(Third on the left) Brad Gagne plant manager, (Fourth from left) Cho Hwan-eik, KEPCO’s chief executive officer.
South Korea’s state-run Korea Electric Power Corp. (KEPCO) acquired a solar power plant in Colorado, making its first entry into the U.S. energy market.
The state utility firm said on Tuesday that it completed a deal with Cogentrix Solar Holdings LLD, a subsidiary of the world’s biggest asset management company Carlyle Group to buy a 30-megawatt solar power facility in Alamosa County, Colorado. The company did not reveal value of the deal.
KEPCO acquired a full stake in the power plant with a private equity fund named COPA Fund set up by local institutional investors including the National Pension Service (NPS). KEPCO is in charge of operation and maintenance of the facility.
The company expects the investment would generate $230 million in revenue during the business period of 25 years, as the electricity produced by the power plant will be entirely purchased by the Public Service Company of Colorado. KEPCO will also set up solar panels and energy storage system (ESS) by utilizing domestically-produced materials at idle sites around the solar facility, a plan expected to boost local exports by about 15 billion won ($13 million).
KEPCO plans to look for other business opportunities in the North American energy market in cooperation with domestic materials makers.
Shares of KEPCO closed Wednesday at 44,500 won, down 1.77 percent or 800 won from the previous session.
By Moon Ji-woong
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