K&M’s Guam Project Reaches New Milestone
The developer for a new IPP in Guam has signed an Energy Conversion Agreement with the Guam Power Authority (GPA). K&M supported the GPA throughout the project procurement process, and helped the utility select the Korea Electric Power Company (KEPCO) to develop it. KEPCO, in a consortium with its wholly owned subsidy Korea East-West Power Co (EWP), will sell the GPA all of the project’s capacity and produced energy for 25 years from the commercial operation date. This marks an important milestone for the GPA’s IPP New Generation Project and energy security in Guam.
“This will really help us meet our mission to provide safe, reliable, environmentally friendly power.” said John Benavente, GPA General Manager. “For several decades, we’ve been under the mercy of fuel price increases and unstable prices which were beyond control, resulting in higher costs for our ratepayers… With today’s signing for the new power plant, opportunities open up for us.”
As reported previously, K&M has supported the GPA throughout the procurement process for its 180 MW power plant. Lenny Golbin, managing director of technical services, and Derek Martin, managing director of transaction services, helped the GPA navigate the project’s complex technical and commercial issues.
Construction on the 180 MW power plant, which will be located in Dedeo, a village in northeast Guam, will begin in August. Commercial operations will commence in October 2022.