SK Innovation E&S will collaborate with JB Financial Group and the carbon consulting firm Energen to support domestic corporations in achieving 100% renewable energy (RE100) commitments through the expansion of power purchase agreements (PPA).
On the 15th, SK Innovation E&S announced that it signed a tripartite memorandum of understanding with JB Financial Group and Energen at SK Serin Building in Jongno-gu, Seoul, to promote the activation of the domestic RE100 market and encourage private corporations' carbon neutrality.
Under this agreement, they will launch dedicated financial products for PPA targeting solar power producers, interconnect PPA contracts and loans, and work together on PPA promotion and consulting to establish a private-led cooperation system for PPA expansion.
JB Financial Group's Jeonbuk Bank and Gwangju Bank will develop and provide the first dedicated facility-backed loans for PPA aimed at achieving private sector RE100 based on advice from SK Innovation E&S and Energen. Jeonbuk Bank will offer the existing 'JB Green Biz Loan' for solar power facility financing, while Gwangju Bank plans to launch a new solar-backed loan called 'Gwangju Bank RE100 Solar Loan.'
Solar power producers have faced difficulties with PPA contracts because collateral loans for solar facilities were only available during renewable energy supply obligation contracts. The 'JB Green Biz Loan' from Jeonbuk Bank and the 'Gwangju Bank RE100 Solar Loan' will provide opportunities for existing solar power producers to participate in the private RE100 market.
SK Innovation E&S plans to support power producers in utilizing these products and move forward with signing PPAs. They also agreed to collaborate for the stable supply of renewable energy aimed at achieving carbon neutrality under JB Financial Group.
Energen will provide promotion and education for the expansion of PPA targeting power producers and support professional consulting for JB Financial Group's carbon neutrality and RE100 achievement.
Lee Jin-mo, head of the Renewable Energy Business Planning Division at SK Innovation E&S, noted, "With this agreement, participation in the private renewable energy PPA market by solar power producers is expected to be activated," and added, "We will continue to work hard to secure PPA supply resources in the domestic market, where renewable energy is scarce."