Kepco will supply power on Guam in 25-year agreement

Korea Electric Power (Kepco) has signed an agreement to supply electricity on Guam for 25 years. According a Monday announcement, the deal will help secure a total of 2.3 trillion won ($1.97 billion) in revenue.

Kepco said the agreement, which was signed with the Guam Power Authority, will involve electricity generated at a 200-megawatt combined cycle gas turbine to be built by Hyundai Engineering in August next year. The plant is expected to go into commercial operation in October 2022.

The power plant will be located in Ukudo, in the northeast of the island, which is a U.S. territory 2,300 kilometers (1,429 miles) southeast of Seoul. According to the company, the plant will likely lower energy costs as it is a hybrid model that combines high-efficiency gas turbines with electricity storage systems.

“The power plant will also contribute to the steady supply of energy on Guam,” said Suh Keun-bae, head of Kepco’s overseas business development.

The company added that it is working to lower greenhouse gas emissions by increasing its business in natural-gas-fired power plants.

The power plant project including construction and parts supply from small- and medium-sized enterprises is expected to generate secondary economic activity of roughly 628.6 billion won.

Also on Guam, Kepco, through a consortium with LG CNS, won an order for a 60-megawatt solar power project in Mangilao. That project will secure total revenue amounting to 450 billion won for the next 25 years. The solar plant is scheduled for completion in April 2021.

With the combined cycle gas turbine plant, Kepco will control 55 percent Guam’s power generation capacity for the next 25 years.

Since participating in a power plant project in the Philippines in 1995, Kepco has been increasing its overseas projects. It currently has 42 projects in 26 countries including the United States, Middle East and Asia.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]