▲ Accelerates RE100 initiatives by expanding the private sector renewable energy PPA ecosystem, from individuals to large-scale operators

▲ Leads the Korean eco-friendly energy transition through strategic energy distribution based on its power generation business expertise

Hyundai E&C is revitalizing the renewable energy Power Purchase Agreement (PPA¹⁾) ecosystem through a strategic energy distribution approach that diversifies the supply of renewable energy.

Hyundai E&C recently announced that it signed a Memorandum of Understanding for the Expansion of Photovoltaic Power Plant PPA Supply with the Korean Photovoltaic Industry Association (KOPIA) and Good News Energy at its headquarters in Gye-dong, Jongno-gu.

The signing ceremony was attended by key figures, including Lee Dong-hoon, Senior Vice President of the Development Business Division at Hyundai E&C; Kwak Young-joo, Chairman of the Korean Photovoltaic Industry Association; and Kim Jong-kyu, CEO of Good News Energy. The three parties agreed to actively cooperate to promote the stable sale of photovoltaic-generated electricity and the utilization of platform-based PPAs.

The Korean Photovoltaic Industry Association, established in 2020 to protect the rights of domestic photovoltaic power producers, is composed of members who own small- to medium-sized photovoltaic power plants. Good News Energy is a subsidiary of the energy IT company 60Hertz, a strategic partner of Hyundai E&C, and has launched Korea's first Renewable Energy 100 (RE100²⁾)-dedicated renewable energy trading and compliance management service platform.

Under this agreement, ▶the Korean Photovoltaic Industry Association will recruit power producers from its member companies, ▶Good News Energy will automate contracts, settlements, and monitoring through its digital platform, and ▶Hyundai E&C will support demand-side matching, operations, and financing. Whereas existing PPAs have been centered on large-scale power producers, this agreement is being lauded for dramatically lowering the entry barrier to the PPA market by enabling, for the first time in Korea, even small-scale operators to easily and conveniently participate in power trading.

In addition, last month, Hyundai E&C also signed a strategic partnership with Top Solar, one of Korea's leading photovoltaic EPC companies. Top Solar, which boasts the largest track record of constructing photovoltaic power plants in Korea, is expanding its business scope to include energy storage systems (ESS) and offshore wind power. This partnership will entail mutual cooperation across the entire renewable energy value chain, from PPAs to business development, EPC, operations and maintenance (O&M), and investment.

A Hyundai E&C official stated, “Hyundai E&C is expanding the base of renewable energy suppliers, from global operators like our UK joint venture, Glenmont D&D Solar Holdings, to small-scale operators through our agreement with the Korean Photovoltaic Industry Association.” The official added, “Moving forward, we will contribute to diversifying the Korean PPA market and discovering new business models by expanding our competitive alliances with partners like Top Solar, going beyond simple supply and demand matching.”

Since entering the power trading business in 2023, Hyundai E&C has been supporting the renewable energy transition of major Korean companies, including the Hyundai Motor Group affiliates, based on its accumulated expertise in power plant construction and operation. Notably, the company has drawn market attention by pursuing PPA contracts totaling over 1GW. These efforts include the launching and development of Korea's first IT platform for automated power trading and a Virtual Power Plant (VPP) service with 60Hertz as well as the Energy Self-Sufficiency Infrastructure Construction and Operation Project at the Incheon Namdong Industrial Complex. Looking ahead, Hyundai E&C plans to further expand the private sector-led, voluntary PPA ecosystem to not only achieve its RE100 goals but also to advance the nation's energy infrastructure.

1) A power trading contract concluded for a fixed term between a power producer and an electricity consumer.

2) A global initiative in which companies commit to sourcing 100% of the electricity they use from renewable energy.