KEPCO Plant Service & Engineering Acquires Stake in Indonesian Hydroelectric Plant, Securing Its First Overseas Renewable Energy Generation Asset

[Financial News, Naju—Hwang Tae-jong] KEPCO Plant Service & Engineering, a company specializing in power equipment maintenance, has secured its first overseas renewable energy generation asset by acquiring a stake in a hydroelectric plant in Indonesia.
On the 23rd, KEPCO Plant Service & Engineering said it had signed a contract the previous day with LX International to acquire a partial stake in PT. BNE, the company operating the Hasang hydroelectric plant in North Sumatra, Indonesia.
LX International held a 95% stake in PT. BNE, while Indonesia's Epsindo Jaya Pratama held the remaining 5%. KEPCO Plant Service & Engineering acquired a 35% stake from LX International and all of Epsindo Jaya Pratama's stake, securing a 40% stake in total.
LX International will retain its position as the largest shareholder with a 60% stake and continue operating the business under a joint-shareholder structure with KEPCO Plant Service & Engineering.
Kim Hong-yeon, president of KEPCO Plant Service & Engineering, said the deal was significant, stating, "As KEPCO Plant Service & Engineering's first equity investment in an overseas hydroelectric project, this will mark a turning point in connecting our maintenance expertise to asset operation."
The Hasang hydroelectric plant has an installed capacity of 41 megawatts (MW) and has steadily produced and supplied carbon-free electricity to local communities since beginning commercial operations in 2020. As an operating asset with an established track record, it was seen as having an advantage in terms of investment stability.
Moreover, in January this year, the Hasang plant was approved by Indonesia's Ministry of Environment as a carbon-reduction project under Article 6.4 of the Paris Agreement. It is regarded as the first case in which the Indonesian government officially approved a domestic project under the framework since the Paris Agreement took effect.
Through the deal, KEPCO Plant Service & Engineering has secured its first overseas renewable energy generation asset. It has also obtained carbon credits, marking progress in diversifying and expanding its global business operations.
The equity investment is also expected to generate significant synergies by combining the capabilities KEPCO Plant Service & Engineering has built through power plant operations and maintenance (O&M) projects in around 25 countries worldwide over more than 30 years with LX International's global business development capabilities and experience operating energy businesses locally.
Alongside its equity investment, KEPCO Plant Service & Engineering plans to perform O&M services at the plant, laying the foundation for long-term cash flow beyond short-term construction revenue.
Building on this cooperation, the company also plans to work with LX International to pursue additional investments in overseas renewable energy projects, win O&M contracts, and develop businesses linked to carbon credits.
Kim Hong-yeon said, "We will use our cooperation with LX International as a springboard to build a foundation for sustainable growth in the overseas renewable energy market."

[email protected] Hwang Tae-jong Reporter