South Korea moves to localize water equipment at power plants, expand water-energy industry ecosystem

The Ministry of Climate, Environment and Energy said Monday it will hold a "Water-Energy Convergence Cooperation Day" on Tuesday at the National Water Industry Cluster in Dalseong-gun, Daegu.

The event will bring together seven institutions under the ministry: Korea Environment Corporation, Korea Water Resources Corporation (K-water), and five state-owned power companies — Korea South-East Power, Korea Southern Power, Korea East-West Power, Korea Western Power and Korea Midland Power.

At the event, the participants will unveil a jointly developed implementation plan for localizing water equipment at power plants, aimed at expanding the water-energy convergence industry ecosystem. The seven institutions will also sign an MOU to formalize mutual exchange and cooperation between public institutions in the water and power sectors.

Through the initiative, water equipment currently supplied by foreign manufacturers for the installation and operation of power plants will be replaced with domestically produced alternatives. The move is intended to stabilize the supply chain for critical water equipment at power plants, reduce procurement costs, and help domestic water companies open new markets at home and abroad while building a sustainable water-energy convergence industry ecosystem.

Under the MOU, Korea Environment Corporation, K-water and the five power companies will cooperate to accelerate the localization of water equipment not only at facilities currently in operation but also at power plants slated for future construction. They will also pursue joint research and development and co-demonstration projects bridging the water and power industries.

The collaboration is expected to expand the presence of domestic water companies in a market worth about 200 billion won ($130 million) annually, covering new installations of water treatment facilities at power plants as well as their operation and maintenance.

Meanwhile, following the signing ceremony, the participating public institutions will share information on power project procurement plans and the localization of ultrapure water technology. Five leading water companies will also present technologies ready for near-term localization as well as promising candidates for medium- and long-term development.

A one-on-one technology consultation session between the five power companies and small and midsize water firms will also be held, connecting companies seeking to collaborate with the power utilities.

The event will additionally feature introductions to new domestic and overseas projects being pursued by the five power companies, along with information on the technical and product specifications required of small and midsize water firms for potential partnerships and details on the partner registration system.

"Greater results can be achieved when water and energy public institutions pool their efforts and work together," said Cho Hee-song, director general for water management policy at the Ministry of Climate, Environment and Energy. "We will use this MOU as an opportunity to strengthen the cooperation framework between public institutions and industry, and further enhance support for small and midsize water companies that have struggled to break into the power plant market."