Collaboration with Domestic Companies Including GIS and Transformers
The Korea Electric Power Corporation (KEPCO) consortium's winning bid for a wind power project in Saudi Arabia is expected to be a positive development for domestic power equipment companies.
On October 27 (local time), Saudi Arabia's state-run SPA news agency reported that a consortium including KEPCO had secured a contract for a renewable energy project in Saudi Arabia. According to the report, the Saudi Power Procurement Company (SPPC) awarded five new wind and solar projects on the same day, with a total generation capacity of 4,500 megawatts (MW) and an investment of 9 billion riyals (approximately 3.4 trillion won).
Among these, the 1,500 MW Dawadmi wind power project, planned for the capital city of Riyadh, was awarded to a consortium comprising KEPCO and Saudi renewable energy company Nesma, among others. The Dawadmi wind power plant will be constructed 247 kilometers west of Riyadh. The total project cost amounts to 892 million dollars (about 1.2 trillion won).
Within the KEPCO consortium, KEPCO holds the largest stake at 40.01%, followed by Etihad Water and Electricity (EtihadWE) with 39.99%, and Nesma with 20%. The KEPCO consortium proposed a levelized cost of electricity (LCOE) of 1.33803 cents per kilowatt-hour (kWh) to Saudi Arabia. SPA noted that this set a new world record for the lowest LCOE in wind power generation.
The KEPCO consortium will sell the electricity generated from the wind power plant to the Saudi Power Procurement Company under a power purchase agreement (PPA) for 25 years.
The KEPCO consortium's success in securing the Dawadmi wind power project in Saudi Arabia is expected to lead to participation from domestic companies. A KEPCO official stated, "Korean wind power supply chain equipment companies will not participate in this project," adding, "However, we plan to collaborate with two or three domestic power equipment companies, including those specializing in gas-insulated switchgear (GIS) and transformers."
Meanwhile, on the same day, the remaining renewable energy projects were each awarded to Masdar of the United Arab Emirates (UAE), Electricite de France (EDF), and French company TotalEnergies.
Moon Sin-hak, Vice Minister of the Ministry of Trade, Industry and Energy, is shaking hands with Abdullah bin Ali Alahmari, Vice Minister of Industry and Mineral Resources of Saudi Arabia, at the Government Seoul Office in Jongno-gu, Seoul on October 27, 2025. Photo by Yonhap News Agency
Previously, the Ministry of Trade, Industry and Energy announced that Vice Minister Moon Sinhak had held talks with Abdullah bin Ali Alahmari, Vice Minister of Industry and Mineral Resources of Saudi Arabia, at the Government Seoul Office, discussing ways to enhance industrial cooperation between the two countries.
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