KEPCO,

A Smart Energy Creator

2018.
2018. 9
9
1 Domestic Business

2 Overseas Business

3 Competitiveness
1 Domestic Business
History 1. Domestic Business

Since the foundation of Hansung Electric Company in 1898,

KEPCO has stably supplied electric power for 119 years
through countless changes and innovations.

Hansung Electric Co. Completed power KEPCO shares were Won the first overseas Held Bitgaram
was founded network construction listed in the New York nuclear plant International Exposition
(predecessor of KEPCO) for rural areas Stock Exchange contract(UAE) (BIXPO)
1898 1979 1994 2009 2017

1900~1980s 1990s 2000~2010s

1961 1982 1995 2013

Korea Electric Co. KECO was renamed Won the Malaya Held the World
(KECO) Korea Electric Power ROMM project in Energy Congress
was established Corp.(KEPCO) the Philippines (WEC)
 Dominant Player in Korea 1. Domestic Business

Major
Businesses
Korean Government

Aa2 S&P AA-

Transmission 51% Assets
USD165.9 billion (KRW 177.8 Tn)
& Distribution Moody’s AA Fitch
Revenues
100% market USD52.9 billion (KRW 59.8 Tn)
share in Korean
power market
100% 100% 100% 100% 100% 100%
Generation
82,132MW KHNP KOEN KOMIPO WP KOSPO EWP
Nuclear & Hydro Thermal & Renewable Thermal & Renewable Thermal & Renewable Thermal & Renewable Thermal & Renewable
80.0% market
share1) in Korean Assets ￦ 52.8Tn Assets ￦ 9.8Tn Assets ￦ 9.1Tn Assets ￦ 9.8Tn Assets ￦ 9.8Tn Assets ￦ 9.0Tn
power market Revenus ￦ 11.2Tn Revenus ￦ 5.1Tn Revenus ￦ 3.7Tn Revenus ￦ 4.2Tn Revenus ￦ 4.2Tn Revenus ￦ 4.2Tn

KEPCO E&C (65.8%) Engineering Service KEPCO KDN (100%) IT Service

Others2) KEPCO KPS (51.0%) Maintenance & Repair KEPCO NF (96.4%) Nuclear Fuel
KEPID (29.0%) Retail Metering KOGAS (20.5%) Import & Supply of LNG

1) Electric power trading volume for 2016: 80.0% or 414,897GWh by 6 GENCOs, and 20.0% or 103,900GWh by IPPs
2) Others include major subsidiaries and affiliates of KEPCO other than the 6 GENCOs

※ Asset: As of the end of 2017 (KRW/USD = 1,071.40)

※ Revenue: As of the end of 2017 (Annual average exchange rate KRW/USD = 1,130.84)
Operational Performance 1. Domestic Business

(Accumulated as of Dec. 2017)

Sales Revenues

Residential Residential
Industrial 68.5 bil. kWh (14%) Industrial KRW 7.4 trillion (13%)
285.9 bil. kWh KRW 30.7 trillion
(56%) (55%)
507.7 bil. KRW 55.6
Commercial/Public Commercial/Public
kWh trillion
153.3 bil. kWh KRW 17.5 trillion
(30%) (32%)

Sales Trend
Demand growth rate (%) GDP growth rate (%)

10.1
6.3 6.5 5.2 5.7 4.8
4.5 3.1
2.4 6.5 2.5 3.0 3.3 2.8
4.9 5.5 2.6
4.9 3.9
2.8 3.7 2.7 2.2
2.3 1.8 0.6 1.3
0.7

‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17
Generation 1. Domestic Business

KEPCO is one of the world’s top 10 power providers

with generation capacity of 82,132MW.

As a result of effective management of power demand and supply, KEPCO’s

load factor in 2016 was 74.3%, the world’s highest.

KEPCO & its subsidiaries run 70.3% of the total capacity in Korea.

Nuclear Oil LNG Coal Renewable

22.5 GW 3.3 GW 16.0 GW 34.1 GW 6.2 GW

27.4 % 4.0 % 19.5 % 41.5 % 7.6 %

※ Renewable: Hydro 5.4GW / Etc. 0.8GW ※ Last updated in December 2017

T&D Network 1. Domestic Business

KEPCO’s state-of-the-art technologies and smart power grids enable

the company to achieve the world’s best T&D efficiency.

