Korea South-East Power Signs Individual Rate Plan Contract with Korea Gas Corporation

Laying the Foundation for Eco-Friendly and High-Efficiency Power Generation Transition

On December 11, Korea South-East Power signed a power generation individual rate plan natural gas sales contract with Korea Gas Corporation at the Korea Gas Corporation headquarters in Daegu.

This contract was established to ensure a stable supply of fuel for the modernization project of the Bundang Combined Cycle Power Plant operated by Korea South-East Power.

Korea South-East Power Co., Ltd. Signs Individual Rate Plan Contract with Korea Gas Corporation.

The individual rate plan is a system in which rates are determined based on the contract conditions of the consumer, such as volume, duration, and supplier. Unlike the existing rate plan, which applies a uniform unit price, this contract links the introduction contract at a specific point in time to a specific power generator, allowing for advantageous pricing that reflects market conditions and supply-demand requirements.

Through this contract, Korea South-East Power will receive approximately 2.9 million cubic meters of natural gas from Korea Gas Corporation over a 10-year period, from 2027 to 2036.

The first block of the Bundang Combined Cycle Power Plant, completed in 1993, is currently undergoing a modernization project to replace aging facilities with high-efficiency equipment and transform it into an eco-friendly power plant. The Bundang Combined Cycle Power Plant is expected to reduce emissions of fine dust and environmental pollutants through facility upgrades, while the introduction of the individual rate plan will enable economical and stable power supply.

In particular, Korea South-East Power recently presented the "Energy New Road" as a blueprint for eco-friendly energy transition in line with the new government's policy direction. According to the Energy New Road, Korea South-East Power plans to achieve a total installed capacity of 24,000 MW by 2040 by restructuring its business portfolio around low-carbon and carbon-free power sources, including LNG. The signing of the individual rate plan contract, which will serve as a driving force for the Bundang Combined Cycle Power Plant modernization project, is part of the implementation of the Energy New Road.

Kang Kiyoon, CEO of Korea South-East Power, stated, "Through Energy New Road 2040, Korea South-East Power aims to shift from a business centered on conventional thermal power generation to eco-friendly energy, providing the public with sustainable and clean energy, while also taking the lead in revitalizing the local economy and creating jobs. I hope this contract will serve as a cornerstone for realizing the Energy New Road 2040 that we envision."