Korea Southern Power expands in overseas market

[THE INVESTOR] Korea Southern Power, one of Korea’s public energy companies, is gradually breaking into the overseas market with its innovative technology and know-how.

Late last month, KOSPO successfully carried out the first trial ignition in the Kelar gas power plant in Chile, where construction is still underway. The trial ignition, the first step after installing a gas turbine, is considered crucial as it indicates how a plant is well-connected. 

Since 2013, KOSPO has been building the Kelar gas power plant with a capacity of 517 megawatts in the port city of Mehillones in Antofagasta Province in northern Chile. This is the first time that a Korean power company has entered the Chilean power market. Previously, U.S. companies have dominated the Chilean power market.

With 98 percent of construction completed, the power plant is scheduled to officially start operating from October.

The generated power will be provided to an adjacent copper mine owned by Australian mine enterprise BHP Billiton, which requested the power plant construction.

Once operation starts, the power plant is projected to draw about 100 billion won ($86 million) of yearly profits through power sales for the next 30 years, the company said.

The establishment of the Kelar power plant was only possible upon the cooperation of Samsung Engineering, which managed construction, and Samsung C&T Corporation, which made the equity investment with Export-Import Bank of Korea’s support for project financing, it added.

“With the accumulated experiences and expertise in the industry, (KOSPO) will make sure of safety and build a quality power plant,” said KOSPO CEO Yoon Jong-geun.

In addition to the Kelar power plant, KOSPO has pushed to cultivate renewable energy in Jordan and Peru since last year.

The company is gearing up to build a wind power complex with a capacity of 49.5 megawatts in Tafila, 140 kilometers south of capital city Amman in Jordan. Tafila’s yearly wind speed is about 8 meters per second on average, it said.

About $190 million will be injected into the project, with the participation of the World Bank’s affiliate International Finance Corporation and Korean public organization Global Infra Fund.

In Mollendo, 1,200 kilometers south of Lima, Peru, KOSPO has also launched a trial run of a gas turbine power plant with 600 megawatts.

By Lee Hyun-jeong (rene@heraldcorp.com)