Power outage
T&D Facilities per household T&D loss rate
(As of the end of 2017)
Transmission Lines
33,803 c-km [min] [%]

42,527 towers 523

• New Maintenance 29.4 • Pilferage
Underground: 11.8% 300
Technology
30
Prevention
Program
Substations
• Voltage Upgrade
834 200
• SCADA, DAS
20

Capacity: 310,000MVA
• Low Loss
Unmanned substations: 84.6% • NDIS, MTPI Facilities AMI
100 10
Distribution Lines 8 6
3.57
19
478,127c-km 30 9.08

2.18 million transformers ’85 ’95 ’05 ’17 ’61 ’80 ’95 ’17

Underground: 17.7% • MTPI: Maintenance Technology without Power Interruption

※ Source : 2018 Annual Report

New Energy Business 1. Domestic Business

※ Source : 2017 Annual Report

K-BEMS F/R ESS

Performance Performance
Installed locations : 116 Capacity : 376MW
: 13
Substations(no.)

Expected effects Expected effects

10% less peak load in buildings Stabilization of the power system & reduction of power cost
10% less power consumption Promotion of ESS PJT in Korea
5% less CO2 & advance into global markets based on track records

Smart-Grid EVC
AMI-based services EV
97,000 households
Vehicles : 11,767
E-consulting for high volume
consumers Charger
13,000 households
High - speed : 507
Expected effects Low - speed : 879
Contribution to the Paris Expected effects
Agreement by reducing CO2 emissions & Promotion of EVs, reduction
improving the energy efficiency of greenhouse gas emissions
Establishment of a foothold for advancing into the global Convenient, nationwide use of EVs
market & contribution to the balanced growth of local
areas with participation of municipalities
2017 ~ 2018 Highlights 1. Domestic Business

U.S. – Solar farms in CO, CA and Guam

Japan - Chitose Solar

Signed a contract for distribution Sponsored Pyeongchang Winter Olympics and

EPC projects in Dominican Republic supplied power without interruption

Signed a contract for a 1,200MW coal-fired Successfully held BIXPO 2017

power plant project in Vietnam and won a (268 companies from 40 countries and
1,200MW project in Malaysia 70,000 participants)
2 Overseas Business
Presence by Country 2. Overseas Business

43 Projects In 26 Countries (As of September 2018)

Nuclear Thermal Renewable T&D Resource

1 Project in 13 Projects in 6 Projects in 22 Projects in 1 Project in

UAE 10 Countries 4 Countries 18 Countries Australia
Jordan
Al Qatrana (Gas, 373MW)
Amman (Diesel, 573MW) China
Fujeij (Wind, 89MW) Shanxi (Coal, 9,135MW)
Wind Farm (1,017MW) U.S.
Europe Barakah (Nuclear 5,600MW) Solar (7MW) Colorado (Solar, 30MW)
Shuweihat S3 (Gas 1,600MW) Guam (Solar, 60MW)
UAE Kazakhstan Japan California (Solar, 235MW)
Pakistan China Japan North America
Iran Chitose (Solar, 28MW)
Bhutan Vietnam Dominican
Middle East
Bangladesh
Nghi Son II (Coal , 1,200MW)
Mexico Jamaica Republic
Myanmar
South East Asia Philippines Norte II (Gas, 433MW)
Saudi Arabia Sri Lanka Cambodia
Barbados
Guam Ilijan (Gas, 1,200MW)
Ethiopia Rabigh (Oil 1,204MW) Malaysia Cebu (Coal, 200MW)
Nigeria Ecuador
Pulau Indah (Gas 1,200MW) SPC(Gas/Diesel, 277MW)
Tanzania
Egbin (O&M) T&D
Australia
Botswana Generation
Africa Bylong (Coal)
South Africa Resource Development
Thabametsi (Coal, 630MW)
Overseas Branches
 Overseas Generation Facilities 2. Overseas Business

25,091MW (8,387MW with equity)

Thermal Nuclear(EPC*) Renewable

18,025 5,600 1,466

MW MW MW

Operation Construction Construction Operation Construction

12,392 MW 5,633 MW 5,600 MW 1,317 MW onMW
149

Coal 11,442MW(4,091MW)
Wind Power 1,106MW(496MW)
Heavy Oil 1,777MW(826MW)
PV power
Gas 4,806MW(1,766MW) 360MW(200MW)

