LG Uplus is entering the renewable energy supply business, aiming to enhance the spread of eco-friendly renewable energy, activate corporate RE100 compliance, and create distinct customer value.
LG Uplus has signed a memorandum of understanding for collaboration in the renewable energy supply business with Smart Green Village, a consulting firm for solar power project development, and Hanwha Systems, a company specializing in ICT solutions and infrastructure for solar power plants.
The existing power market was structured in such a way that electricity is produced by power plants and supplied to users via Korea Electric Power Corporation. However, renewable energy sources like solar and wind power have small-scale generation facilities distributed nationwide, making management difficult and hindering stable electricity production, which poses challenges to market integration.
To address these issues in renewable energy supply, LG Uplus has decided to venture into power brokerage businesses such as Virtual Power Plants (VPP) and Power Purchase Agreements (PPA).
The VPP technology efficiently supplies and manages power by bundling solar, wind, and other generation facilities in a virtual space using IT technology. This allows for stable management of electricity supply fluctuations and improves energy usage efficiency.
If VPP technology spreads in the power brokerage market, there will be advantages in utilizing more eco-friendly energy. Furthermore, it enables more efficient use of electricity produced by small-scale generation facilities, significantly contributing to the overall improvement of the power supply market ecosystem.
The direct PPA method involves directly supplying electricity produced by renewable energy plants to corporate customers. This can assist companies struggling to procure renewable energy in achieving their RE100 goals, while also providing more transaction opportunities for small-scale power producers. Particularly, with global markets requiring domestic companies to join RE100, the direct PPA market is expected to activate further.
*RE100: An international campaign aimed at companies committing to sourcing 100% of their electricity from renewable energy such as solar and wind.
Through the MOU with two companies specializing in renewable energy, LG Uplus plans to rapidly seize the power brokerage market and take the lead in achieving carbon neutrality. To this end, Smart Green Village will recruit solar power resources and provide corporate consulting for RE100 compliance. Hanwha Systems plans to cooperate in the fields of construction and maintenance service for renewable energy power plants.
Prior to formal collaboration, the three companies held a signing ceremony at the LG Uplus office in Yongsan, promising cooperation to strengthen VPP business and enter the PPA market. Key executives present included Jeon Seung-hoon, LG Uplus Corporate Platform Business Manager (Executive Director), Eom Hong-chan, CEO of Smart Green Village, and Ban Wang, Hanwha Systems Solution Business Manager (Executive Director).
Jeon Seung-hoon emphasized, “In a situation where renewable energy is establishing itself as a key energy source, collaboration with these two companies is expected to produce significant synergies from a business perspective,” adding, “We will actively respond to the changing market environment and take the lead in promoting renewable energy and achieving carbon neutrality.”
Ban Wang stated, “For this renewable energy supply business, we will maximize our technology capabilities from infrastructure design and technical support to maintenance management, providing overall support,” and added, “Hanwha Systems plans to seek various business opportunities that can contribute to achieving carbon neutrality in the future.”
Eom Hong-chan noted, “While complying with RE100 is recognized as an economic issue that drives national industrial growth beyond just an environmental problem, the response level from each company has been too minimal. Based on our past consulting and field experience, we will present the right alternatives in the rapidly changing RE100 market and lead the market through this collaboration.”
Lee Sang-jin daedusj@autodiary.kr