‘Boseonggang Solar Power’ Grand Prize…Last year’s National Assembly Officer Yoon Young-seok pointed out
Daily average power generation time, fixed maintenance expenditure, use of Chinese-made modules, etc.
[에너지신문] The operator, Korea Hydro & Nuclear Power, decided to conduct its own audit of the Boseonggang solar power plant, which was criticized for being overvalued for its economic feasibility.
Boseonggang Solar Power Plant was a facility that KHNP purchased and operated in the form of a business acquisition of a solar power plant operated by a private company in October 2018.
At last year’s audit of the National Assembly’s National Assembly, Rep. Young-Seok Yoon (the power of the people) pointed out the’overestimation of economic feasibility’ of the Boseong River solar power plant, and this self-audit is a follow-up measure. According to the response data submitted by KHNP to Congressman Young-Seok Yoon’s office, an audit of the economic performance of the Boseong River solar power acquisition will be conducted from the 11th to the 22nd.
Han Suwon explained the background of the audit, saying, “We acquired the Boseonggang solar power business through a legal acquisition process, but as suspicions are raised in the evaluation of economic feasibility, we conduct our own audit to resolve this problem.”
According to the audit office of KHNP, first of all, an audit is underway for the suspicion that the actual power generation time (3.32 hours) in 2019 was shorter than the average daily power generation time (3.84 hours) predicted at the time of acquisition in 2018, which inflated economic feasibility. Solar power generation, which varies depending on the weather, is expected to focus on this area as the average daily power generation time occupies a large part in the economic evaluation.
In addition, it is subject to audit that the fixed costs such as the power plant site rental fee and facility operation consignment cost are excessively high, and that a disadvantageous contract was signed.
When KHNP acquired a private solar power plant that was already in operation, KHNP chose to lease it for 25 years instead of purchasing a site for the power plant. The facilities such as modules were under the condition that KHNP would self-demolition when the lease was over, and the operation and maintenance work was left to an outside company that originally managed the power plant.
Annually, a total of 490 million won, including 30 million won for land rent and 460 million won for facility operation maintenance and consignment, are spent as fixed expenses, which is 72% of the annual sales of the power plant (680 million won).
In addition, the audit office plans to check the economic feasibility by comparing the acquisition price, sales, and fixed costs with its own facilities and facilities of other power generation companies. It is to secure the profit and loss data of solar power owned by other power generation companies, and compare and evaluate the profit and loss data of KHNP’s solar power and Boseong River’s solar power.
The part that the photovoltaic module installed at the Boseonggang solar power plant is made in China is also included in the audit. KHNP’s responsibility theory may be less persuasive in that the Boseonggang solar power plant was a private facility rather than the KHNP’s own construction.
If this self-audit confirms that economic feasibility is excessively inflated, it is expected that KHNP as well as five power generation companies operating or planning to invest in solar power plants will put a considerable burden.
Copyright © The Energy Newspaper Unauthorized reproduction and redistribution prohibited