July 28 (Renewables Now) - Paris-based renewable power producer Total Eren said today it has reached the financial close and subsequently initiated construction work on a 16.7-MW onshore wind project on the East Coast of South Korea.

Total Eren has co-developed the Parang Project on land owned by a local clan in the county of Yeong-deok with its local partner WEEN E&S, which holds a 5% interest in the scheme.

Korea Midland Power (KOMIPO), a unit of state-owned utility Korea Electric Power Corp (KRX:015760), or KEPCO, invested in a 25% stake in the project last December and will be receiving the Renewable Energy Certificates (RECs) generated by the wind farm over a period of 20 years. The electricity produced by the plant will be supplied to the local electricity market.

The three partners have secured KRW 55 billion (USD 41.9m/EUR 41.2m) in long-term financing for the project from a local private equity fund in a process advised by IBK Securities.

Korean construction company Kolon Global has been contracted to build the wind park using three 5.56-MW E160 turbines supplied by Germany’s Enercon. Commercial operation is scheduled for the first quarter of 2024.

(KRW 1,000 = USD 0.761/EUR 0.750)

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