Project Implementation Agreement Signing at City Hall at 2 PM on the 11th... Mayor Park and Representatives of Partner Organizations to Attend
Private Investment of 700 Billion KRW by 2027, Installation of 380MW Solar Power Facilities to Secure Renewable Energy
The city of Busan will sign a business agreement for the promotion of the 'Busan Industrial Complex Rooftop Solar Project' with eight organizations at 2 p.m. on the 11th in the city hall video conference room.
The nine organizations participating in the agreement are the city government, Busan-Jinhae Free Economic Zone Authority, Innopolis Foundation, Korea Energy Agency, Hangang Asset Management, Busan Green Industrial Complex, Busan Jeonggwan Energy, Daebo Information & Communication, and Uclick.
At the signing ceremony, Mayor Park Hyungjoon and the heads of all participating organizations will be present to sign the agreement in person.
The 'Busan Industrial Complex Rooftop Solar Project' is a project to secure renewable energy by installing solar power facilities with a total capacity of 380MW on the roofs and unused spaces of 700 companies in the Mieum and International Logistics Industrial Complexes. The project period is until 2027, with a total investment of 700 billion KRW, fully funded by private capital.
The project is expected to reduce annual greenhouse gas emissions by 220,000 tons (2.4% of the city's 2030 reduction target), generate 500 GWh of electricity annually (improving the renewable energy self-sufficiency rate by 2%), create 5,000 jobs, and yield annual power generation revenue of 130 billion KRW.
Participating companies will receive rental income based on the amount of electricity generated.
The project was planned to help local companies respond to the new climate regime for overcoming the climate crisis, accelerate the low-carbon transformation of industrial complexes, and convert them into sustainable growth-oriented complexes.
This agreement was prepared to confirm the commitment to the promotion of the 'Busan Industrial Complex Rooftop Solar Project' and to define the roles of each participating organization.
Through the agreement: ▲The city and industrial complex management organizations (Busan-Jinhae Free Economic Zone Authority, Innopolis Foundation) will provide administrative support; ▲The Korea Energy Agency will offer energy policy consulting and institutional improvement support; ▲Hangang Asset Management will be responsible for financing; ▲The power generation corporation (Busan Green Industrial Complex) will operate the project; and ▲Busan Jeonggwan Energy, Daebo Information & Communication, and Uclick will handle company recruitment, construction, and other project operations.
Going forward, the participating organizations will form a working-level council, discuss issues such as succession of solar facilities, response to KEPCO’s power grid, and support measures for industrial complexes (companies), and then implement a rooftop solar business model optimized for Busan’s industrial complexes before proceeding with the project.
If the project is successfully promoted, the plan is to expand solar power facilities to all 39 industrial complexes in Busan, increasing the total capacity to 2,800MW (with a total project cost of 5.4 trillion KRW).
The city expects that if this project is linked with the distributed energy specialized zone, which the city is currently working to designate, it will help reduce electricity costs for local companies in industrial complexes, respond to RE100 and the European Union’s (EU) carbon border tax, and ultimately strengthen the competitiveness of local companies in the era of carbon neutrality.
In particular, the city plans to support the simultaneous growth of energy-related industries, such as the operation of virtual power plants (VPP) integrating small-scale power stations and the development of related industries utilizing surplus renewable energy (green hydrogen, energy storage systems (ESS), etc.), to establish a new energy industry ecosystem centered on Busan. By expanding the project to all industrial complexes in Busan, the city aims to realize a sustainable carbon-neutral economy.
Son Jin, CEO of Hangang Asset Management, the company that proposed the project, said, "Hangang Asset Management is very interested in solar power projects, and we believe that expanding renewable energy will contribute to the development of Busan’s economy. We are determined to make this project a successful case of public-private partnership among industrial complexes nationwide."
Mayor Park Hyungjoon stated, "This project to create a low-carbon green industrial complex and foster new energy industries by utilizing rooftop solar renewable energy within industrial complexes will further enhance Busan’s status as a ‘global hub city’. The city will provide full support so that the advent of the carbon-neutral era to overcome the climate crisis becomes a new opportunity, rather than a crisis, for Busan companies. We ask for the active participation of companies located in the industrial complexes in this project."
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