LS Electric-Samsung C&T, Global Renewable Alliance... First Step with 500MW ESS in the US

Yangsa Collaborates on Technical Skills and Development Expertise to Create Synergy

LS Electric announced on the 25th that it will promote a global renewable energy business together with Samsung C&T Corporation's trading division.

On the same day, the two companies signed a Memorandum of Understanding (MOU) for joint global new business development at the Samsung Headquarters Building in Jung-gu, Seoul, attended by Koo Ja-kyun, Chairman of LS Electric, Kim Jong-woo, President and Chief Operating Officer (COO) of LS Electric Power CIC, and Lee Jae-eon, CEO of Samsung C&T Corporation's trading division.

As the first step of collaboration, the two companies selected a 500MW-scale Battery Energy Storage System (BESS) project being developed by Samsung C&T in the United States. This project is capable of supplying electricity to approximately 100,000 households in the U.S. for one year. Samsung C&T, which is responsible for the initial development, plans to jointly carry out this project with LS Electric to maximize its value.

The two companies will strengthen cooperation by dividing roles. LS Electric will handle technical areas such as providing power solutions, while Samsung C&T will be responsible for development areas including obtaining various permits and approvals. Through this, they aim to create synergy by combining their expertise and know-how.

A panoramic view of the Botley ESS power plant in the UK, completed last month by LS Electric. Provided by LS Electric

Through this cooperation, LS Electric plans to expand its Energy Storage System (ESS) business to North America following Japan and Europe, and leap forward as a global comprehensive ESS solution specialist. As the spread of renewable energy increases the importance of grid connection stability, LS Electric will accelerate its entry into the U.S. power infrastructure market by leveraging its total solution competitiveness spanning from transmission and transformation to distribution.

Samsung C&T is intensifying its expansion of the U.S. solar power business and is shifting from a model focused on selling existing business rights to a diversified business model including joint development to enhance competitiveness. Based on its experience in establishing renewable energy complexes in Ontario, Canada, Samsung C&T has been focusing on solar power development in the U.S. since 2018 and currently holds solar and ESS development projects totaling 17.4GW. Additionally, it is expanding its eco-friendly business areas through market entry into Australia in 2022 and the establishment of a renewable energy corporation in Germany last year.

LS Electric entered the local ESS market by signing an MOU with Japan's Kyudenko and completed its first ESS power plant, the Botley Power Plant, in the United Kingdom. It is expanding its global renewable energy business area by also securing the Widow Hill BESS project and others.