Korea Southern Power Signs PF Deal for Yeonggwang Yawol Offshore Wind Project; First Use of Doosan's 8-MW Turbines

A bird's-eye view of the Yeonggwang Yawol Offshore Wind Farm. Korea Southern Power

Korea Southern Power Co., Ltd. announced on Nov. 3 that it had successfully signed project financing (PF) agreements for the Yeonggwang Yawol Offshore Wind Power Project on Oct. 27.

With Yawol Offshore Wind securing financing, it is expected to proceed with signing supply contracts with supply chain companies. The project involves building and operating a 104-megawatt (MW) offshore wind farm in waters off Yeonggwang County, South Jeolla Province. It will be the first project to use 13 8-MW offshore wind turbines developed by Doosan Enerbility.

Industrial Bank of Korea, Hana Bank and Korea Development Bank participated in the financing agreement as lead arrangers, while funds established by Mirae Asset Global Investments and Energy Infrastructure Asset Management joined as shareholders. The project was also selected for investment under the Advanced Strategic Industries Fund of the National Growth Fund.

Since the government introduced its competitive bidding system for fixed-price wind power contracts in 2022, Yawol Offshore Wind has been the first offshore wind project awarded using domestic turbines. It is expected to contribute to strengthening energy security by helping commercialize domestically produced turbines.

Korea Southern Power is expected to carry out the operation and maintenance (O&M) of Yawol Offshore Wind, while Doosan Enerbility will handle the engineering, procurement and construction (EPC) for the overall development of the wind farm, including the supply of 8-MW offshore wind turbines.

Korea Southern Power said, "By stipulating in the contract the transition of personnel from the country's first coal-fired power plant to be shut down into the offshore wind sector, we are taking the lead in responding to the government's energy transition."

Korea Southern Power President Kim Jundong said, "This financing agreement is significant because it enhances the project's public value and combines renewable energy financing support with the National Growth Fund. We will work to complete the project on schedule, continue expanding renewable energy supply and actively contribute to the growth of the domestic offshore wind supply chain."

This content was produced with the assistance of AI translation services.