BDI Applies for Development Permit for 275.1 Billion KRW Gampo Wind Power Project

[Asia Economy Reporter Yoo Hyun-seok] VIDIA announced on the 25th that it has submitted a development activity application to Gyeongju City for the 275.1 billion KRW Gampho Wind Power Project (total generation capacity 92MW) being promoted in the Gampho-eup area of Gyeongju City. With the submission of the development activity application, which is the final stage of permits and approvals, the Gampho Wind Power Project is expected to begin full-scale construction in November this year.

The Gampho Wind Power Project obtained wind power business permission from the Ministry of Trade, Industry and Energy in November 2017, and in May 2018, the special purpose corporation (SPC) ‘Gampho Find Green Wind Power’ was established, marking the official start of the project. VIDIA not only participated as a strategic investor (SI) and contractor but also holds a certain stake in the SPC, allowing it to expect stable profits from electricity and renewable energy certificate (REC) sales for the next 20 years.

In April 2018, VIDIA signed a 275.1 billion KRW contract for the supply (installation) of wind power facilities including permits and approvals, design, wind turbines and related equipment, civil engineering works, and power transmission and distribution facilities for the Gampho Wind Power Project. Over the following three years, approximately 10 billion KRW was invested in preliminary services for construction commencement, such as wind condition data measurement, UL/DEWI certification services, resident acceptance enhancement and complaint handling services, power system permits and approvals services, site acquisition, and development activity permit services.

Once the development activity permit is obtained from Gyeongju City, Gampho Find Green Wind Power plans to form a new project consortium involving the power generation subsidiary, financial institutions, and the contractor (VIDIA) to secure project financing (PF). The power generation subsidiary has already submitted a capital commitment letter, and a project financing agreement with financial institutions has been concluded, making construction possible in November.

A VIDIA official said, “Last August, Gyeongsangbuk-do was selected in the energy industry convergence complex designation contest hosted by the Ministry of Trade, Industry and Energy, leading to active expansion of renewable energy generation and energy-related industries.” He added, “In particular, with the establishment of the East Coast Convergence Energy Cluster, plans are underway to designate the East Coast Wind Power Plant District and establish an energy industry convergence complex, which is expected to accelerate this project.”

He continued, “Gyeongju City is also very interested in expanding renewable energy generation, operating wind power facilities with a total generation capacity of 37.5MW in the Johangsan area.” He added, “Since this project is a resident participation type project where local residents participate and share profits with the power generation, it is expected that there will be no significant difficulties in obtaining permit approvals.”

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