SK Innovation E&S announced on the 15th that it has partnered with JB Financial Group and InnoGen, a carbon consulting company, to support domestic companies in their implementation of RE100 by expanding renewable energy Power Purchase Agreements (PPAs). On the 14th, SK Innovation E&S signed a Memorandum of Understanding (MOU) at the SK Seorin Building with JB Financial Group and InnoGen to activate the domestic RE100 market and promote carbon neutrality in private companies.
Under this agreement, the three companies will collaborate to launch exclusive financial products for PPAs for solar power operators, interlink PPA contracts with loans, and promote and consult on PPAs, thereby establishing a private sector-driven cooperation system to expand PPAs.
As the first practical outcome of the agreement, Jeonbuk Bank and Gwangju Bank of the JB Financial Group will develop and supply the first PPA-exclusive facility mortgage loan in the first financial sector, based on advice from SK Innovation E&S and InnoGen. Jeonbuk Bank will utilize its existing ‘JB Green Biz Loan’ for solar power facility funding, while Gwangju Bank will introduce a new solar collateral loan called ‘Gwangju Bank RE100 SOLAR-LOAN’.
Previously, solar power operators could only obtain solar facility mortgage loans when engaging in RPS (Renewable Portfolio Standards) contracts, which posed challenges for PPA contracts. The ‘JB Green Biz Loan’ from Jeonbuk Bank and ‘Gwangju Bank RE100 SOLAR-LOAN’ are expected to open participation opportunities in the private RE100 market for existing solar power operators.
SK Innovation E&S will actively promote and facilitate the use of these products by power operators and take a proactive role in securing PPA contracts. Additionally, they will work together to ensure a stable supply of renewable energy to achieve carbon neutrality for the JB Financial Group affiliates.
Choi Jin-seok, head of external cooperation at JB Financial Group, said, “We will continue to explore various carbon neutrality-related solutions and lead the creation of a private-centered renewable energy ecosystem.”
Chun Sung-moon, CCO of InnoGen, stated, “We will actively develop customer-tailored carbon reduction solutions, including discovering new models, and strive to expand the base of the RE100 market.”
Lee Jin-mo, Head of the Renewable Energy Business Planning Office at SK Innovation E&S, expressed, “This agreement is expected to activate solar operators’ participation in the private renewable energy PPA market,” and pledged continuous efforts to secure PPA supply resources amidst a domestic market environment with limited renewable energy.