Gyeonggi Province, together with private companies, is launching the “Industrial Complex RE100 Project” to help companies in the province achieve RE100. The project involves eight private investment consortia and will see the investment of KRW 4 trillion in the supply of 2.8 GW of solar power (equivalent to the output of two nuclear power plants) to 50 industrial complexes in Gyeonggi Province by 2026.

Gyeonggi Province Governor Dong Yeon Kim signed the ‘Industrial Complex RE100 Investment Agreement’ with representatives of eight private investment consortia, including SK E&S, at ThyssenKrupp Material Korea, a company located in the Poseung Foreign-Invested Company Complex in Pyeongtaek City.

The Industrial Complex RE100 Project targets the installation of solar power generation facilities on factory roofs and idle sites in industrial complexes, supplying the renewable energy generated to factories in the complexes as well as to external companies.

Gyeonggi Province explained that it is actively promoting the Industrial Complex RE100 Project to address a situation in which major global companies require their suppliers to use 100% renewable energy for the realization of RE100, creating trade barriers for domestic exporters. The agreement, which comes at a time when the Korean central government has lowered its renewable energy targets, means Gyeonggi Province is now leading Korea’s RE100 efforts.

Industrial complexes are free from issues such as environmental matters, public complaints, and grid connection, and the renewable energy potential of idle sites in 193 industrial complexes of Gyeonggi Province is as high as 7.6 GW, making them valuable in achieving RE100 and enhancing the carbon regulation competitiveness of companies located in industrial complexes.

Gyeonggi Province selected eight private investment consortia of 11 companies, including SK E&S, through a transparent and methodical business process. These consortia plan to invest a combined KRW 4 trillion by 2026 in the supply of 2.8 GW of solar power to industrial parks in Gyeonggi Province; 2.8 GW approximately equates to the electricity generated by two nuclear power plants.

Under the agreement, the eight consortia will actively cooperate in implementing administrative procedures such as permits required for renewable energy installations, supporting tenant companies and site discovery, installing renewable energy equipment, generating and financing electricity, and supporting RE100 companies. Gyeonggi Province will support administrative procedures, site selection, and RE100 supply-and-demand connections.

Gyeonggi Province plans to start with 50 industrial complexes at which the project can be launched this year and will then expand it to all 193 industrial complexes in Gyeonggi Province. The 50 industrial complexes will be divided into four regions, and two consortia selected for each region will be responsible for implementing RE100 in that region.

Gyeonggi Province formed the eight consortia and the ‘Gyeonggi Industrial Complex RE100 Promotion Group’ to establish a public-private partnership system for smooth project implementation. Starting in August, the group will visit industrial complexes and establish a network to connect renewable energy suppliers and consumers so as to support Gyeonggi Province companies that urgently need to implement RE100.

Gyeonggi Province expects that the agreement will make it easier for companies in the province that have struggled with RE100 to secure renewable energy and increase their export competitiveness. In addition, companies that lease out their roofs for renewable energy facilities can also earn rental revenue or invest in equity, which is expected to encourage other industrial complexes to participate.

Once the 2.8 GW of solar power facilities slated for 50 industrial complexes are installed, companies in the industrial complexes that have leased out roofs or idle sites will be able to earn a potential combined total of KRW 100 billion in rental income annually.

At the agreement ceremony, Governor Kim said, “This agreement ‘kills three birds with one stone.’” He continued, “First, it will create 2.8 GW of renewable energy; second, it enables investment by the companies participating in the agreement without financial support from Gyeonggi Province; and third, the companies in the industrial complex that provide venues can earn up to KRW 100 billion in annual rental income.”

He then said, “Everything was done transparently and according to set procedures… Gyeonggi Province will be the most proactive in responding to climate change, procuring enough renewable energy, allowing related companies to invest freely according to business feasibility, and creating a system in which companies can profit accordingly.”

Jeon Eui-chan, Chairman of the Gyeonggi Carbon Neutrality Committee, and other members of the general subcommittee attended the agreement ceremony. ThyssenKrupp Materials Korea, a foreign-invested company that leased land in Gyeonggi Province, plans to build a solar power plant with a capacity of about 700 kW in the future.

Pyeongtaek Mayor Jang Jang-sun, Urban Environment Committee Vice Chairman Kim Sang-gon, S&S Vice President Park Jae-duk, LS Electric Vice President Oh Jae-seok, and Carbon Neutral Green Growth Committee Chairman Jeon Eui-chan attend the RE100 investment agreement ceremony held at ThyssenKrupp Material Korea in Pyeongtaek City on the afternoon of July 17.