A report says the nation will pay 650 billion to 800 billion won a year for its proposed electricity aid to North Korea and 1.55 trillion to 1.7 trillion won in initial facility investment.

The Commerce, Industry and Energy Ministry on Wednesday submitted the report to the National Assembly.

Calling the expenses the cost of peace, the report said the government will use 2.4 billion won earmarked for the suspended light-water reactor project in the North's Shinpo region and then state funds.

Seoul has offered the North two million kilowatts of power in return for its nuclear dismantlement.