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 participating as joint lead arrangers and lenders.
The project involves the construction of a 90 MW solar power plant in Yeonggwang, which will supply electricity to Gwangsan District in Gwangju through an underground transmission line extending about 50 kilometers. This initiative represents a significant investment in renewable energy infrastructure.
Alpha Asset Management is the project owner. The firm has been gradually advancing the project since establishing a fund for solar power investments 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 generated electricity will be sold in full to Hyundai Engineering & Construction for the next 30 years, supporting the expansion of renewable energy use among domestic companies and facilitating their compliance with RE100, while securing a long-term buyer to enhance project stability.
The project is set to expand in phases, starting with the initial 90 MW. Future phases will include an additional 70 MW and 140 MW, ultimately creating a solar cluster with a total capacity of 300 MW. This capacity is expected to generate enough electricity to power approximately 110,000 households for a year.
A Shinhan Bank representative stated, "We will expand financial support for renewable energy 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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