Korea Midland Power Co., Ltd. is making impressive headway in its energy projects abroad. The top-tier energy company is stepping up its efforts to reinforce its competitive strengths in overseas power projects. Indeed, KOMIPO is the first Korean power company to go abroad. As such, it has been long lauded for its exceptional power generating capacity and skilled manpower which have enabled the company to score successes abroad.
Korea Midland Power built and operates Indonesia's 660-MW Cirebon Coal-Fired Power Plant, while undertaking the O&M (operation and maintenance) of 1,320-MW Tanjung Jati Coal-Fired Power Plant of also Indonesia. In addition, KOMIPO operates Thailand's 110-MW Navanakorn Combined Cycle Power Plant.
The Cirebon Coal-Fired Power Plant is often cited as an example of Korea's successful power generating projects abroad. The power plant, which began commercial operation in October 2012, was jointly launched by KOMIPO, Japan's Marubeni Corporation and Indonesia's IndyCar.
Notably, KOMIPO was the first Korean power company to win the thermal power plant project through open bidding. KOMIPO, which already operates two 660-MW-class thermal power plants in Tanjung Jati, will see its international reputation enhanced with the Cirebon Project which is set to supply electricity to 9% of residents of Java Island, who have been experiencing an acute shortage of electricity.
In 2014, the Cirebon Project recorded 20.3 billion won of net profit. The power plant is expected to generate 20 billion won of operating revenues every year during the next 30 years, totaling 600 billion won in three decades. The company recorded 254 million won of net profit in its overseas power projects last year.
KOMIPO's outstanding performance in projects abroad is also evident in the new & renewable energy field. Construction of the 45-MW Wampu Hydropower Plant in Indonesia has been under way, while construction work on the Semangka Hydropower Plant was to begin soon, with its financing plan finalized.
KOMIPO is also prepared to build a 300-MW photovoltaic(PV) power plant in Boulder City, Nevada, USA, in a partnership with Sunpower, a leading U.S. new & renewable energy firm. A PPA (Power Purchase Agreement) is expected to be concluded at an early date. KOMIPO is set to undertake implementation of the overall project, including the financing and O&M (Operation & Maintenance), while POSCO Engineering will handle EPC (Engineering, Procurement & Construction).
KOMIPO will invest 30% of the equity from its own capital, while POSCO Engineering will make a 10% equity investment with the remaining 60% equity to be funded by strategic and financial investors. After completion of the project, KOMIPO plans to recover its invested funds from sale of electricity to about 80,500 households neighboring the plant.
A senior KOMIPO official said, ?e are very pleased to advance into the U.S. market, where huge growth is expected in the PV field in the future, and build an ultra-large PV power generation site there.?He added, "With this project as momentum, KOMIPO will make steady efforts to establish a global management system for low-carbon, green growth."
Details of Major Overseas Projects
○Indonesia's Cirebon Coal-Fired Power Plant(660MW, in service)
-Project period: Apr. 2008--Aug.2041(30 years after dedication )
-Total investment: US$8.5 (KOMIPO's stake: 27.5%
-Project characteristics: First overseas project clinched in international competitive bidding
○Indonesia's Tanjung Jati Coal-Fired Power Plant (O&M) (1,320MW, in service)
-Project period: Jul. 2010?Mar., 2032 (20 years after dedication)
-Investment:US$400 mil. (KOMIPO’s stake: 51%)
-Project characteristics: Indonesia’s best coal-fired power plant in terms of operating rate & forced outage rate)
○ Thailand's Navanakorn Combined Cycle Power Plant (110MW, in service)
-Project period: Oct. 2013--Oct. 2038 (25 years after dedication)
-Total investment: KRW210 billion (KOMIPO's stake: 29%)
-Project characteristics: Promotion of power-generating equipment exports in partnerships with Korean enterprises
○ Indonesia's Wampu Hydropower Plant(45MW, under construction)
-Project period: Dec. 2009--Jan. 2045 (3o years after dedication)
-Total investment: US$174 mil. (KOMIPO's stake: 46%)
-Project characteristics: KOMIPO's first overseas hydropower plant project which it has secured on its own right.
Status of New Development Projects
○ Second Cirebon Coal-Fired Power Plant(1,000MW)
-Project period: 2019--2044(25 years after dedication)
-Total investment: US$2.2 billion (KOMIPO's stake: 10%)
-Project process: PPA concluded/BVGL issued in Jul. 2015; financing deal due to be finalized by Feb. 2016.
○Boulder City (Nevada, USA) Photovoltaic(PV) Power Plant(200MW)
-Investment: KOMIPO's stake: 20%; Project partners: 80%
-Project cost: US$500 mil./Selected as a preferred negotiating partner for PPA (Apr. 2015)
KOMIPO Steps Up CSR Activities as a Global Energy Corporation
Korea Midland Power Co., Ltd. has been active in the execution of its corporate social responsibilities overseas in parallel with the launch of power projects abroad. KOMIPO’s social contribution activities include construction of schools, small hydropower plants and donation of Korean-language books.
After launching projects in Indonesia, KOMIPO decided to improve the country’s educational environment through the construction of elementary schools. Jointly with Plan Korea, KOMIPO proceeded with an elementary school construction project in the Grobogan region of Java Island in the form of a public private partnership (PPP). The dedication ceremony for the first KOMIPO Elementary School was held on November 22, 2012.
Designed to nurture human abilities and enhance the value of the Indonesian people, the new KOMIPO school is equipped with modern conveniences and facilities to provide not only a conducive educational environment but also a source of clean water and sanitation for the surrounding community.
KOMIPO President and CEO Choi Pyeong-Rak, in his congratulatory remarks at the dedication ceremony, said, "I hope that this school project generates dreams and a brighter future for Indonesia while at the same time providing momentum to reinforce the heart-to-heart friendship and reliability between KOMIPO and the Indonesian people.”
In March 2013, KOMIPO completed the second KOMIPO School and a kindergarten, also in the Grobogan region, in cooperation with Plan Korea. KOMIPO's voluntary workers participated in the dedication ceremony, organized a mini Olympics for local students and hosted an Indonesian traditional play-sharing and cultural exchange event.
In cooperation with Good Neighbors and KOICA, KOMIPO built the third KOMIPO School near Jakarta, Indonesia, at the end of 2013. KOMIPO mobilized 400 million won out of the total construction cost of 810 million won. A solar power generator was installed at the school.
Small Hydropower Plant
In an effort to promote the energy self-reliance for low-income people of Indonesia, KOMIPO is moving ahead with the construction of small hydropower plants in joint equity investment with KOICA and IBEKA, an Indonesian NGO. The revenues from the operation of the power plants will be made available to fund electricity, education, medical care programs, construction of infrastructure and water supply for regional communities.
The first small hydropower plan was built at a remote village with 350 residents who had been without electricity in January 2014. Some 15 million won earned from the operation of the hydropower plant was made available to improve the living standards, medical care and housing of residents near the facility. Meanwhile, a solar street lighting system was installed in January 2014 in partnership with KOICA and Plan Korea.