South Korea’s largest renewables PPA

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South Korean natural liquefied gas (LNG) provider and renewable energy company SK E&S, a unit of Korean conglomerate SK Group, announced it secured a 20-year power purchase agreement (PPA) from the group's subsidiary SK Specialty.

SK Specialty has agreed to buy electricity from 50 MW of renewable energy assets located in South Korea's South Chungcheong Province from 2024 to 2044 at an undisclosed price.

The industrial group described the deal as Korea's largest renewables PPA ever signed to date. It added that other subsidiaries such as SK Trichem and SK Materials Performance may soon follow with similar deals.

The first renewables PPA was signed in Korea between SK E&S itself and Seoul-based beauty products supplier Amorepacific in March. The electricity will be provided by a 5 MW renewable energy plant operated by SK E&S at an unspecified location.

South Korea’s Ministry of Trade, Industry and Energy (MOTIE) allowed domestic electricity consumers to buy power from renewable energy power producers through power purchase agreements (PPAs) in 2021.

Under the K-RE100 initiative, the Korean government aims to make the country fully powered by renewable energy by 2050. Under this regime, state-owned utility Korea Electric Power Corp (Kepco) acts as an intermediary between buyers and sellers of electricity.

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