LS Electric and Volvo Establish Solar Energy Management Solution... "First Step Toward RE100"

FEMS Implemented in 13 Buildings at Changwon Plant
Annual Electricity Cost Savings Expected to Reach 1.2 Billion KRW
5.8 GWh of Renewable Energy to Be Produced

LS Electric, in collaboration with Volvo Group Korea, has established an integrated energy management solution linked to solar power.

LS Electric and Volvo Group Korea announced that they have completed the construction of an integrated energy management solution (FEMS), which includes solar renewable energy, at the Volvo Group Korea Changwon plant to reduce carbon emissions. The completion ceremony was held on the 22nd.

The ceremony at the Changwon plant was attended by Hong Seokcheol, CEO of Volvo Group Korea, Park Kangseok, CEO of Volvo Trucks Korea, Park Woobeom, Executive Director of LS Electric, and other officials from both companies. They inspected the operation status of the facilities and took the first step toward achieving RE100 (100% renewable energy).

In July 2023, Volvo Group Korea established an ESG (Environmental, Social, and Governance) system to reduce carbon emissions and entered into a business agreement with LS Electric to pursue RE100, in response to the European Carbon Border Adjustment Mechanism.

Photo by Hong Seokcheol, CEO of Volvo Group Korea (left), and Park Woobeom, Executive Director of LS Electric (right), taken on the 22nd after the completion ceremony at the Volvo Group Korea Changwon plant. LS Electric.

Under this agreement, the newly completed solar facility at the Changwon plant was installed on the rooftops of 13 buildings, covering a total area of 15,556 square meters (approximately 4,700 pyeong). It is expected to generate up to 5.8 GWh of renewable energy annually. The renewable energy produced at the Changwon plant will partially supply the factory's electricity needs, while the remaining power will be stably sourced from external power generation facilities through power purchase agreements (PPA).

Additionally, with the smart management system FEMS, which is designed to improve energy efficiency, the company can monitor the power usage of each facility in real time and achieve optimal energy operation efficiency. For the first time in Korea, the plant has also implemented a self-consumption solar power system that directly receives ultra-high voltage (154kV) electricity, prioritizes the use of self-generated power, and allows surplus electricity to be traded in the power market.

Through these initiatives, Volvo Group Korea expects to reduce annual electricity costs by 1.2 billion KRW and replace 5.8 GWh of electricity per year with renewable energy. Starting next year, the company anticipates achieving an RE (Renewable Energy) rate of 16%.

In response to the increasingly severe climate crisis, Volvo Group has set a goal to achieve a carbon-neutral value chain across all business areas by 2040. The company has decided to gradually transition all electricity used in domestic production sites to 100% renewable energy. Accordingly, Volvo Group Korea, in partnership with LS Electric, plans to increase its renewable energy usage rate from 16% this year to 88% by 2028, and to achieve 100% renewable energy for all electricity used at the Changwon plant starting in 2029.

Hong Seokcheol, CEO of Volvo Group Korea, stated, "The solar facility at the Changwon plant is a practical example of our efforts to combat climate change and achieve carbon neutrality. We will continue to lead sustainable manufacturing innovation centered on the Changwon plant while pursuing our RE100 goals."

Park Woobeom, Executive Director of LS Electric, added, "Due to power self-sufficiency imbalances, saturated transmission and distribution networks, stricter regulations, rising electricity rates, and increasing demands for carbon neutrality, energy transition is not a choice but a necessity. LS Electric will contribute to Volvo Group Korea's sustainable management and energy cost reduction by integrating advanced data and high-level technologies into energy efficiency solutions like FEMS, and by providing investment, operation, and management services."

This content was produced with the assistance of AI translation services.