Korea Electric Power Corp. on Sunday said that the company will be designing and building a digitized power substation in Bhutan.

This is the first export case of a substation engineering, procurement and construction project for the state-run corporation. 

Under the $25.6-million contract signed by KEPCO CEO Cho Hwan-eik and Bhutan Power Corp. CEO GEM Tshering, KEPCO will replace outdated 220-kilovolt outdoor substations in the southern city of Phuntsholing with automated facilities that have surveillance features by 2018.

KEPCO said that the majority of the parts would be manufactured by Korean makers, creating 14 billion won ($11.5 million) in exports for domestic suppliers.

“This is a very important business for Bhutan, accounting for 1.3 percent of the country’s $2-billion gross domestic production. The fact that Korean midsized suppliers can join the project doubles the synergy,” a KEPCO official stated.

KEPCO has generated $170 million in sales through consulting and building electric supply systems in 23 countries since 2001.

The company has added renewable or new energy generation including the smart grid, micro grid and energy saving system. It is planning to participate in the creation of a smart grid station in India by cooperating with India Power Grid. 

By Bae Ji-sook
(baejisook@heraldcorp.com)