KEPCO KPS signs O&M extension agreement for Uruguay power plant

South Korea’s KEPCO KPS signed an extension agreement with the Uruguayan Electricity Authority (UTE) on Wednesday for the operation and maintenance of the Punta del Tigre combined cycle power plant.

According to KEPCO KPS, the electric power facility maintenance company, the project is expected to generate sales of up to 50 billion won ($39.2 million) over two years.

Previously, KEPCO KPS won the Tigre combined cycle power plant project in Uruguay in 2012 by forming a consortium from the plant's construction stage. After discussing whether to extend the contract period with the UTE ahead of the expiration of the contract in November this year, the company decided to extend the period for two years until 2025.

Through this, KEPCO KPS has secured expected sales of about 37.5 billion won over the next two years.

In addition, KEPCO KPS said that if the Class B planned preventive maintenance worth 14 billion won is carried out in September 2024, it is expected to increase sales by a total of 51.5 billion won.

KEPCO KPS has secured a two-year extension option beyond November 2025, which could generate additional sales in the future.

"We look forward to creating synergistic effects to lead the global green energy market by improving the performance of old power plants and strengthening our business competitiveness in the renewable energy sector, including green hydrogen production," said Kim Hongyeon, CEO of KEPCO KPS.

Write to Han-Shin Park at phs@hankyung.com