Hyundai Engineering & Construction Signs Solar Power Supply Agreement with Top Solar Equivalent to One Nuclear Power Plant

1.5GW Scale: Korea’s Largest Direct PPA Between Two Companies
Sequential Contracts Through 2028, Over 20 Years of Long-Term Supply

Hyundai Engineering & Construction has signed a renewable energy power supply agreement with Top Solar, the leading solar power construction company in South Korea, for a total capacity of 1.5GW. This is the largest direct power purchase agreement (PPA) between two companies in the country, and is expected to open a new power procurement channel for domestic companies aiming to achieve RE100 (100% renewable energy usage).

Hyundai Engineering & Construction announced on January 20 that it recently held a signing ceremony at Top Solar's headquarters in Buk-gu, Gwangju, and agreed to sequentially sign solar power supply contracts until the end of 2028. The total installed capacity of solar power that Top Solar will supply to Hyundai Engineering & Construction is 1.5GW, equivalent to the output of a large nuclear power plant. The contract period for each power generation project is over 20 years. Through these long-term contracts, companies with power demand now have a stable foundation to secure renewable energy.

Baek Sanghyun, Head of Infrastructure Investment Development at Hyundai Engineering & Construction (third from right), and Oh Hyungseok, Chairman of Top Solar Group (fourth from right), are taking a commemorative photo with officials after signing a renewable energy power supply agreement on the 19th at Top Solar headquarters in Buk-gu, Gwangju. Hyundai Engineering & Construction

The collaboration between the two companies has been in full swing since last year. In June 2023, Hyundai Engineering & Construction signed a strategic partnership with Top Solar and has since worked together across the entire renewable energy value chain, including business development, engineering, procurement and construction (EPC), operation and maintenance (O&M), and investment. This latest agreement expands on the trust built so far, securing a concrete volume of power supply.

Large-scale power supply cooperation exceeding 1GW is only possible when both the supplier and the buyer have strong business capabilities. Top Solar, as the number one company in the domestic solar power construction sector, has demonstrated competitiveness in development and supply, while Hyundai Engineering & Construction is expanding its presence in the renewable energy distribution business based on its expertise in power plant construction and operation.

A Hyundai Engineering & Construction official stated, "This agreement is a case of private sector cooperation that enhances trust in the domestic renewable energy power supply market, which is centered on solar power, and provides a practical solution for stable, long-term power supply to Korean companies. We will continue to expand cooperation in various areas, including renewable energy development and support for RE100 implementation."

Since entering the power brokerage business in 2023, Hyundai Engineering & Construction has supported the renewable energy transition of major companies, including affiliates of the Hyundai Motor Group. The company has developed the nation's first automated PPA IT platform and virtual power plant (VPP) service, and has promoted cumulative PPA contracts exceeding 1GW with domestic power generators.

Hyundai Engineering & Construction plans to diversify its renewable energy sources in line with the government's energy transition policy and to establish a voluntary, private sector-led PPA trading structure.