BID, Early Renewable Energy Project Developers Focus on Permitting Tasks... "Company Size Is Not a Key Factor"

[Asia Economy Reporter Hyunseok Yoo] VIDI announced on the 23rd that there is no issue with the progress of the project as K-Palm Energy, which acquired the power generation business rights from Hyosung Energy, is a legitimate operator.

K-Palm Energy, which signed a contract modification related to the Asan fuel cell power generation project, is the initial operator of the project. The company explained that since the main task is obtaining permits for the power generation business, factors such as company capital and sales scale are not crucial for the project’s progress.

In renewable energy power generation projects, small-scale operators at the early stage complete a preliminary feasibility study on the project site, then submit a business plan including resident consent, required funds, and procurement methods to the Ministry of Trade, Industry and Energy to obtain a power generation business permit. After receiving the permit, environmental impact assessments and development activities are reviewed to obtain final approval.

Once the final approval is completed, project financing (PF) is carried out, during which a new special purpose company (SPC) is established to commence construction of the power generation project. This SPC will include future power generation subsidiaries, financial institutions, operators, construction companies, and VIDI.

A VIDI official stated, “Regarding the Asan fuel cell power generation project, VIDI signed a construction contract with K-Palm Energy, the initial operator,” and added, “Since K-Palm Energy’s main task is resolving civil complaints and obtaining permits necessary for the initial project progress, the company’s scale is not a significant factor in the project’s progress.”

He continued, “K-Palm Energy is a legitimate operator that acquired the business rights related to the Asan fuel cell power generation project from Hyosung Energy,” and added, “VIDI will proceed smoothly with the Asan fuel cell power generation project together with K-Palm Energy.”