Hyundai E&C, Glennmont D&D sign renewable energy PPA

Hyundai Engineering & Construction Co. (Hyundai E&C) announced on Tuesday that it signed a power purchase agreement (PPA) for solar renewable energy supply with the UK-based Glennmont D&D Solar Holdings.

Glennmont D&D is a joint venture established last year by Glennmont Partners, a renewable energy investment firm, and SK Eternix, a spin-off of SK D&D Co. 's renewable energy business. 

The contract was signed as a virtual PPA, involving the trade of renewable energy certificates (RECs) without the physical supply of electricity from the renewable energy power plant.

REC is a certificate that verifies energy supply through renewable sources such as solar power. 

Companies purchasing RECs gain the same benefits as directly producing renewable energy.

Under the agreement, Hyundai E&C will receive RECs from Glennmont D&D until 2048, spanning 25 years.

The company said that this collaboration will establish a network to supply stable renewable energy to domestic companies, including Hyundai Mobis, which have signed renewable energy purchase agreements with Hyundai E&C.

Hyundai E&C supported the transition to renewable energy for major domestic companies, including Hyundai Motor Co., Kia Corp., and Hyundai Mobis in September 2023.

The company has partnered with energy IT company 60Hz and developed the first-in-Korea power transaction automation IT platform and virtual power plant (VPP) services with an integrated PPA trade automation solution.

Hyundai E&C started the energy self-sufficiency infrastructure construction and operation project at the Southeast National Industrial Complex in Incheon, exploring various offerings and business models.

Write to Eun-Ji Shim at summit@hankyung.com