Korea Electric Power Corp. (KEPCO) is hitting the accelerator to explore new energy industries. The Korean power giant plans to redouble investments for the nurturing of new energy industries to the tune of 6.9 trillion won this year.
With a scheme to tap future growth engines abroad, which will increase the portion of overseas revenues, KEPCO President Cho Hwan-eik said his company has decided to step on the gas to implement cooperative projects with Iran, including the construction of a projected energy self-sufficient island.
“We will change fundamentals by investing heavily into such new industries as energy efficiency projects,” KEPCO President Cho said in an interview with a vernacular economic daily. KEPCO Group’s investments will increase some 4 trillion won to 6.9 trillion won this year, he added.
Specifically, KEPCO will invest 3.4 trillion won in energy efficiency projects, including energy solutions and energy conservation projects. The company will set aside 1.1 trillion won for new and renewable energy projects, including photovoltaic power plants at schools and wind power projects, and it will pour 2.4 trillion won in new energy industry funds, electric vehicles, energy storage systems (ESS) and other new energy industry projects.
“Korea is in a better position for successfully tapping the EV market as it has already secured the three top industry prerequisites—information system, battery and quality electricity,” said President Cho, adding that Korea has to take strides in tapping new energy industries, including the EV industry, by making the most of the industrial triangle. He noted that KEPCO will pump-prime “the era of the EV” by aggressively investing in the EV charging infrastructure.
KEPCO, which attaches priority to the implementation of projects in Iran, is now studying a project to build an energy self-sufficient island, he said. “We’re considering a project to would turn Hormuz Island, which is in the Hormuz Strait, into an energy self-sufficient one, as is the case of Jeju Island,” Cho said. The scheme is designed to meet its own electricity demand using new and renewable energy sources, but emitting no greenhouse gases. Hormuz Island, home to 2,000 households, takes on geographical significance. KEPCO is now consulting with the Iranian side on a carbon-zero scheme based on photovoltaic power.
KEPCO is seeking to help Iran introduce a system of reducing power transmission losses, which stand at a staggering 18 percent, four times as much as Korea’s 3.7 percent. KEPCO is studying a model of recouping investments through the proceeds accruing in the course of reducing energy losses, he added.
Iran now wants to promote collaboration with KEPCO after drawing up a plan to raise the efficiency rate of old power plants with a combined capacity of 17,000MW from the current 33 percent to 50 percent.
KEPCO plans to inaugurate a branch in Iran, to form a consortium with other Korean public entities, private companies and research institutes and to conduct feasibility studies on several projects with the Iranian side.
The Korean power company is accelerating its efforts to expand overseas businesses not only in the conventional business fields, including mainstay thermal and nuclear power generation, but also in such new energy industries as new and renewable energy and ESS. KEPCO aims to chalk up 20 trillion won in overseas revenues by 2025, which will account for 20 percent of its total sales.
President Cho is to publish his own book, titled “I’m a Relief Pitcher of Losing Game” on April 30. The book carries tales about the KEPCO President, who has turned around the power company that was faced with the worst management crisis when he took office.
“Korea will be able to join the ranks of the Big League in the new energy industries if the nation’s leadership in the ICT field is converged with its strengths in efficiency and quality,” he said.
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KEPCO President Cho’s own book, titled “I’m a Relief Pitcher of Losing Game.”
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