Direct Renewable Energy Electricity Trade Without KEPCO
SK E&S to Supply 5MW to Amore Daejeon Plant from Q4
"Will Increase Supply Transactions for RE100 Companies"
[Asia Economy Reporter Moon Chaeseok] For the first time in Korea, a case of direct trading of renewable energy power between private institutions without involving Korea Electric Power Corporation has emerged. The protagonists are SK E&S, leading SK Group's energy business, and Amorepacific, a member of RE100.
On the 22nd, SK E&S announced that it signed a 'Renewable Energy Direct Power Purchase Agreement (PPA)' with Amorepacific at Amorepacific's headquarters in Yongsan-gu. The signing ceremony was attended by Choo Hyung-wook, CEO of SK E&S, Lee Dong-soon, CEO of Amorepacific, and key officials. A PPA refers to a contract for direct power trading between an electricity supplier and a company wishing to purchase electricity. It is evaluated as an efficient means of implementing RE100 by encouraging companies to directly purchase and use the renewable energy they need, thereby contributing practically to the expansion of renewable energy and reduction of greenhouse gases.
This is the first time a renewable energy direct PPA contract has been signed in Korea. SK E&S plans to supply 5 MW of renewable energy power annually for 20 years starting from the fourth quarter to Amorepacific's Daejeon Daily Beauty plant. Amorepacific manufactures famous brand products such as Ryo, Mise-en-sc?ne, and Happy Bath at the Daejeon plant.
Starting with this contract, SK E&S announced plans to directly supply renewable energy not only to group companies that have declared RE100 implementation such as SK Hynix, SK Telecom, and SK IE Technology (SKIET), but also to domestic companies pursuing membership. They intend to lead the renewable energy PPA market itself in the future. SK E&S is already the largest private renewable energy operator, running 150 MW of solar and wind power projects domestically. They are also developing over approximately 3 GW of renewable energy projects both domestically and internationally. Amorepacific aims to achieve RE100 early across all its business sites by 2025. This contract is seen as a milestone for promoting RE100. The greenhouse gas reduction effect at the Daejeon plant is estimated to be about 2,700 tons annually.
CEO Choo said, "Since signing a business agreement with Amorepacific for RE100 implementation last December, the two companies have closely cooperated to achieve results in a short time," adding, "We will strive to contribute to national greenhouse gas reduction in the mid to long term by supporting domestic and international companies in achieving RE100." CEO Lee also said, "By signing the first renewable energy direct supply contract implemented in Korea, we have been able to enhance the eco-friendliness of our production products," and added, "We plan to expand carbon neutrality efforts throughout the entire process including raw materials and waste."
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