Korean Southern Power discusses cost-cutting for new pumped-hydro projects
Korean Southern Power (KOSPO) held a workshop to discuss design optimization and investment cost reduction strategies for new pumped-hydro power projects.
Our take
What specific strategies is KOSPO exploring to reduce pumped-hydro costs?
KOSPO's initiative to apply Value Engineering (VE) from the design phase aims to enhance the economic viability of new pumped-hydro projects by proactively identifying cost-saving elements, addressing the challenge of large-scale investment costs.
Pumped-hydro projects, while crucial for grid stability amidst growing renewable energy, face significant economic hurdles due to their large upfront investment. KOSPO's proactive approach, focusing on Value Engineering during design and construction, aims to internalize cost efficiencies. This strategy seeks to mitigate the financial burden on the project developer, making these essential infrastructure projects more attractive and feasible for future development.
What the source says
- Korean Southern Power is preparing measures to reduce investment costs from the design phase for new pumped-hydro projects to enhance their business viability.
- On September 17, Korean Southern Power held a 'New Pumped-Hydro Design Optimization Workshop' at its Busan headquarters.
- The workshop discussed investment cost reduction methods, including facility planning that considers geological and topographical conditions for new pumped-hydro projects KOSPO is preparing.
- Experts from the Korea Tunnel and Underground Space Association and the hydropower industry participated to review technical feasibility and applicability to domestic pumped-hydro projects.
- Korean Southern Power plans to apply Value Engineering (VE) for design optimization at each major design stage of future pumped-hydro projects.
- Korean Southern Power aims to develop a pumped-hydro construction model that enhances economic viability by identifying cost-saving elements throughout the entire process from design to construction and operation.
- Ahn Yong-hwan Ahn Yong-hwan, Head of KOSPO's Construction Division, stated that KOSPO will proactively review all processes from design to construction to enhance economic viability and lower the national energy transition cost burden.
- The government is promoting the expansion of new pumped-hydro facilities to secure a stable power supply, anticipating a series of large-scale construction projects.
For investors — For investors and operators, KOSPO's focus on Value Engineering (VE) could lead to more economically viable pumped-hydro projects, potentially reducing long-term operational costs and improving project attractiveness.
Watch: Monitoring KOSPO's implementation of Value Engineering (VE) in future pumped-hydro project designs and its impact on project costs.
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