KEPCO shortlisted for Saudi Arabia's solar energy projects

Korea Electric Power Corp. (KEPCO), the South Korean state-run utility company, was shortlisted as a final candidate for renewable energy projects in Saudi Arabia, with a total project cost of around 3 trillion won ($2.2 billion).

According to the power industry, on Monday, KEPCO became a final candidate for three out of four solar projects under the Fifth National Renewable Energy Program (NREP), announced by the Saudi Power Procurement Company (SPPC).

The four Saudi solar projects are as follows: Al Sadawi (2,000 megawatts), Al Masa (1,000 MW), Al Henakiyah 2 (400 MW) and Rabigh 2 (300 MW).

The total project cost is about 3.3 trillion won ($2.4 billion), and it will follow the BOO (build-own-operate) model, which includes construction and operational responsibilities.

If awarded, KEPCO would enter into a 25-year power purchase agreement with SPPC for each project.

KEPCO has been shortlisted for the Al Sadawi, Al Henakiyah 2, and Rabigh 2 projects. If KEPCO secures the contract, it will operate its first solar power project in the Middle East.

“We are working to participate in the project," a KEPCO source said.

"The conditions for the three projects differ, so the final contract outcome and scale will be determined later.”

Write to Yeong-Hyo Jeong at hugh@hankyung.com