Korea Electric Power Corp (Kepco) and Hanwha Energy Corp have been awarded contracts to build separate solar farms equipped with energy storage in the US territory of Guam.

Kepco and Hanwha have signed contracts with the Guam Power Authority to build the 60 MW solar farms, which are due to start operating at the end of 2019.

Kepco reported that it has signed a $200 million deal to build a 60 MW solar farm and 42 MWh energy storage unit in Mangilao, northern Guam. Hanwha will build a solar farm and 65 MWh energy storage facility in Guam’s southern region of Dandan.

Kepco will work with LG CNS Co., a subsidiary of South Korean firm LG Group, to design and build the facility. The two firms will also manage the facility for 25 years.

Hanwha will also operate the solar farm and energy storage facility in Dandan for 25 years. Its sister company. Hanwha Q Cells, will supply the solar modules for the solar farm.

Guam is currently highly dependent on fuel oil and diesel imports for its power sector, and has set a 25 per cent renewable energy portfolio goal by 2035.