Korea Electric Power Corp. (KEPCO) has won a 4.2 trillion won project to build and operate power transmission networks in the United Arab Emirates.
KEPCO’s winning of the UAE order will likely give the power company an upper hand in the upcoming power transmission network projects in Central and South America and Central Asia.
KEPCO said on Dec. 22 the power company was selected as the successful bidder of a project to build and operate high-voltage direct circuit undersea power transmission networks for the Abu Dhabi National Oil Company (ADNOC) and TAQA.
The project calls for the construction and operation of undersea HVDC transmission networks, extending 259 km in length, to supply power to two offshore crude oil facilities. It will cost 4.2 trillion won.
The location of the sites of undersea power transmission networks, to be implemented in the United Arab Emirates by KEPCO.
KEPCO is expected to earn revenues on a stable basis for 35 years as the power company will sign a long-term power transmission agreement.
Samsung C&T, with a track record of having implemented abundant diverse plant construction projects in the Middle East region, and Belgium’s Jan De Nul, a global top-tier company in the undersea cable construction sector, will be charged with the design and construction of undersea transmission networks.
KEPCO will be responsible for leading the overall process of the project and the operation and maintenance of the undersea power transmission networks.
Korea Eximbank will participate in a group of investors to finance the project. The initiative was designated a “promising project” in the Green New Deal sector by the Korean government, which announced K-New Deal globalization strategies in January 2021.
It takes on significance that KEPCO has created a win-win model in which the public and the private sectors have joined forces in maxing out the competitiveness of their bidding. KEPCO expressed hope additional projects will be implemented down the road.
KEPCO has been expanding the portion of renewable energies and power grid businesses in keeping with an energy paradigm shift coupled with carbon neutrality.
The project will be implemented under the UAE’s declaring of carbon neutrality, calling for reducing greenhouse gas emissions by more than 30 percent by replacing large-capacity power of offshore crude oil facilities with clean energies.
Meanwhile, KEPCO continues to strengthen its presence in the global business by signing long-term power sale deals on a continuous fashion.
KEPCO struck a power sale deal related to a 200MW-class gasification combined power project in Ukudu, Guam with Guam Power Authority (GPA) in November 2019.
At that time, KEPCO secured a combined 2.3 trillion won in revenues from selling power to GPA for 25 years under the BOT project.
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