Kim Dong-cheol, president of KEPCO, speaks during a parliamentary audit in Naju, South Jeolla Province, Oct. 14. Yonhap

The state-run Korea Electric Power Corp. (KEPCO) has been shortlisted for major renewable energy projects in Saudi Arabia estimated at 3 trillion won ($2.16 billion), the Saudi’s energy procurement agency said Monday.

The Saudi Power Procurement Company (SPPC) announced KEPCO as one of the shortlisted bidders for three of the four solar projects under the National Renewable Energy Program.

“It is true that (the company) is seeking to participate in the project,” a KEPCO official said.

The official, however, said the company is still taking a wait-and-see approach for the result, noting that conditions for the three projects vary.

The projects will be carried out under build-own-operate contracts, and each participant will enter into a 25-year power purchase agreement with Saudi Arabia, according to the SPPC.

The latest announcement came amid KEPCO’s efforts to improve its financial health, as the company had not been able to raise electricity rates sufficiently to cover high fuel costs and rising inflation during the COVID-19 pandemic.

The company’s debt totaled 202.9 trillion won as of June, up 440 billion won from the end of 2023.

A survey conducted by Yonhap Infomax, the financial arm of Yonhap News Agency, estimated KEPCO’s third-quarter operating profit at 3.1 trillion won, which would mark a 57.4 percent spike from the 1.99 trillion won recorded a year earlier, as well as the highest operating income in around three years.

Such an outlook comes about a week after the company raised electricity rates for industrial use while freezing rates for households to address its financial strains. KEPCO has also hinted at the possibility of additional hikes next year, including potential increases for households.

During a recent parliamentary audit, Industry Minister Ahn Duk-geun noted that KEPCO is “in the process of gradually normalizing overall electricity rates.” (Yonhap)