※ 4 projects won by KEPCO are included

(Nghi Son Ⅱ in Vietnam, Thabametsi in South Africa, Guam PV Solar and Pulau Indah in Malaysia)
T&D and New Energy Business 2. Overseas Business

90 Projects USD443million

EPC Consultancy New Energy Business

5 9 28 59 21 22
Countries Projects Countries Projects Countries Projects

T&D EPC Projects Consultancy Projects New Energy Projects

Sri Lanka, India, Vietnam
Asia Bhutan(2), India Myanmar(6), Asia
Myanmar, Philippines
Cambodia(5) Egypt(2), Nigeria, Ethiopia,
Philippines(4), India(2) Africa
America Dominica(3), Haiti Asia Tanzania, Mozabique
Bangladesh(5), Canada, Guam, Paraguay
Pakistan(2) Indonesia, America
Dominca, Ecuador , Barbados
CIS Kazakhstan(2) Mongolia, China,
CIS Uzbekistan, Khazakstan
Malaysia, Laos Uklane
Libya(8), Ghana(4), Egypt
Saudi Arabia
Africa Ethiopia(2), Mozambique Middle East UAE, Jordan
Nigeria(2), Botswana,
Cote d’lvoire, WAPP Micro
MicroGrid
Grid AMI
AMI
America Dominica, Paraguay,
Peru(2) Ecuador, Colombia Network

CIS Ukraine, Uzbekistan

Dominican Republic / Distribution Business
 Organization of Overseas Division 2. Overseas Business

※ As of July 2018 / (Persons)

Organization

Global Business
Development Division (217) Nuclear Energy
Business Division (167)
• Global Business Management Dept. (45) No. of
Head-
• Global Business Development Dept. (54) Employees • Global Nuclear Project Dept. (124)
quarters • UAE Nuclear Project Dept. (43)
(384)
• Global New Business Dept.
• Global Power Generation Engineering Dept.
(64)
606
(54)

Renewable, T&D, New Energy Business

Overseas • KEPCO Japan • KEPCO North America • KEPCO Africa • KEPCO Europe UAE Nuclear
Offices • KEPCO China • KEPCO Middle East • KEPCO Southeast Asia Power Site
(14) (120)

• Philippines (Ilijan, Cebu, Malaya) • Jordan(Amman, Al Qatrana, Fujeij) • Nigria (Egbin)

Overseas • China(Shanxi, Liaoning, Neimenggu) • Saudi(Rabigh) • Vietnam (Nghi Son)
Affiliates • Japan (Chitose) • Mexico(Norte) • Austrailia(Bylong)
• UAE (Shuweihat) • USA (Colorado, California, Guam)
(88)
Expansion of Overseas Business 2. Overseas Business

Shuweihat S3 Gas-fired (BOO /

UAE 1,600MW)
Technical Consulting for the Maintenance 2010
1993 China of Guangdong Nuclear Power Plant
Mexico Norte II Gas-fired (BOO / 433MW)

1995 Philippines Malaya Heavy Fuel Oil (ROMM) 2012 Jordan Amman Diesel (BOO / 573MW)

1997 Philippines Ilijan Gas-fired (BOT / 1,200MW) Vietnam Nghi Son II Coal-fired (BOT / 1,200MW)
2013 Jordan Fujeij Wind Farm (BOO / 89MW)
Philippines SPC (M&A / 277MW)
2006 Nigeria Egbin (O&M)
China Wind Farm (BOO / 1,314MW)
U.S. Colorado Solar Farm (M&A / 30MW)
2007 China Shanxi Coal-fired (BOO / 9,135MW) Japan Chitose Solar Farm (BOO / 28MW)
2016
Thabametsi Coal-fired (BOO /
Al Qatrana Gas-fired (BOO / South Africa 630MW)
Jordan 373MW)
2008 China Kazuo Solar (BOO / 7MW)
Saudi Arabia Rabigh Heavy Fuel Oil (BOO / 1,204MW)
U.S. Guam Solar (BOO / 60MW)
Philippines Cebu Coal-fired (BOO / 200MW) 2017
Pulau Indah Gas-fired (BOO /
Barakah Nuclear (EPC / Malaysia 1,200MW)
2009 UAE
5,600MW)
2018 U.S. California Solar (M&A / 235MW)
3 Competitiveness
Spectrum of KEPCO’s Capabilities 3. Competitiveness

