FROM: Daesung Group

Daesung Group will Provide 
New & Renewable Energy System to Kazakhstan

- Execute a pilot project in Kazakhstan in cooperation with KOICA
- Provide electricity and clean drinking water to off-grid areas through the installation of 
  SolaWin (Solar-Wind Hybrid System)

SEOUL, South Korea. May 10, 2010 - Daesung Group will expand its SolaWin (solar-wind hybrid system) project to Kazakhstan. The company has already established the SolaWin system in Mongolia and has succeeded in supplying electricity and drinking water to the local community.

Daesung Group (Chairman, Younghoon David Kim) announced that its major subsidiary Daegu City Gas Co., Ltd. has been selected as a partner for a pilot public-private partnership (PPP)  project in Kazakhstan by Korea International Cooperation Agency (KOICA). Proposed by Daegu City Gas, this pilot PPP project is based on delivering new and renewable energy with the purpose of building a green village in Kazakhstan.

In cooperation with KOICA, Daegu City Gas will install its SolaWin system in a rural area of Kazakhstan, where people are still living without electricity. The SolaWin facility will generate emission-free electricity and this will be distributed to local residents. Setting up an underground water-pumping system, Daegu City Gas expects to supply not only clean drinking water but also deliver a better quality of life and improve the sanitary conditions of the community. Furthermore, Daegu City Gas will create an energy self-sufficient village by building passive houses  that have energy conservation technology.

This 2-year project will cost $ 1.5 million (KRW 1.7 billion), and will begin in 2010. The project includes installing SolaWin system (50kW), which has been developed and tested by Daesung Institute for Clean Energy, and constructing an administration building that will serve as a gathering place for community residents. Especially for this administration building, Daesung Group will adopt passive house building technology to minimize energy use.

In addition, utilizing this SolaWin project as momentum, Daegu City Gas will promote expanding and developing its business in various fields of new & renewal energy in cooperation with the Department of Mineral & Energy Resource in Kazakhstan, local partners and the Kazakhstan embassy in South Korea.

Daesung Group’s SolaWin project in Kazakhstan is very meaningful because it will provide a springboard for Daesung Group’s new and renewable energy business to advance into the central Asia region, including Mongolia and Kazakhstan. Daesung Group further plans to promote its overseas SolaWin sales, cooperating with KOICA and other NGO institutions.

Daesung Group developed a recognized solar-wind hybrid system called SolaWin in 2003 and successfully tested the system in Naran, Mongolia. Through the installation of SolaWin, Daesung Group completed the Green Eco-Energy Park (GEEP) project in June 2009. GEEP, powered by SolaWin, enables the piping of underground water on 815 acres of land in Ulaanbaatar, Mongolia, helping to prevent the region’s desertification. In addition, Daesung Group expects to complete its ‘Mandakhsoum project’ in Mongolia by this June. Once this project is completed, local residents in Mandakhsoum district will benefit from the provision of power and access to clean drinking water.

As one of the major sponsors of the 2013 WEC World Energy Congress in Daegu, Daesung Group will focus not only its primary business, city gas service, but also develop a variety of eco-friendly projects around the world. Daesung Group hopes to upgrade its company value and position itself as a global eco-friendly company.

The general power transmission system in Kazakhstan is antiquated. Due to old power plants from the Soviet era, Kazakhstan has failed to provide sufficient electricity for local communities. Kazakhstan supplies 70% of its power through coal and 14.6% through water. Remaining sources area oil, natural gas, etc. Also, residents in rural areas are exposed to many waterborne diseases due to unsanitary drinking water.


* Public-Private Partnership (PPP) : Partnership between the government and private companies. It is usually designed in order to support the developing countries. Under PPP, the government helps companies initiate their aid program for developing countries using their technology, capital, and knowhow.

* Passive House : An energy efficient building. The building style typically includes a seamlessly insulated shell and a refined ventilating and heat recovery system. It is capable of providing ultra-low energy consumption. The passive house needs a tenth of the energy required for a regular building, consuming just 1.5 liters of heating oil per square meter.