Korea Electric Power Corp. (KEPCO) announced on June 19 that it has been selected as a preferred bidder for the construction and operation of Dededo Natural Gas-Fired Combined Cycle Power Plant (200 MW) in Guam.
This marked the first time that a Korean company won an order for the construction of a U.S. thermal power plant through international competitive bidding.
KEPCO will build and operate the power plant and sell generated electric power for the next 25 years. A consortium will be formed for the project between Korea East-West Power (a 40 percent stake), which has experience in operating a diesel power plant, and KEPCO (a 60 percent stake) that performed a solar power generation project in Guam.
The consortium will break ground for plant construction in May 2020 and commence the plant’s commercial operation in October 2022.
KEPCO minimized factors for fuel price fluctuation in this project. The client, the Guam Power Authority (GPA), will be in charge of supplying fuel, and electricity charges and financing, construction and operation costs will be all paid in U.S. dollars.
KEPCO will secure power generation facilities with production capacities of a total of 258 megawatts in Guam when the combined cycle gas power plant (198 MW) is completed along with a 60 MW photovoltaic power plant in the Mangilao Region in Guam. KEPCO landed an order to build the 60 MW photovoltaic power plant in 2017. Then power generation facilities built by KEPCO will account for about 55% of all power generation facilities in Guam.