Multi-player covering Overseas branches

upstream to downstream
& subsidiariesrelations
Cooperative
Provides bundled services with about 150 power

2 Global
Network
utilities worldwide

1 All-round
Competencies Thermal
3 Power Plant
O&M

Partnership
5 with Reputable Transmission
EPC Contractors
4 & Distribution
O&M
Diverse generation mix
Cutting-edge O&M
technology

Robust partnership with

competitive global EPC Automated T&D system
contractors Advanced expertise in
O&M
All-round Competencies 3. Competitiveness

Vertically Integrated Operator

KOEN

WP
Creates Synergy
KOMIPO
with Generation
Companies EWP
& Nuclear
Subsidiaries KOSPO KEPCO E&C
Provides Bundled
KHNP KEPCO KPS
Services
KEPCO NF Ranging from
Generation to
KDN Distribution

Upstream to Downstream
Renewable 3. KEPCO’s Competitiveness

Operates Various Types of Power Plants

6 Renewable Power Plants

Asia China, Japan

Middle East Jordan

America U.S.(3) : Colorado, California

and Guam

U.S. / Colorado Solar Farm China / Inner Mongolia Wind Farm Japan / Chitose Solar Farm

Core Competencies

Abundant reference cases in Korea Domestic Renewable Power Plants (2017)

World-class efficiency and operation capability

Wind 137MW Waste 10MW

Financial advantage based on high credit rating

PV 120MW Biomass 160MW

Competitiveness in PV + ESS business model

Hydro 651MW IGCC 346MW

Risk management skill

New Energy Business 3. Competitiveness

Generation company
point of connection

Generation Transmission Distribution Retai

l

01 03 05 07
Frequency
FrequencyRegulation
Regulation High
HighTemp.
Temp. Big
BigData
Data
ESS
ESS Superconductor
Superconductor Platform
Platform K-BEMS
Smart Grid
GridStation

 Total Capacity : 376MW(2017)  Demonstrates the largest capacity  Big Data Center (Sep. 2016)
 Analysis of transformer capacity &
 Cost saving : USD 79 million (154kV 600MVA (1km/Jeju)) economics of Renewable Energy
Sources  EMS model for
Inst
02 HVD 04 06 building(Renewables, ESS,
xGRID SCADA Smart City
City Sensors & Controllers)
CC  116 KEPCO offices

 Intelligent Power Grid Platform  500kV HVDC design technology  Naju Smart City Project(2015~2020)
 CIO 100 Awards (IDG), 1st in Korea  Operation : Jeju-Bukdangjin-Godeok  AMI for 22.5 million customers by 2020
 EVC(2,353 in 2017→12,500 in 2030)
 Transmission & Distribution 3. Competitiveness

T&D Loss Factor

T&D Loss Rate (%)
8.0
7.7
6.8
4.9
3.6

’1 ’1 ’1 ’1 ’1
7 5 5 5 5

Blackout per household

SAIDI* (minute/household·year)
99
60
59
9 23

’1 ’1 ’1 ’1 ’1
7 3 5 3
* SAIDI(Sysem Average Interruption Duration Index)
4

KEPCO has a world-class normal voltage hold rate of 99.99%

 Financial Capability 3. Competitiveness

Credit Ratings & Awards

S&P Credit Rating (2017) Moody’s Credit Rating (2017)

KEPCO AA KEPCO AA
EDF A- ENGIE A2
ENEL BBB+ E.ON A3
E.ON BBB ENEL Baa2

Global Utility Company (Forbes) Successful Project Financing & Award

No. 1
 Norte II Combined cycle powerNo.
plant(2011)
1
Forbes
Global 2000 No. 2 No. 4
- PF, Latin America Power Deal of the Year
 Rabigh Heavy Fuel Oil power plant(2016)
(Sales, profit, asset, market price)
’17 ’16 ’15 - Refinancing, Deal of the year(IJ Global)
 Fujeij wind farm (2016)
- PF, Deal of the year(IJ Global)
 Nghi Son II Coal-Fired power plant(2018)
Appendix 1

