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Total Eren, a major renewable energy Independent Power Producer (“IPP”), based in Paris is happy to announce the successful construction and Financial Close of the “Parang Project”, which is a 16.7 MW windfarm, along with its partners WEEN E&S (WEEN) and Korea Midland Power (KOMIPO). The Parang Project will take place in Yeong-deok on the East Coast South Korea.
Total Eren and WEEN, a Korean developer who owns a 5% share in the Parang Project, co-developed the Parang Project. KOPIMO, the fully-owned subsidiary of the state-owned Korea Electric Power Corporation (“KEPCO”) acquired a 25% stake in December 2020. Parang Project will generate electricity for the Korean electricity market. KOMIPO will receive Renewable Energy Certificates (RECs), which will be delivered through a 20 year REC Agreement. This will help to hedge the market risk.
In July 2022, the Project reached Financial Close. Total Eren, WEEN, and KOMIPO obtained long-term financing of KRW 55billion ( USD 44.5million) from a local private equity firm that specializes in investing in offshore wind projects in Korea. IBK Securities, a local advisor, advised the financing process.
Kolon Global, a Korean company, signed the Engineering, Procurement and Construction contract (EPC). Enercon will supply the Wind Turbine Generators. (E160) Parang Project consists of three turbines with a 5.56 MW each. It is expected to produce approximately 43 GWh annually, enough to power about 35,000 households in South Korea. Commercial operation is expected in Q1 2024.
The Project is situated on land belonging to a local clan called “Yeongnam Nam–ssi Goejeonggong–pa”. They have lived in this area since 1600s and established a village. Hoji-Maeul is a clan village and has been designated a National Folklore Cultural Heritage. It is 2km from the Project site. Total Eren, WEEN, and KOMIPO with the support of the clan will help to develop local communities and establish long-term relationships with local stakeholders.
The Parang Project will contribute to the creation of a low-carbon climate, increasing energy security, and encouraging socio-economic growth in South Korea. Total Eren Asia has a total installed capacity of over 1.3 GW. This includes solar and wind farms in Australia, Cambodia, India, Philippines, Uzbekistan, and Kazakhstan. Total Eren relies on its regional office in Singapore and has teams based in Australia, Cambodia, India, Indonesia, Kazakhstan, the Philippines, South Korea, Uzbekistan, and Vietnam.