[Click e-Stock] "Taihan Electric Wire Expected to Benefit from Offshore Wind Power Special Act"

On June 30, Research Alarm analyzed that Taihan Electric Wire is expected to benefit from the implementation of the Special Act on Power Grids and the Special Act on Offshore Wind Power.

Lee Seunghwan, a researcher at Research Alarm, stated, "According to the 11th Basic Plan for Electricity Supply and Demand announced in March this year, the government is making active efforts to strengthen the demand response market," and explained, "Expanding carbon-free power sources is essential to accommodate increasing electricity demand and to achieve carbon neutrality targets."

He added, "The actual effects of the legislation will become evident after the establishment of specific regulations," and emphasized, "The Special Act on Power Grids and the Special Act on Offshore Wind Power will have a direct impact on cable manufacturers."

He positively evaluated the Special Act on Power Grids, saying, "It is significant that the government will directly address grid construction issues that have been delayed due to local opposition," and stressed, "If the waiting time for grid connection is shortened, the entry of new power generation facilities will accelerate, leading to increased cable demand as projects expand."

He further predicted, "The Special Act on Offshore Wind Power will enable the government to support and resolve issues arising in the process of securing sites and increasing local residents' acceptance," and added, "As demand for submarine cables expands, cable manufacturers are likely to see increased orders and improved performance."

Lee analyzed, "The global submarine cable market is expected to grow from about 6 trillion won in 2022 to 28 trillion won by 2029," and explained, "To diversify its submarine cable products, Taihan Electric Wire decided in 2022 to build a factory in Dangjin." He added, "The total investment in submarine cable production facilities amounts to about 940 billion won, and after completion, total production capacity will increase more than fivefold compared to the existing level."