Overseas Project Overview

Renewable (Solar & Wind)
Solar

Country Name Region Capacity Structures COD Sponsors

Acquire & KEPCO(50%)

USA California 235MW Aug. 2016
Operate COPA (50%)

Dec. 2019 KEPCO(70%)

USA Guam 60MW BOO
(expected) LG CNS (30%)
Acquire & KEPCO(50.1%)
USA Colorado 30MW Apr. 2012
Operate COPA Fund (49.9%)
KEPCO (80.1%)
Japan Chitose 28MW BOO Jul. 2017
Energy Product (19.9%)

KEPCO(40%)
China Gansu 7MW BOO Dec. 2017
China Datang Corp.(60%)

Wind

Country Name Region Capacity Structures COD Sponsor

89.1MW Jan. 2019

Jordan Fujeij BOO KEPCO (100%)
(expected)

May. 2009 KEPCO(40%)

China Gansu 1,017MW BOO
Jun 2010 China Datang Corp.(60%)
Transmission & Distribution
Project
Country Project Type Owner
Scope of Work Period
’16.
Dominican Rep. EPC CDEEE Distribution line 2,220km, Pole 9,585ea, Tr. 1,780ea, AMI 60,000ea
9. ∼’ 18.10.
’18.10. ∼’20 .
Dominican Rep. EPC CDEEE Distribution line 3,042km, Pole 8,969ea, Tr. 1,570ea, AMI 70,000ea
3.
’16. 3. ∼’ 19.
Bhutan EPC BPC Construction of 220kV Intelligent Indoor GIS Substation
6.
’11. 2. ∼’ 15.
Kazakhstan EPC KEGOC Rehabilitation of 500kV & 220kV 17 substations
1.
’11.
Kazakhstan EPC KEGOC 220kV Transmission line 325km
3. ∼’12 .10.
’11.11. ∼’ 15.
India EPC BPC Distribution line 8,500km, Pole 58,700ea, Tr. 2,160ea
3.
Cambodia ’15. 2. ∼’19 .
Consultancy EDC Distribution line 2,110km, Technical Support, Audit
7.
’18. 6. ∼’21 .
Myanmar Consultancy MOEE Distribution line 8,000km, Technical Support, Audit
6.
’17.
Philippines Consultancy KIAT Voltage Upgrade of 2 Distribution lines
5. ∼’18 .12.
’18.10. ∼’23 .
Jamaica Consultancy EWP Enactment of Procedures, Training Program, Technical Support
9.
’14.11. ∼’19 .1
Botswana Consultancy BPC 220kV Transmission line 80km, 220kv substations
1.
’15.
Pakistan Consultancy NTDC 765kV Transmission line 250km
3. ∼’18 .10.
’11.
Bangladesh Consultancy PGCB 400kV Transmission line 400km, 2 Substations
4. ∼’18 .10.
New Energy

Country Project Type Project Scope of Work Period

Owner
Greenhouse Gas Reduction based on the Clean Development ’18. 6.~’21.
Myanmar CDM KEPCO 6.
Mechanism
’17.12.~’18.
Sri Lanka AMI CEB Pilot Project for AMI with 1,000 meters, DCUs, HES and MDMS 10.

’17.11.~’18.1
Kazakhstan GIS AES Pilot Project for the GIS based Distribution Management System 0.

’18. 6.~’19.
UAE BEMS ADDC BEMS Project for the Energy Ministry Building in Abu Dhabi 1

’15.
Nigeria GIS Kenesco Technical Audit, Distribution Assets Mapping on the GIS DB 9.~’18.12.

’18.
Tanzania BEMS Tanesco Build Demand Management System with Direct Control System 5.~’19.12.

Three Eco-friendly Energy Town with 250kW PV, Diesel 30kW, ESS ’17.
Ethiopia MG EEU 6.~’18.12.
250kW/1MWh
’18.
Barbados BEMS EDB Localization of K-EMS and BEMS for the Two Public Buildings 5.~’20.10.

’18.
Ecuador MG MEER San Cristobal MG Project with 1MW PV, ESS 1.4MWh, PCS 1MW, EMS 5.~’20.12.

’17.
Guam ESS consulting LG CNS Interconnection Design, Commissioning Test and O&M for the ESS System 9.~’18.10.