Overview
The global power consumption has grown tremendously in the past two centuries and power demand is expected to increase rapidly.
Each country faces different challenge in power generation. Developed countries are urgently seeking sustainable ways to produce sufficient amount of electricity to support its infrastructure and comply with international environment agreements. On the other hand, underdeveloped and developing countries are looking for solutions to expand power generation capacity to promote industrial development and to secure stable supply of electricity.
In order to satisfy and support our clients with various requests, we perform as a total service provider. We deal with projects such as combined cycle power plant, coal-fired power plant and diesel power plant. Our wide range of services, from project development, project structuring, financing, to engineering/procurement/construction, equity investment and operation and management, ensure that these projects are carried out seamlessly.
Business Area
Role
Project Organizing
Project Development
For various power projects ranging from conventional energy to renewable energy, we gather and analyze project information on a global scale through more than 100 regional offices and leading industry partners. As a project organizer and/or equity stakeholder, we consult clients or partners to initiate projects. In the most of our key markets, we have our long-established presence and strong networks to facilitate timely project implementation. Through our expertise in developing power projects and in each market’s unique business environment, we can add values to project from the very early stage by enhancing its viability and navigating through potential hurdles. We are not confined to just major power markets when it comes to developing business opportunities. For instances in Balkhash Project in Kazakhstan, where the market has insufficient legal framework for IPP business model, we have led relevant government bodies to implement new set of legal framework to facilitate bankable IPP structure.
Project Structuring
The key to acquiring project viability is to sound overall project structuring and methodical know-how to identify and mitigate potential risks. We have a long list of experience in various business models such as BOT/ BOO IPP as well as EPC and/or financing arrangements. As a project developer, we devise integrated project structure by applying optimized financing and risk management strategy based on in-depth analysis on relevant regulation, long-term economic and sociopolitical factors per commercial/technical specifications of the each project. With a strong brand name synonymous with reliability and competitive in-house EPC arm as well as long-standing relationships with all levels of domestic/international financial institutions and renowned firms providing world class financial/legal/technical advisory services, we have an array of options to make the best possible project structure.
Equity Investment
As a world class power project developer, we have strong interests to participate in projects through equity investment to provide more stability and reliability to the sponsor group. We also organize and arrange other strategic/financial equity investors in accordance with the project structure. A growing interest of Korean pension funds in international power projects intensifies our abilities to boost reliable investment capital. To meet our corporate investment criteria, we are currently focused on markets with IPP legal framework and/or government guarantee on payment and so on. However, depending on project structure and our scope of work, we are looking to expand into merchant markets and markets with no prior IPP experience.
Financing (Project Financing, ECA Financing, etc)
We assist governments and private entities to finance their project cost through commercial and ECA loans. We promote project financing through securing credibility of all the contracting parties, especially off-taker(s), so that we can achieve bankable PPA terms in the most competitive conditions from lenders. We have financing capability derived from long-standing relationships with Korean Export Credit Agencies such as K-Exim, K-Sure and KOFC that can provide substantial loan amount at a low spread for a competitive long tenor. It has been developed through successful experiences accumulated over several decades and enables us to facilitate project financing at the most competitive cost.
Engineering/Procurement/Construction
Leveraging in-house EPC capability and another EPC arm of our affiliate company, Samsung Engineering, we are capable of arranging the most reliable EPC players for a variety of projects. Samsung C&T and Samsung Engineering have extensive project track record in domestic and overseas markets which ranges from conventional coal and gas-fired power plants to renewable energy. We also have collaborated with other Korean EPCs providing top-tier services to clients. Our experiences, knowledge and networks enable our clients to enjoy the most viable and reliable EPC solutions at a competitive price.
Operation and Management
We have led projects to a great success with global leading O&M contractors and major Korean utilities that have established a strong relationship with us. We believe that our expertise in optimizing O&M cost strengthens our competitiveness in that it ensures profitability during the operation period. Through numerous projects, we have a wealth of experience mitigating sociopolitical challenges and fulfilling our commitment toward environmental responsibility that comes with operating power plants.
