SK Innovation E&S Collaborates to Promote 'Power Purchase Agreements' for Domestic RE100

Three-Way MOU Signed with JB Financial Group and Innergen
Launch of PPA Loan Products for Power Producers

SK Innovation E&S is partnering with JB Financial Group and carbon-specialized consulting firm Innergen to support domestic companies' 100% renewable energy (RE100) commitments by expanding renewable energy power purchase agreements (PPAs).

SK Innovation E&S, JB Financial Group, and Innergen signed a Memorandum of Understanding for the activation of RE100 on the 14th at the SK Seorin Building in Jongno-gu, Seoul. (From left: Choi Jin-seok, Head of External Cooperation at JB Financial Group; Lee Jin-mo, Head of Renewable Energy Business Planning at SK Innovation E&S; Cheon Seong-moon, CCO of Innergen) Photo by SK

On the 15th, SK Innovation E&S announced that it signed a tripartite memorandum of understanding (MOU) with JB Financial Group and Innergen at the SK Seorin Building in Jongno-gu, Seoul, to activate the domestic RE100 market and promote carbon neutrality among private companies. Under this agreement, the three companies will collaborate to launch PPA-dedicated financial products for solar power producers, interlink PPA contracts with loans, and jointly promote and consult on PPAs, thereby establishing a private-led cooperative system to expand PPAs.

JB Financial Group’s Jeonbuk Bank and Gwangju Bank will develop and provide the first PPA-dedicated facility-backed loans in the primary financial sector to support private RE100 implementation, based on advice from SK Innovation E&S and Innergen. Jeonbuk Bank will offer this through its existing 'JB Green Biz Loan' for solar power project facility funds, while Gwangju Bank will newly launch the 'Gwangju Bank RE100 Solar Loan,' a solar-backed loan.

Until now, solar power producers could only obtain facility-backed loans under the Renewable Portfolio Standard (RPS) contracts, making it difficult to secure loans for PPA contracts. The 'JB Green Biz Loan' from Jeonbuk Bank and the 'Gwangju Bank RE100 Solar Loan' open participation opportunities in the private RE100 market for existing solar power producers and are expected to become exemplary cases contributing to securing regional competitiveness in the Honam area, where solar power facilities are concentrated.

SK Innovation E&S will actively promote and facilitate the use of these products by power producers and support PPA contract signings. Additionally, it will cooperate to ensure the stable supply of renewable energy for achieving carbon neutrality within JB Financial Group affiliates.

Innergen will provide promotion and education to power producers to expand PPAs and offer expert consulting to support JB Financial Group affiliates in achieving carbon neutrality and RE100 goals.

Lee Jin-mo, Head of Renewable Energy Business Planning at SK Innovation E&S, said, "We expect this agreement to activate private solar power producers’ participation in the renewable energy PPA market." He added, "We will continue efforts to secure PPA supply resources amid the domestic market environment where renewable energy is insufficient."