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RE100 solution provided by Hyundai E&C, A construction company is brokering power?!

24 Apr 2024 0min 12sec

RE100 solution provided by Hyundai E&C, A construction company is brokering power?!

Did you know that power generated through renewable energy can be directly traded even between private companies? 


RE100 solution provided by Hyundai E&C A construction company is brokering power?!

Power Purchase Agreement (PPA), allowing even companies to trade electricity Did you know that power generated through renewable energy can be directly traded even between private companies? Power brokerage business that provides an environment that allows power to be traded more freely. Among these, business in which renewable energy is traded between companies is called Power Purchase Agreement. With the power trade market being partially opened to the private sector, as a power brokerage, Hyundai E&C is also expanding the PPA business that can contribute to the realization of carbon neutrality and energy conversion.

Why did Hyundai E&C start a power brokerage business? Global companies are voluntarily participating in RE100* campaign to counter climate crisis. Hyundai E&C is proceeding with PPA to provide a RE100 solution as means to join the effort. Hyundai Motor Group also is targeting to make a complete conversion to renewable energy by 2050. Hyundai E&C is supporting renewable energy conversion by entering into PPA with Hyundai Motor Company, Kia Motors, Hyundai Mobis and so forth and is expanding its scope of business even to major domestic companies. * RE100 (Renewable Electricity 100%): Global campaign that started voluntarily, stating to accommodate 100% of power used by a company through renewable energy.

What is the PPA business of Hyundai E&C? PPA trading method can be largely divided into On-Site PPA and Off-Site PPA. Direct PPA is called so because power from renewable energy is used directly*. How is Hyundai E&C proceeding with its PPA business? *Direct PPA: Method where the power generator and electricity consumer each supply and purchase through the renewable energy supplying business.

On-Site PPA Energy can be self-sufficiently provided in Namdong National Industrial Complex in Incheon! Last October, Hyundai E&C joined the ‘self- sufficient energy infrastructure construction and operation business’ led by the Korea Industrial Complex Corporation and is carrying out On-site PPA business to achieve energy independence. After constructing a photovoltaic power plant on the roof of the plant in the Namdong National Industrial Complex, a power trading system will operate to supply renewable energy to residing companies.

Off-Site PPA Renewable energy that can be observed even in sites of domestic automobile companies! At the end of last year, Hyundai Motor Company and Kia Motors entered into an Off-Site PPA agreement. Hyundai E&C is planning to provide 64MW photovoltaic renewable energy to world’s largest Ulsan plant of Hyundai Motor Company by 2025. This is said to have an impact of 23,000 sedans with 15,000km of annual mileage to be not emitting greenhouse gas for a year. Through this, the Group not only got close to achieving RE100 but Hyundai E&C could also further solidify its position in the domestic private power trading market.

Just a second, what if power from renewable energy cannot be supplied directly? Virtual Power Purchase Agreements (VPPA) There are companies that wish to achieve RE100 but cannot be directly supplied power from renewable energy as lessees of the building. At this point, this can be resolved with VPPA that is an acronym for Virtual Power Purchase Agreements. This is where only REC that is issued to the renewable energy power generator is traded. It is often used in US and Europe because RE100 can be recognized through this certificate without physical supply of power from renewable energy power plant. *REC (Renewable Energy Certificate): Certificate that proves that energy has been supplied through power generation of renewable energy such as photovoltaic. The company that purchases this will have the same effect as directly using renewable energy.

Domestic VPPA product launched! Hyundai E&C recently entered into PPA with Glennmont D&D Solar Holdings, a joint venture between Glennmont Partners, the largest European fund manager specialized in renewable energy, and SK Eternix to supply photovoltaic renewable energy. A stable renewable energy supply network was established through an agreement to be supplied with REC by 2048 through the VPPA method. Through this, Hyundai E&C provides REC that is supplied by Glennmont D&D Solar Holdings to domestic companies with sites that are difficult to get direct PPA, such as Hyundai Mobis. Power market, power, power generator, REC brokerage contract, supplier, RE100 demand company, electricity bill

Next generation power paradigm Maximizing efficiency of distributed renewable energy trading through virtual power plants Going forward, Hyundai E&C is aiming to operate the Virtual Power Plant (VPP) that manages renewable energy in an integrated manner. - Integrated management of the amount of renewable energy generated based on ICT - Management of big data such as power use pattern of power consumers/power plants and charge/discharge schedule of power storage device through cloud-based AI technology

Carbon neutrality solution Provider Against this backdrop, Hyundai E&C entered into a partnership with 60Hz that is focusing on development of VPP software and prediction of amount of power generated by renewable energy. For the first time in Korea, power trading automation IT platform will be developed and enhanced. - Provide function to automate settlement/contract/matching between clients and power generator - Provide financial/technology sector solution to power generators - Establish RE100 portfolio and track progress for clients


#Hyundai E&C#RE100#RenewableEnergy