; if 'fake capacity' that does not actually produce electricity is included, the accuracy of grid investment planning suffers.

To address this, the government amended the 'Regulations on the Use of Electric Transmission and Distribution Facilities' in April 2024, providing a basis for regular inspections of ghost operators and the termination of grid usage contracts. According to Article 22, Paragraph 6 of the regulations, contracts can be terminated if no measures to begin operations, such as starting construction, are taken by two years from the contract date. Furthermore, operators are required to submit documentation annually regarding their licensing progress and project status, and failure to do so will result in contract termination.

Even when applying for an extension of the operation start date, evidence such as construction plan authorization must be submitted; if the basis for the extension is not substantiated, the connection priority is downgraded. A Ministry of Climate official said, "Previously, extensions were easy, but now we examine the grounds for extension rigorously," adding, "Related departments are also working to prevent ghost operators at the project permitting stage."