BDI Begins Construction of Renewable Energy Projects in Second Half... "This Year Will Be a Milestone for Performance"

[Asia Economy Reporter Jang Hyowon] Vidia announced on the 21st that full-scale construction will begin in the second half of this year, once the permitting and main equipment supply issues in the renewable energy business sector are resolved.

Until recently, Vidia's renewable energy projects have progressed slowly due to delays in individual power generation project permits and main equipment supply issues at power plants. With expectations that these administrative procedures and equipment procurement problems will be resolved in the second half of this year, the company plans to complete project preparation through Project Financing and commence full-scale construction.

Vidia is moving swiftly by signing business agreements with specialized companies to successfully carry out EPC (Engineering, Procurement, and Construction) in the renewable energy sector. In May of last year, it signed a business agreement related to wind power generation with Korea Marine Technology, and in October of the same year, it signed a Memorandum of Understanding (MOU) with the US company PureCell Energy (FEC) for the supply of main fuel cell equipment.

Additionally, Vidia is making aggressive investments such as acquiring equity stakes in early-stage power generation projects in the renewable energy business. Through this, it plans to create a stable revenue model not only from SMP (System Marginal Price) sales of the respective power plants but also from REC (Renewable Energy Certificate) sales in the future.

A Vidia representative stated, “As the international community accelerates its decarbonization efforts, South Korea will also see a significant expansion in investments in eco-friendly and renewable energy infrastructure starting this year. In line with these domestic and international energy trends, Vidia expects this year to be the first year of performance for its renewable energy business.”

He added, “The renewable energy business is expected to generate revenue within 2 to 3 months after construction begins through EPC work, leading to rapid performance improvement. Additionally, by concurrently making strategic investments such as acquiring power plant equity, once commercial operation starts, stable revenue from electricity and Renewable Energy Certificate (REC) sales is expected for 20 years.”

Vidia has been preparing eco-friendly and renewable energy businesses in line with the government’s nuclear phase-out and coal phase-out policies for about five years and is currently promoting fuel cell, onshore and offshore wind power, and solar power generation projects. Vidia’s current order backlog related to renewable energy projects amounts to a total of 1.43 trillion KRW, including ▲wind power generation 903.2 billion KRW ▲solar power generation 154 billion KRW ▲fuel cell power generation 324.6 billion KRW ▲waste solid fuel gasification power generation 50 billion KRW.

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