On June 18, Shinhan Bank announced that it has completed a project financing agreement with Korea Development Bank for a 90-megawatt (MW) solar power project in Yeonggwang, South Jeolla Province. The agreement is valued at approximately 241 billion won, with Shinhan Bank and Korea Development Bank serving as joint lead arrangers and lenders.
The project involves the construction of a 90 MW solar power plant in Yeonggwang and the installation of an underground transmission line approximately 50 kilometers long to supply electricity to Gwangsan District in Gwangju.
Alpha Asset Management is the project owner. The firm has been gradually advancing the project since establishing a fund for solar power investment in 2023. The construction will be carried out by a consortium of LS Electric and Iljin Electric, while LS Electric will also handle operations and maintenance (O&M).
The electricity generated will be sold in its entirety to Hyundai Engineering & Construction for the next 30 years, supporting the expansion of renewable energy use among domestic companies and facilitating compliance with RE100, while securing a long-term customer to enhance project stability.
The project will also expand in phases. Following the initial 90 MW phase, subsequent phases will add 70 MW and 140 MW, ultimately creating a solar cluster with a total capacity of 300 MW. This capacity is sufficient to supply electricity for about 110,000 households for a year.
A Shinhan Bank representative stated, "We will expand financial support in the renewable energy sector to contribute to companies' compliance with RE100 and the development of a domestic eco-friendly energy ecosystem."
* This article has been translated by AI.
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