President Chung Chang-kil of Korea Midland Power Co. (KOMIPO) was selected as one of the 33 winners of the 2017 Korea Global Leaders awards. An awards ceremony took place at Millennium Hilton Hotel on May 12 under the sponsorship of the Ministry of Trade, Industry and Energy, the Korea Chamber of Commerce and Industry, the Korea International Trade Association and the Korea Commission for Corporate Partnership.
KOMIPO made remarkable achievements in terms of business performance and safety in 2016. A government survey of business performance conducted last year showed that the power company earned a B grade, two notches higher than the previous year, and it ranked No. 1 in an evaluation of integrity conducted by the Anti-Corruption & Civil Rights Commission (ACRC). At the same time, Boryung Thermal Power Unit 3 logged 6,000 days in operation without any glitches, the longest-ever record in the world. Seoul Thermal Power Plant has renewed the nation’s longest record on operation without an industrial disaster accident for 35 years and 10 months.
KOMIPO implemented four power plant projects with a combined power generation capacity of 4,040MW this year, the largest among power companies in Korea. They are Seoul Combined Power Plant, Shin Boryung Thermal Power Plant, Shin Seocheon Thermal Power, and Jeju LNG Combined Cycle Power projects. The Seoul Combined Power Plant project calls for building a multi-purpose space on the site of the Seoul Thermal Power Complex in Seoul, the nation’s first coal-fired power unit.
KOMIPO is accelerating efforts to explore future new growth engines. The power company has set aside 341.2 billion won this year, a 57 percent surge over last year, to invest in new energy industries, including photovoltaic power, wind power and energy storage systems. On top of the conventional thermal power business, KOMIPO chalked up 25 billion won in net profit by concentrating on the developing of new and renewable energies, and the power company is devoting itself to making a joint overseas market foray with other Korean companies. KOMIPO is the first Korean power company to hit the overseas power market.
K-water Teams Up with KOMIPO to Cooperate in Development of Renewable Energy
Korea Water Resources Corp. (K-water) and KOMIPO have joined forces to expand the supply of new and renewable energies. K-water and KOMIPO signed a deal to cooperate in the development of new and renewable energies at the K-water headquarters in Daejeon on April 12. The agreement calls for cooperation in the development of photovoltaic power energies on water surfaces for dams, creating funds for joint investments into water photovoltaic power energies, and transacting renewable energy certificates (RECs) through the joint development of new and renewable energies.
RECs are issued by the government in generating new and renewable energies.
The production of 1MW of renewable energy is equivalent to 1REC.
The transaction of RECs is beneficial to power companies like KOMIPO and K-water. In the case that KOMIPO fails to meet renewable portfolio standards (RPS), the power company can purchase RECs from K-water to make up for a shortage of renewables. The RPS system went into force in 2012, requiring power companies with a power generation capacity with more than 500MW to generate a given portion of renewable energies out of their combined power production. Under the New and Renewable Energy Act, new and renewable energies consist of three new energies — hydrogen energy, fuel cells and coal to liquids — as well as eight renewable energies, including photovoltaic power, solar energy, bio-mass, winder power and tidal power.
‘Coping with All Changes in a Nimble Manner’
In his New Year’s message, President Chung cited “jultakdongshi,” a Chinese saying meaning that “if staff devote their utmost internally” and KOMIPO “accommodates all external environment conditions,” the power company is expected to be successful.
Given the unfavorable business conditions surrounding coal-fired power generation and the power industry’s looming changes, including possible initial public offerings, KOMIPO President Chung stressed the importance of coping with all changes in a nimble manner.
Korea Midland Power Co. was established under a 2001 restructuring scheme in the domestic power industry. It is charged with developing power resources and ensuring a stable supply of electricity.
KOMIPO now operates six power plants, including the Seoul Thermal Power Plant, the nation’s first thermal power unit, and the Boryung Thermal Power Complex, the nation’s biggest thermal power complex.
The power company is continuing to invest and explore such eco-friendly industries as photovoltaic power and other renewables. It has a power facility capacity of 8,337MW and accounts for 10 percent of the nation’s total power generation.