BGF Retail Completes Solar Power Plant at Jincheon Central Logistics Center

BGF Retail CDC Solar Power Plant View. (Photo by BGF Retail)

[Asia Economy Reporter Seungjin Lee] BGF Retail, which operates the convenience store CU, announced on the 1st that it has completed a solar power plant at the Chungbuk Jincheon Central Distribution Center (CDC) and has started selling electricity from this month.

Although the convenience store industry has installed solar power facilities at business sites such as stores and distribution centers for energy saving purposes, this is the first case of establishing a large-scale power generation facility to produce electricity and generate profits.

BGF Retail installed a total of 2,400 solar modules on approximately 9,000㎡ (about 2,700 pyeong) of unused rooftop space at the Central Distribution Center. The design and construction were undertaken by Hanwha Q CELLS, a global leader in solar technology.

This setup can produce up to 1,200 megawatt-hours (MWh) of electricity annually. This amount of power is enough for about 1,400 households for one year and will be sold to Korea Electric Power Corporation and the Korea Power Exchange going forward.

The reason BGF Retail established the solar power plant using its business infrastructure for the first time in the industry is that it can generate additional revenue by efficiently utilizing company resources and actively participate in the government's eco-friendly energy policies, thereby enhancing social and economic benefits.

BGF Retail's solar power plant project was carried out over approximately six months. After selecting the contractor at the end of last year, the company prepared for design and permits starting in January this year, and added solar power generation as a new business purpose through an amendment to the articles of incorporation at the regular shareholders' meeting in March.

Construction began in April, and by the end of June, final safety inspections and test operations were completed. Full-scale electricity production started in July.

The BGF Retail Central Distribution Center, where the solar power plant was installed, is a logistics hub center opened in November 2018 with an investment of about 150 billion KRW to strengthen CU's logistics services. It has a site area of 27,196㎡ (about 8,200 pyeong) and a total floor area of 58,446㎡ (about 17,680 pyeong).

Song Jaeguk, head of BGF Retail's SCM division, said, “The CDC solar power plant is a new business model, and we plan to expand it to about 30 distribution centers nationwide after comprehensively reviewing its economic value. The profits gained will be reinvested in the convenience store business to enhance the operational competitiveness of franchise stores.”

Meanwhile, BGF Retail has designated eco-friendliness as a key management keyword starting this year and is making company-wide efforts such as operating green stores, creating urban forests, and providing Green Save services. Last month, it became the first in the industry to be designated as the 600th Green Store by the Ministry of Environment and received ISO 14001 certification for its international standard environmental management system.