KOMIPO Lands $1 Bln Photovoltaic Power Plant Deal in U.S.

Power company teams up with POSCO Engineering on the construction, operation, and maintenance of a 300MW photovoltaic power plant in Nevada

Korea Midland Power Co. (KOMIPO) won a $1 billion contract to build and operate a 300MW photovoltaic power plant in Boulder City, Nevada. KOMIPO teamed up with POSCO Engineering to win the international bidding on the construction of a photovoltaic power plant on the site of Dry Lake Bed South.
A consortium, led by KOMIPO, was approved on Oct. 25 by Boulder City's council as the successful bidder of the project on a site covering roughly 6.3 square km in a desert area 25 km southeast of Las Vegas, which is emerging as one of the biggest photovoltaic power resources-rich areas in the United States. The consortium outbid seven other bidders, including Sempra Energy of the United States.
KOMIPO will be charged with financing the project and the operation and maintenance of the plant, while POSCO Engineering will be responsible for engineering, procurement, and construction (EPC). The deal calls for putting a photovoltaic power plant with a capacity of 300MW into commercial operation by June 2014. KOMIPO will be allowed to implement the operation & maintenance project of the plant for 50 years. The Korean power company will shoulder a 30 percent share of the cost in the project and POSCO Engineering will bear a 10 percent share while the remainder will be sold to strategic and financial investors. KOMIPO will recoup its investments in the project through the selling of electricity to some 80,500 households in the neighborhood area.
KOMIPO President Nam In-suk said, "I'm pleased with our entry into the U.S. photovoltaic market, which is forecast to achieve remarkable growth in the years to come, and this will serve as an opportunity for us to build a global management system for low-carbon, green growth." Nam said, "Refuse, being dumped or incinerated at waste treatment facilities, will be transformed into resources, so corporate occupants will be supplied with heat at cheaper prices, and we'll continue to expand the availability of such new and renewable energy as RDF in order to cope with climate change."
OVERSEAS EXPLORATION IN NEW & RENEWABLE ENERGY - KOMIPO President Nam said his company will redouble efforts to secure future growth engines.
In his New Year's message President Nam said, "We expect to create new revenue sources as we have laid the foundation for our entry not only into Indonesia but also into Africa by accelerating our bid to expand business portfolios abroad during last year." Looking back at last year's achievements, he said the launch of a project to build a replacement for Incheon Combined Cycle Power Unit No. 3 has paved the way for setting a milestone by "killing two birds (rabbits) with one stone ―stabilizing the power supply in the Seoul metropolitan area and maximizing the utilization of combined cycle power facilities."
The power company has also earned a reputation in the global market, breaking the boundary of the domestic new and renewable energy markets, as KOMIPO's diverse green energy development projects, including such Clean Development Mechanism (CDM) projects as the Wampu Hydro Electric Power Project in Indonesia and a bio-mass power project in Malaysia, are yielding tangible results.
However, he warned, the domestic business environment is expected to undergo tremendous changes compared to last year as KOMIPO has become one of the market-oriented public enterprises as part of the restructuring of the national power industry and an evaluation of management is set to be conducted by the government. Such negative things as post-financial crisis energy price hikes and employment woes still exist, which will be coupled with more pressure for greenhouse gas emissions reductions.
Explaining the tasks the power company will implement to raise its standing as a global concern and secure a competitive edge amidst a whirlpool of changes, Nam said KOMIPO will first strive to establish better communication channels.
Since he took the helm at the company, Nam stressed the importance of communication to make the companywide "3P" drive a success. At that time, the KOMIPO president said, "3P-2010 means that KOMIPO families need to work with a passion, a mission, and a pride in generating electricity and do their best in carrying out their duties like professionals. This is a win-win strategy for bringing maximum profits to the organization as well as individuals, and from now (2010), they will strive to translate each one into action and change by inches." He added, "The drive has paid off ―we have undergone changes in overall management by sharing management issues through clear communication with the people in the field and by fixing problems." nw

KOMIPO has been awarded with the contract to building a photovoltaic power plant on the site of Dray Lake Bed South in Boulder City, Nevada.
Photo on courtesy of KOMIPO