SEOUL/TOKYO : South Korean and Japanese power utilities are sustaining heavy losses, kept from passing rising generation costs on to customers and, according to analysts, forced to reconsider the timing of green investments.
KEPCO is staying afloat with bond issuances and bank loans. Debt had already reached 223 per cent of equity capital at the end of 2021. "Since renewable power fluctuates, investment is necessary in transmission infrastructure to grow the portion of renewables in energy mix," Na said."But it's a burden, as 30 trillion won in losses are forecast this year, and continued losses next year."
All eight utilities that have announced an annual forecast for the fiscal year to March 31, 2023, have warned of a net loss. Tokyo Electric and Kyushu Electric did not provide full-year outlooks.