President Lyu Hyang-reol of Korea South-East Power Co. (KOEN).

Korea South-East Power Co. (KOEN) is accelerating efforts to localize parts, raw materials and equipment for power generation. KOEN became the first Korean power company to establish a large-sized R&D test-bed in the power generation field. The idea is to ease difficulties SMEs experience in the course of localization.

In order to build an R&D test-bed in the power generation sector, KOEN participated in a government energy technology development project in 2016.

The test-bed for localizing parts and raw materials and equipment for power generation was dedicated at the Yeongdong Eco Power Generation headquarters last July.

With the establishment of the test-bed for localization, KOEN will likely enable the localization of core parts for power generation facilities for which Korea has heavily depended on foreign imports and help SMEs nurture technology power corresponding to eco-friendly power technology introduction and changing trends.

KOEN’s test-bed consists of simulator/prior verification system for verifying technologies and verification testing equipment. It is capable of analyzing impacts into the existing power grid and effects.

For three years of test-bed construction, 19 items such as core parts for power generation, produced by SMEs, have been successfully tested under state test-bed projects. The items of 14 kinds included boiler tubes, corrosion resistant materials, and dust collection facilities.

KOEN is offering financial support of up to 100 million won to verify items produced by SMEs on their own. The power company plans to expand support connected clean thermal power.

KOEN said the operation of the test-bed will provide support for SMEs’ R&D, contributing not only to raise the localization portion of power generation facilities, depending heavily on foreign imports, but also to overcoming Japan’s export curbs on Korea.

A view of Korea South-East Power Co. headquarters in Jinju, Gyeongsangnam-do. (Photos: KOEN)

KOEN Devotes Itself To Exploring Business Opportunities Overseas

Under the stewardship of President Lyu Hyang-reol of Korea South-East Power Co. (KOEN), who took office in February 2018, KOEN is accelerating a scheme to bet big on renewable energy, new energy, and new business projects overseas.

KOEN President Lyu stressed the importance of change and a challenging spirit to brace for crises, saying that a company whose inside fails to catch up with the speed of outside environment would collapse.

The Korean power generation paradigm is shifting fast into LNG and renewable energies in the wake of the government’s energy policy of raising the portion of renewable energies out of the nation’s total power generation to 20 percent by 2030.

KOEN, which depends on coal for 90 percent of its conventional power plant portfolio, is entering crisis mode. KOEN’s Samcheonpo Thermal Power Units 1 & 2 are to be decommissioned this year, and Yeongdong Thermal Power Unit 2 is undergoing an energy conversion after being decommissioned.

In order to tide over this unprecedented crisis of the coal-fired power units, KOEN is making every effort to minimize the shock, caused by outside environment changes and reshape its corporate sustainability.