"Daemyung Energy, Korea's No.1 Private Wind Power Company, The Secret Behind Nonstop Turbine Operation [Company Exploration]"

Daemyung Energy's Yeongam Wind Power and Yeongam Solar Power located on Hwalseongsan in Yeongam-gun, Jeollanam-do.
Photo by Jang Hyowon

[Asia Economy Reporter Jang Hyowon] #Following the mountain trail of Hwalseongsan in Yeongam-gun, Jeollanam-do for about 10 minutes, you can see the distant Yeongsangang riverside and a vast pastureland. This area, which used to be a ranch, now hosts 20 wind turbines with tower heights reaching 80 meters on a 600,000-pyeong site. Solar panels have also been installed on the vacant land around the turbines. The cool wind and the hot sun are both reborn as electricity at Daemyung Energy’s Yeongam Power Plant.

When the reporter visited on the 5th, the weather was clear and calm, but all 20 wind turbines were running continuously without rest. The reason all turbines could operate simultaneously is thanks to Daemyung Energy’s unique data-based ‘micrositing’ technology.

Before installing the power plant, Daemyung Energy analyzes wind conditions through wind measurement to determine the speed and direction of winds and which terrain they blow most frequently. They also select locations to prevent turbulence generated behind turbines from affecting others and install turbines in optimal spots.

Wind measurement meteorological tower at Yeongam Wind Power Plant. / Photo by Jang Hyowon

If this technology is not applied, turbines may not receive wind properly, reducing efficiency. In fact, among six turbines installed at other wind power plants visible from Yeongam Power Plant, four were not operating simultaneously like those at Yeongam.

Daemyung Energy’s micrositing technology is a key know-how that increases the utilization rate of Yeongam Power Plant. Utilization rate refers to the actual power generated relative to the installed capacity. The utilization rate of Yeongam Wind Power is about 21%, which is much higher than the average utilization rate of 17.4% for wind power plants in Jeollanam-do. The approximately 3.6 percentage point difference in utilization rate means about 20% higher sales compared to other power plants.

Yeongam Wind Power can produce 2 MW of electricity per hour per installed turbine based on rated output. Applying the utilization rate, the total annual power generation is about 74,000 MWh, enough to supply electricity for 20,000 households with four members each for one year.

Based on its outstanding technology, Daemyung Energy holds the number one market share in the domestic private wind power generation business. It is expected to secure about twice the market share compared to other companies once the currently under-construction Geumseongsan Wind Power (51.7 MW) and Wondong Wind Power (37.6 MW) are completed.

Sales from Yeongam Wind Power are expected to be reflected in Daemyung Energy’s consolidated results starting this year. On the 1st of last month, Daemyung Energy acquired 100% of Yeongam Wind Power’s shares for 27.9 billion KRW through its subsidiary Zephyros Energy. Yeongam Wind Power recorded sales of 12.4 billion KRW and net profit of 2.7 billion KRW last year.

Solar power panels are installed on the remaining land of Yeongam Wind Power. The solar power is operated by Yeongam Solar Power, in which Daemyung Energy holds an 81% stake. This facility can produce 94 MW of electricity per hour. Annual sales amount to 35 billion KRW, and Daemyung Energy reflects net profit proportional to its shareholding in its performance. As of last year, about 4.6 billion KRW of net profit was included in Daemyung Energy’s results.

Power storage facility of Yeongam Power Plant.
Photo by Jang Hyowon

Yeongam Power Plant serves as a stepping stone for Daemyung Energy’s future business. Noh Gwangcheol, CFO of Daemyung Energy, said, “We are planning a green hydrogen business through Yeongam Wind Power,” adding, “By participating in government projects, we aim to build a green hydrogen app at existing power plants and lead the green hydrogen fuel cell business linked with renewable energy sources owned by Daemyung Energy.”

Additionally, Daemyung Energy plans to acquire operation and management (O&M) companies and power plants to enter the virtual power plant (VPP) business utilizing its renewable energy resources. The plan is to connect the largest power plants in Korea on Daemyung Energy’s platform.

As a new business, Daemyung Energy intends to expand the O&M and power generation sectors, which have higher profit margins than the existing EPC (engineering, procurement, and construction) business. Last year’s sales composition was 86.5% EPC, 5.87% O&M, and 7.4% power generation, while net profit composition was 43.3% EPC, 20.3% O&M, and 36.4% power generation.

Furthermore, Daemyung Energy is stepping into the offshore wind power market, a global trend. CFO Noh said, “Since last year, we have been conducting projects in Gae Offshore Wind Power and Dado Offshore Wind Power,” and added, “We plan to actively enter the offshore wind power business by applying our onshore wind power plant know-how.”