The Seoul Metropolitan Government has signed an MOU with Korea Hydro & Nuclear Power Co., Ltd. (KHNP), the largest power company in the country, to make an investment worth KRW 790 billion in new and renewable energy.
Seoul City and KHNP reached a consensus to the effect that the development and distribution of new and renewable energy is crucial to solving imminent energy problems and agreed to join forces to expand the facilities for distributed power supply in the Seoul area.
The agreement with KHNP is the largest deal that the city of Seoul has ever executed with a private or public corporation to expand the production of new and renewable energy.
Whereas the city’s previous new and renewable energy agreements were centered on the installation of solar panels, the latest MOU with KHNP is designed to boost the installation of production facilities for new and renewable energy in the small hydropower and hydrogen fuel cell sectors.
Based on the agreement, KHNP will invest a total of KRW 790 billion in the development and installation of new and renewable energy facilities including fuel cells and solar power and small hydropower facilities for the city’s public institutions, such as depots and water recovery centers, by 2015. It is expected that the new environmentally-friendly energy production facilities will generate 160MW of power, which is equivalent to the annual electrical power consumption of 264,000 households in Seoul.
In terms of investment areas, KHNP will invest KRW 600 billion in fuel cells capable of producing 120MW of energy; KRW 90 billion in solar panels for 30MH of power; and KRW 100 billion in small hydropower for 10MW of electricity. KHNP also plans to install cutting-edge facilities as well as establishing an exemplary model of new and renewable energy production facilities for the rest of the country based on the development of new, high energy-efficient facilities.
In the meantime, the city of Seoul is planning to sharply increase its electricity self-reliance rate from 2.8% in 2011 to 8% in 2014, largely by increasing its investment in the development of environmentally-friendly technologies and by applying them to municipal spaces and facilities.