KEPCO Shortlisted for $2.16 Billion Saudi Renewable Energy Projects

SEOUL: The Korea Electric Power Corp. (KEPCO), a state-run company, has been shortlisted for significant renewable energy projects in Saudi Arabia, valued at approximately 3 trillion won (US$2.16 billion), according to an announcement from Saudi Arabia's energy procurement agency. According to Yonhap News Agency, the Saudi Power Procurement Company (SPPC) revealed that KEPCO is one of the selected bidders for three of the four solar projects under the National Renewable Energy Program. A KEPCO official confirmed the company's intentions to participate, though they emphasized a cautious approach as conditions for each project differ. The projects are structured under build-own-operate contracts, with a 25-year power purchase agreement to be established between each participant and Saudi Arabia, stated the SPPC. This opportunity arises as KEPCO aims to enhance its financial stability, having struggled to adjust electricity rates to sufficiently offset high fuel costs and inflation during the COVID-19 pandemic . As of June, KEPCO's debt reached 202.9 trillion won, marking an increase of 440 billion won since the end of 2023. A survey by Yonhap Infomax, the financial division of Yonhap News Agency, projected KEPCO's third-quarter operating profit at 3.1 trillion won, a 57.4 percent rise from the previous year's 1.99 trillion won, signifying the highest operating income in nearly three years. The optimistic forecast follows KEPCO's recent decision to raise electricity rates for industrial users while maintaining household rates, a measure aimed at alleviating its financial challenges. The company has also suggested the possibility of further rate hikes in the coming year, potentially impacting household rates. During a recent parliamentary audit, Industry Minister Ahn Duk-geun indicated that KEPCO is "in the process of gradually normalizing overall electricity rates."