Korea Electric Power : KEPCO secures HVDC-VSC subsea transmission system ...

KEPCO News

KEPCO secures HVDC-VSC subsea transmission system project in the UAE, and launches its first transmission system construction and operation project overseas

December 2021

• KEPCO (President & CEO Seung-il Cheong) has been selected as successful bidder for the HVDC-VSC subsea transmission system construction and operation project of UAE procured by Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Electricity Company PJSC (TAQA) and clinched the deal on December 22, 2021 (2:00 PM) through an international tender with numerous competitors.1)
• This project will supply sustainable power for ADNOC's offshore production operations by constructing a subsea transmission system for 2 routes with a total length of 259km and operating for 35 years.
• This mega project is worth $3.6 billion and is expected to generate a stable profit through a long-term transmission agreement with the Procurer for 35 years.
• KEPCO has participated in the tender by forming a consortium comprising Japan's Kyushu Electric Power Co. and Électricité de France (EDF) , and managed the entire tendering process, drawing from the vast experience from the construction of the Jeju HVDC subsea transmission system and its stable operation for 30 years.
• Design and construction of the subsea transmission system will be conducted by Samsung C&T, who possesses numerous plant construction experience in the Middle East and North African

1) Vision Invest (Saudi Arabia) - Elia (Belgium) consortium, CSG (China), Kansai Power (Japan)

(MENA) region, and Jan De Nul, a Belgian corporate that possesses the state-of-the-art technology in the subsea cable construction field.

• Following its official announcement as the successful bidder, the KEPCO consortium will have an edge over the power grid project procurement tenders that are expected to expand to Central and South America and Central Asia in the future.
• This project is extremely strategic in that it has set forth a "win-win model that maximized bidding competitiveness through collaboration and cooperation of the public and private", with KEPCO having managed the overall bidding process and is due to oversee the operation and maintenance of the subsea transmission system operation in the future, Samsung C&T managing the design and construction, and K-EXIM participating as lender to provide competitive funding.
• The project is in line with the UAE "Net Zero by 2050 Strategic Initiative" and is implemented to achieve more than 30% carbon emission reduction by supplying ADNOC's offshore production facilities with cleaner and more efficient energy, delivered through TAQA's onshore grid.
• This project has been selected as a potential project for the Green New Deal sector in the "K-New Deal Globalization Strategy" announced by the Korean government last January.
• KEPCO is greatly expanding its overseas renewable energy and grid project portfolio to swim with the tide of energy shift paradigm and Carbon Neutrality.