Hyundai Engineering & Construction Establishes Renewable Energy Supply Network through PPA Agreement

Contract Signed with Glenmont D&D Solar Holdings
"Strengthening Position in the Private Electricity Trading Market"

Hyundai Construction is solidifying its position in the private electricity trading market by securing a renewable energy supply chain.

Executive Director Cha Young-il of Hyundai Engineering & Construction Infrastructure Investment Development Office (left) and CEO Jung Joo-hyung of Glenmont D&D Silla Holdings are taking a commemorative photo after the Power Purchase Agreement (PPA) signing ceremony on the 11th. / Photo by Hyundai Engineering & Construction

On the 12th, Hyundai Construction announced that it signed a Power Purchase Agreement (PPA) for solar renewable energy supply with Glenmont D&D Solar Holdings at its office in Gye-dong, Jongno-gu, Seoul. The agreement involves receiving Renewable Energy Certificates (REC) from Glenmont D&D Solar Holdings until 2048.

This contract was conducted in the form of a Virtual Power Purchase Agreement (VPPA), which trades RECs without physical power supply from renewable energy power plants. Through this, Hyundai Construction can provide more power over a long period to domestic companies such as Hyundai Mobis that have signed renewable energy purchase agreements.

Hyundai Construction also self-assessed that being selected as the first domestic partner of the joint venture of Europe’s largest renewable energy specialized fund company has become an opportunity to further strengthen its position in the domestic private electricity trading market.

Glenmont D&D Solar Holdings is a joint venture established last year by Glenmont Partners, a UK-based renewable energy investment firm, and SK Etecnics for the purpose of developing renewable energy projects in Korea. Key officials including Young-il Cha, Executive Director of Hyundai Construction’s Infrastructure Investment Development Office, and Ju-hyung Jeong, CEO of Glenmont D&D Solar Holdings, attended the signing ceremony.

A Hyundai Construction official said, "This contract is the result of recognition of our excellent financial soundness and capabilities as a professional electricity brokerage business operator. We will expand the introduction of renewable energy through PPAs for domestic companies and establish a business structure that allows both power producers and consumers to secure stable profits, accelerating the achievement of RE100 and carbon neutrality."

Meanwhile, since officially announcing its entry into the electricity brokerage business in September last year, Hyundai Construction has been supporting the renewable energy transition of major domestic companies, including group affiliates such as Hyundai Motor Company, Kia, and Hyundai Mobis.