Nuveen Infrastructure and SK Eternix have signed a power supply deal with Hyundai Engineer & Construction for South Korean solar projects.
The joint venture between Nuveen Infrastructure and SK Eternix, a clean energy developer in South Korea, signed the power purchase agreement (PPA) with respect to their joint venture projects.
Under the agreement the JV will sell to Hyundai all the Renewable Energy Certificates (RECs) generated by the electricity production of all the solar projects once they become operational.
The deal with Hyundai E&C is carried out through a virtual PPA, a method of settling the difference between the market power wholesale price and the fixed contract price entered into by power generation companies and consumers.
Under the terms of the contract, the period of sale for the RECs will run for 25 years or the final date that the projects produce electricity.
It is expected the PPA will mark the beginning of a wider future cooperation between the joint venture and Hyundai E&C as the clean electricity trading company of Hyundai Motor Group.
For Hyundai E&C, the deal is also another step towards their targets under the RE100 initiative – a global corporate clean energy initiative committing its members to achieve 100% renewable electricity.
Nuveen Infrastructure’s global head of clean energy investments Francesco Cacciabue said: “Nuveen Infrastructure is committed to driving South Korea’s clean energy transition and look forward to continuing our work with partners such as SK eternix and Hyundai on future projects in the renewables space.”
The joint venture between Nuveen Infrastructure and SK Eternix was signed in late 2022 with a view to acquire, build and operate 80MW of solar projects.
As part of the agreement, SK Eternix owns a minority interest in the JV, while Nuveen Infrastructure owns a majority stake.