Gyeongbuk Province, KHNP and Energy Agency Agreement
[Asia Economy Yeongnam Reporting Headquarters Reporter Koo Dae-seon] On the 14th, Gyeongbuk Province signed an investment agreement at the provincial office with Korea Hydro & Nuclear Power (hereinafter KHNP), the largest domestic energy public enterprise headquartered in Gyeongju, and the Korea Energy Agency to establish a ‘Gyeongbuk-type Eco-friendly Energy Industrial Complex to Overcome the Climate Crisis.’
This project is the largest public solar power investment project in Korea, where KHNP will invest up to KRW 4.25 trillion (KRW 1.7 billion/MW) in capital from 2023 to 2028 to install 2.5GW (about 1.8 times the capacity of the recently completed Uljin Shin-Hanul Nuclear Power Plant Unit 1 (1.4GW)) solar power facilities in industrial complexes within Gyeongbuk.
The project plans to install 2.5GW solar power facilities on idle spaces such as rooftops, which account for 30% of the industrial facility area (8,215 hectares) in Gyeongbuk industrial complexes, establishing a foundation for energy self-sufficiency. Construction management will be carried out with 100% participation from local companies.
It is expected not only to revitalize the stagnant local economy but also to greatly contribute to strengthening global export competitiveness by actively responding to Gyeongbuk-type low-carbon policies and climate change regulations for industrial complex business owners.
Through this agreement, KHNP will cooperate in promoting renewable energy projects, planning such as business proposals and briefings, selecting local construction companies, and implementing various support projects. The Korea Energy Agency will cooperate in providing low-interest loans, national subsidy information, and institutional improvements to promote and activate the dissemination of new and renewable energy.
In particular, various incentives for regional coexistence, such as installing worker rest facilities and energy diagnosis, will be provided to business owners participating in the project.
Gyeongbuk Province will support the smooth progress of the project and actively review the status and issues of industrial complex resident companies at each stage to further specify the solar power dissemination project model and improve solutions through promotion.
KHNP, headquartered in Gyeongju City, is the world’s leading energy company with assets of about KRW 65 trillion and produces 28.24% of Korea’s electricity (as of the end of 2021). It operates 25 nuclear power plants, 37 hydroelectric power plants, and 16 pumped-storage power plants, significantly contributing to the stability of Korea’s power supply.
Lee Sang-hoon, President of the Korea Energy Agency (left in the photo), Lee Cheol-woo, Governor of Gyeongbuk Province (center in the photo), and Hwang Ju-ho, President of Korea Hydro & Nuclear Power, are signing a memorandum of understanding for investment in the creation of an eco-friendly energy industrial complex.
The Korea Energy Agency, headquartered in Ulsan, is a public institution focusing on the dissemination and activation of new and renewable energy in response to climate change. Through continuous consultations, Gyeongbuk Province plans to maximize the synergy effect of the Gyeongbuk-type eco-friendly energy project and develop Gyeongbuk into an energy capital by expanding support for new and renewable energy.
Lee Cheol-woo, Governor of Gyeongbuk Province, evaluated, “With this large-scale investment, we will proactively respond to the carbon-neutral policies demanded by the international community, strengthen the global export competitiveness of local companies, and provide opportunities for local small and medium-sized enterprises in facility construction related to solar power projects, which will revitalize the local economy.”
The governor also said, “We will gradually expand the Gyeongbuk-type eco-friendly energy industrial complex to attract export companies that need eco-friendly energy to Gyeongbuk, making it a leading energy city. We will actively support creating a win-win cooperation model by brainstorming with the agreement institutions to find ways to contribute more socially to the region.”
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