Agreement with Korea South-East Power Company
Establishing a 285MW-Class Combined Heat and Power Plant
Seoul Energy Corporation (President Hwang Boyeon) will partner with Korea South-East Power Company to complete the second phase of the Seonam District Energy Facility construction project by 2031.
On December 30, Seoul Energy Corporation signed a basic agreement with Korea South-East Power Company for the successful implementation of the second phase of the Seonam District Energy Facility project, the company announced on January 1.
The second phase of the Seonam District Energy Facility project is being promoted to meet the rapidly increasing heat demand in the Gangseo and Magok districts of Seoul. The project will establish a 285MW-class LNG combined heat and power plant, heat-only boilers, and thermal storage tanks to provide a stable heat supply system for the southwestern region.
The project will be carried out through a Special Purpose Company (SPC) led by Seoul Energy Corporation. Unlike the existing consortium model, this structure ensures that the corporation clearly maintains responsibility for heat supply and project leadership, while the power generation public enterprise participates as a joint investor, thereby institutionally securing both the stability and public nature of heat supply.
The basic agreement includes principles and implementation conditions for stable heat supply, such as joint equity investment in the SPC, conclusion of a shareholders' agreement, key terms of the heat supply and demand contract, and prioritizing the fulfillment of heat supply obligations.
Based on its top-tier expertise in operating combined heat and power facilities and solid financial soundness, Seoul Energy Corporation aims to establish a dedicated organization within the first half of this year.
Hwang Boyeon, President of Seoul Energy Corporation, stated, "We have established a project structure that prevents disputes in which power generators restrict heat supply depending on electricity market conditions, and that prioritizes stable heat supply to citizens. This agreement will serve as a crucial turning point in establishing a stable heat supply system for the Seonam region."
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