Lotte Department Store Installs Solar Power at Premium Outlet Paju Location: "Supplying Renewable Energy"

First in the Retail Industry to Introduce Renewable Energy Power Purchase Agreement (PPA)
Pilot Operation with 1.1 MW Capacity
Plans to Secure a Total of 266 MW in PPA Contracts by 2030

Lotte Department Store announced on October 20 that it has become the first in the domestic retail industry to pilot the introduction of a Renewable Energy Power Purchase Agreement (PPA) as part of its goal to achieve carbon neutrality by 2040.

Solar power facility installed at Lotte Premium Outlet Paju branch. Provided by Lotte Department Store

The adoption of the PPA is a core strategy to directly increase the proportion of renewable energy usage. Earlier this month, Lotte Department Store piloted the PPA model at its Premium Outlet Paju location. The company’s PPA model is a third-party PPA, brokered by Korea Electric Power Corporation (KEPCO). Although the associated costs are relatively high, the company explained that this method ensures stable power supply and is a more stable and efficient way to expand stores in the long term. In this arrangement, a power generation company supplies electricity produced by a 1.1 MW solar power plant to the KEPCO grid, and Lotte Department Store pays the PPA contract rate for this electricity instead of the standard industrial electricity rate.

With the introduction of the PPA, the Paju location has achieved a renewable energy usage ratio of 13%, including its existing 264 kW self-consumption solar power system. Annually, the total renewable energy generated through both self-consumption solar power and the PPA amounts to 1,851 MWh. According to the company, this is equivalent to reducing 863 tons of greenhouse gas emissions per year, planting 6,179 pine trees, or providing enough clean electricity to power 514 households in a 99-square-meter apartment for a year.

Building on the successful model established through the PPA pilot project at the Paju location, Lotte Department Store plans to accelerate its transition to renewable energy by securing a total of 266 MW in PPA contracts by 2030.

Kim Hyera, manager of the Premium Outlet Paju, stated, "The introduction of the PPA is a firm commitment to building a sustainable retail environment for future generations," adding, "We will continue to present a variety of ESG (Environmental, Social, and Governance) management models to achieve carbon neutrality."