Southern Power-Katar Sujeonryeok Authority, Gas Combined Cycle & Desalination Plant Project
KEPCO, Consecutive Solar and Gas Combined Cycle Orders in Saudi Arabia and Guam
Western Power, UAE 1500MW Solar Project Groundbreaking
Domestic power companies are achieving consecutive successes in overseas power projects. Korea Southern Power signed a contract to supply electricity and desalinated water for 25 years, and Korea Electric Power Corporation (KEPCO) secured solar power projects in Saudi Arabia and Guam, USA, followed by two Saudi gas combined cycle power projects worth $3 billion.
On the 27th, Korea Southern Power announced that it recently signed a Power and Water Purchase Agreement (PWPA) with Qatar General Electricity and Water Corporation (Kahramaa) to supply electricity and desalinated water for 25 years through the gas combined cycle and desalination plant project (Facility E IWPP).
A representative from Korea Southern Power said, "This contract signing is an achievement about a month after winning the Qatar gas combined cycle and desalination plant project on the 16th of last month, marking Korea's first investment as an investor in Qatar's power projects." He explained, "It is a large-scale project with a total cost of $3.7 billion (approximately 5.2 trillion KRW) to construct and operate a 2.4GW gas combined cycle power plant and a desalination plant with a daily production capacity of 500,000 tons in the Ras Abu Fontas area of Doha, the capital of Qatar."
This project guarantees stable revenue through a 25-year power and water purchase agreement with Qatar General Electricity and Water Corporation during operation. It is significant in that domestic companies participate comprehensively in the Middle East market, which is the core market for power and desalination plants, not only in overseas construction design, procurement, and construction (EPC) but also in equity investment and financial support. Kim Joon-dong, President of Korea Southern Power, said, "Korea Southern Power has successfully secured a foothold in the Middle East by becoming the first Korean investor in the Qatar power and desalination plant market. By entering jointly with domestic construction companies, we will also contribute to pioneering and revitalizing overseas markets for Korean-made equipment." He added, "We will continue to expand our overseas energy territory through high-profit business development based on selection and concentration, actively supporting the competitiveness enhancement and overseas joint entry of excellent domestic small and medium-sized enterprises."
KEPCO has won three overseas projects this year alone in Saudi Arabia and Guam. A KEPCO official said, "We have been selected as the successful bidder for the construction and operation of the Luma 1 and Nairiya 1 gas combined cycle power plants, which were issued through an international tender by the Saudi Power Procurement Company (SPPC), and are about to sign a power sales contract." He added, "This is the third international tender project won this year, following the Sadawi solar power project ordered by SPPC and the energy storage system (ESS)-linked solar power project ordered by the Guam Power Authority."
The Saudi Luma 1 and Nairiya 1 projects involve constructing 1.9GW combined cycle power plants each by 2028 and selling all the electricity produced over the next 25 years to the Saudi Power Procurement Company. This is the largest power project since the Barakah nuclear power project. KEPCO expects about 4 trillion KRW (approximately $3 billion) in overseas sales from these two projects. Doosan Enerbility is participating in the power plant construction, expecting about 2 trillion KRW in overseas joint exports.
Building on these consecutive contract wins, KEPCO plans to accelerate its entry into the Middle East market, where many projects in gas combined cycle, renewable energy, grid, and ESS are expected to be continuously issued, seeking new revenue streams and continuously expanding its role as a global energy leader.
On the 19th (local time), Korea Western Power broke ground on the 1.5GW Azban solar power project in the United Arab Emirates (UAE). The Azban project is a renewable energy power construction project investing over 1 trillion KRW to build a solar power plant by the second half of 2026 on a site 70 km east of Abu Dhabi. It is the largest solar power project in terms of both capacity and project cost among those won by Korean companies so far.
Lee Jung-bok, President of Korea Western Power, said, "The Azban solar power project is a great opportunity to demonstrate Korea's excellent technology and competitiveness in the Middle East region." He emphasized, "We will closely cooperate with EDF Renewables to secure additional renewable energy projects in the Middle East in the future."
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