Seoul Energy Corporation Invests 700 Billion Won to Establish Heat Supply System in Southwestern Seoul Including Magok

Phase 2 Construction of Seonam District Energy Facility
Korea South-East Power Selected as Preferred Bidder

Seoul Energy Corporation (President Hwang Boyeon) is moving forward with the “Phase 2 Construction Project of the Seonam District Energy Facility” to establish a stable heat supply system in the southwestern region of Seoul. On November 3, the corporation announced that it had selected Korea South-East Power as the preferred bidder and would accelerate the project.

Bird's-eye view of the Seonam District Energy Facility. Provided by Seoul Energy Corporation.

At the proposal evaluation meeting held at the Yangcheon-gu headquarters on October 30, Korea South-East Power was chosen as the top candidate after a comprehensive review of technical capabilities, financial soundness, project management competency, and operational plans. The evaluation committee ensured fairness by using the average score, excluding the highest and lowest marks.

Korea South-East Power, the preferred bidder, operates seven power generation headquarters, including Yeongheung, Samcheonpo, and Bundang, and is a public power generation company managing over 5,000MW of renewable energy facilities.

The corporation plans to negotiate with the top-ranked bidder for about 20 days, and if necessary, proceed with negotiations with the next candidate, Korea Western Power. President Hwang Boyeon emphasized, “The swift execution of this project is the top priority to ensure a stable heat supply for residents in the southwestern region.”

This large-scale energy infrastructure project, with a total investment of 700 billion won, will establish facilities with a capacity of 285MW of electricity and 258Gcal/h of heat in the Magok Urban Development Zone in Gangseo-gu, supplying district heating to approximately 74,000 households and 428 buildings.

Through this project, the corporation aims to meet the increasing heat demand in the Magok area by 2031 and strengthen the foundation for carbon-neutral energy supply. By the first half of next year, the corporation plans to establish a special purpose company (SPC) among public institutions, and in the second half, place orders for gas turbines and select construction companies before commencing construction.

President Hwang stated, “Selecting the preferred bidder for the SPC marks a turning point in resolving heat supply instability in the southwestern region,” adding, “The corporation will take the lead in realizing a carbon-neutral energy city that citizens can truly experience.”