South Korea’s state-run utility firm Korea Electric Power Corporation (KEPCO) will develop solar energy in Mongolia in partnership with Japan-based information technology company SoftBank Group Corp. and Mongolian energy development company Newcom Group.

According to KEPCO on Tuesday, the Korean company signed a memorandum of understanding (MOU) to develop new renewable energy in Mongolia with SoftBank and Newcom. They will soon conduct a feasibility study on the development of a 30-megawatt solar power plant in Mongolia.

SoftBank whose CEO, Masayoshi Son, has been longing for solar power development in Mongolia, will participate in the development project through a stake investment. Son has been calling for the need of eco-friendly power grid in Asia connecting Korea, Japan, Mongolia and China. Under his plan, clean energy produced in Mongolia would be transmitted to the rest Asian countries, a move that is expected to ease electric power shortage and reduce greenhouse gas emissions.

The Mongolian government has also become more aggressive in developing new renewable energy sources, unveiling its plan to boost power generation from the new renewable energy to 25 percent of the country’s total energy output by 2025. With nearly 300 sunny days a year, the East Asian country has favorable conditions for solar power generation, an unnamed official at KEPCO said, adding that the nation with abundant natural energy sources like abundant sun lights and mines has a great potential in new renewable energy development.

KEPCO signed another MOU for transmission facility improvement and business development with Mongolian state-run transmission company National Power Transmission Grid (NPTG). The Korean company plans to carry out a joint study for power system and capital investment with the Mongolian company.

“As the East Asian country has rich mineral resources, we would have various investment opportunities in plant construction in the future,” said KEPCO CEO Cho Hwan-eik.

By Kim Jung-hwan

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]