KEPCO Secures $500 Million Project Finance for Renewable Power Project in Guam, U.S.

Korea Electric Power Corporation (KEPCO) announced on the 3rd that it has successfully signed a project finance (PF) agreement worth about $500 million (approximately 700 billion won) for a solar power and energy storage system (ESS)–linked renewable energy project underway in cooperation with Korean companies in Guam, United States.
The PF deal was structured so that funds are raised based on the business performance of the local project company and its long-term power purchase agreement (PPA), without any repayment guarantee from the parent company. This is significant because it was concluded under heightened volatility in global financial markets, with the Export-Import Bank of Korea (KEXIM) leading a syndicate that includes international commercial banks to secure financing on competitive terms.
The project was commissioned by the Guam Power Authority and aims to provide a stable supply of clean power by installing 132 MW of solar facilities and an 84 MW / 325 MWh ESS in the Yona area of Guam.
Once completed, the project is expected to supply about 222 GWh of electricity annually, enough to meet the yearly power demand of roughly 20,000 households in Guam. The generation capacity of facilities led by KEPCO in Guam will increase from the current 258 MW to 390 MW, equivalent to about 55% of Guam’s total generation capacity of 708 MW. This is expected to further solidify KEPCO’s position as a key power provider in the region.
In particular, the project has been structured so that Korean companies participate across the entire value chain, from equity investment to engineering, procurement and construction (EPC), as well as operation and maintenance (O&M). This model is being recognized as a representative example of a successful "Team Korea" collaboration in the renewable power sector, and it is seen as laying important groundwork for winning similar power projects in the North American market.
Kim Dong-cheol stated, "This PF agreement is a meaningful achievement that proves KEPCO’s capabilities in overseas business and risk management, as we secured funding in the global financial market based on the project’s performance and credibility without a parent company guarantee." He added, "We will continue to expand the 'Team Korea' power project model in overseas markets, focusing on new energy businesses such as solar power and ESS."
leeyb@fnnews.com Lee Yu-beom Reporter