GS Energy Signs PF Financing Agreement for RE100 Direct Power Trading

GS Energy held a signing ceremony for the "Rooftop Solar Power Generation Project MOU for Carbon Neutrality and Energy Transition" on the 9th. Yoon Young-jin, Executive Director of GS Energy (right), and Shin Jae-wook, Head of NH Investment & Securities IB2 Division (left), are taking a commemorative photo. Photo by GS Energy

Next Renewables Solution (NRS), a solar power generation subsidiary of GS Energy, has successfully secured funding for a direct power purchase agreement (PPA) with RE100 (100% renewable energy usage) consumers.

NRS, in which GS Energy and renewable energy solutions company Haezoom have invested 90% and 10% respectively, announced on the 9th that it signed a 20 billion KRW project financing (PF) agreement with KDB Infrastructure Asset Management and NH Investment & Securities on the 6th. Additionally, GS Energy signed a memorandum of understanding (MOU) with NH Investment & Securities on the 9th to expand future RE100 direct PPA projects.

This project will be conducted using an on-site direct PPA method. On-site direct PPA means that the solar power generator installs solar panels at the power consumer’s site and supplies electricity directly without going through Korea Electric Power Corporation’s transmission and distribution network.

On-site direct PPA is regarded as an effective carbon reduction method because it allows demand companies aiming for carbon neutrality to purchase renewable energy directly.

Through NRS, GS Energy plans to supply 18 MW of renewable energy to RE100 companies by next year and expand the business to 100 MW by 2026 by increasing its customer base pursuing carbon neutrality. A 100 MW solar power capacity can supply electricity to approximately 40,000 households annually.

A GS Energy official stated, "As global companies’ demands for RE100 compliance increase and domestic industrial electricity rates rise, preference for on-site direct PPA, which supplies renewable energy at a fixed price over a long period, is growing. GS Energy will continue to establish itself as a partner for demand companies’ carbon neutrality efforts."

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