Kepco selling PH diesel, coal assets in bid to join green campaign

South Korea-based Korea Electric Power Corp. (Kepco) is divesting its energy assets as it continues to move forward with its net-zero goals but will remain present in the sector to explore potential investments in the renewables arena.

In a statement, Kepco said it was selling its 60-percent stake in a thermal power plant in Cebu through Kepco SPC Power Corp. and its 40-percent interest in SPC Power Corp.

The company said the move would further strengthen its commitment to carbon neutrality and its plan for a complete phase-out of coal by 2050.

Kepco said it was currently in the second round of the sale process and received 'high interest' from several domestic and foreign bidders since it started in October last year. It did not divulge the names of the interested entities.

'Despite the worldwide [environmental, social and governance] movement, the country's rising electricity demands and reliance on coal, as power source, allowed for competitive bids,' it noted.

Kepco SPC Power, a joint venture of Kepco Philippines Holdings Inc. and Cebu-based listed company SPC Power, operates the 200-megawatt coal-fired power plant in Naga City, Cebu.

SPC Power's other existing facilities include the 22-megawatt (MW) Bohol diesel-fired plant in Tagbilaran City and the 146.6-MW Panay diesel-fired plant in Iloilo.

Prospective bidders

SPC Power is interested in acquiring Kepco's shares in the aforementioned projects.

Kepco earlier announced securing the regulatory approval to venture into the renewable space, enabling it to develop solar, wind, hydro, geothermal, ocean energy sources or hybrid systems.

Shortlisted bidders were expected to submit their final offers by the first quarter of this year, Kepco said.

'The shortlisted bidders are currently undergoing due diligence and site visits. As the marketing process drew more than the expected interests, the potential sale process has gained further traction towards a successful closing,' it added.

Through its unit Kepco Philippines, Kepco will retain its presence in the local energy scene since it still has an existing investment in Solar Philippines Power Project Holdings Inc.

Kepco has a 38-percent share in Solar Philippines subsidiary Solar Philippines Calatagan Corp., which runs a 63.3-MW solar farm in Calatagan, Batangas. INQ