South Korea`s state-run Korea Electric Power Corp. (KEPCO) is considering building third undersea high-speed power grid connecting the southern part of the Korean peninsula to Jeju island to meet growing demand from increased population in the country’s popular resort destination.

According to sources from the energy industry on Monday, the state-owned utility firm is reviewing a project to establish the third submarine cable reaching Jeju island. "The firm is pushing ahead with the plan to add a submarine power grid to Jeju as its growing population makes it difficult to self-support the rising demand for energy," said an unnamed high-level source from the utility industry.

In the last few years, the southern resort island has been steadily attracting migrants who seek better education for their children and a more relaxing lifestyle from elsewhere in the country. The island has set up an English campus town in an attempt to turn itself into Asia’s next education hub, successfully luring boarding schools from foreign countries like Britain and Canada to set up their sister schools in the island.

Industry watchers expect KEPCO to start building the third undersea cable around 2019 after analyzing energy demand and utility market.

"We are examining the possible route and capacity of the third submarine cable linking the land with Jeju island," said an official from KEPCO, adding that the company is still working out the details of the project.

The company is expected to build a high volatage, direct current (HVDC) submarine power grid just like the first and second ones. The HVDC system lessens energy loss as it is capable of transferring a large volume of power at once over a long distance.

The company established its first 96-kilometer-long (59.65 miles) submarine HVDC power grid with a capacity of 300 megawatt (MW) connecting Haenam in South Jeolla Province to Jeju in 1998, and the second with a 400 MW capacity linking Jindo, also in South Jeolla province with Jeju in 2013.

Shares of KEPCO closed Tuesday at 43,750 won, up 1.98 percent or 850 won from the previous session.

By Kim Jung-hwan

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