LG Electronics signs Factory Direct PPA with GS EPS

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Park Pyung-gu, left, senior vice president of safety and environment of LG Electronics, and Chung Chan-soo, CEO of GS EPS, pose for a photo during an agreement signing ceremony purchase of electricity on Friday in the Gangnam district, south of Seoul. [LG ELECTRONICS]

LG Electronics will purchase renewable energy from GS EPS, a local energy company, to power its home appliance factory in Changwon, South Gyeongsang.

The companies signed an off-grid direct power purchase agreement (PPA) on Friday. This is the first case in which local companies have signed a direct off-grid PPA agreement. Direct off-grid PPA does not use the public power grid operated by Korea Electric Power Corporation (Kepco) in power trading.

The PPA direct system came into effect on September 1. It allows electricity consumers to purchase renewable energy, such as solar and wind power, directly from electricity generators.

The new system has been set up by the Ministry of Commerce, Industry and Energy with the aim of supporting local businesses that have joined the RE100 initiative by offering a wider range of options. Under the previous third-party PPA system introduced last year, power purchase agreements had to be negotiated by Kepco, and companies had to pay network fees to Kepco.

GS EPS will install and operate some 10,000 solar panels, measuring 20,000 square meters (215,278 square feet) in total, at LG’s Smart Park factory in Changwon by 2025. As the electricity generated by the solar panels will be deployed directly in the factory, the companies do not need the electrical network operated by Kepco.

The solar plant will produce approximately 6,600 megawatt hours of electricity per year, which is equivalent to approximately 10% of the electricity used by the plant. Around 3,000 tonnes of carbon emissions are expected to be reduced through the deal, the companies say.
LG Electronics announced on August 16 that it has joined the RE100 initiative, with the goal of achieving carbon neutrality by 2050.

The signing ceremony for the PPA agreement was held last Friday in the Gangnam district, south of Seoul, attended by Chung Chan-soo, CEO of GS EPS, and Park Pyung-gu, senior vice president of the safety and environment of LG Electronics.

“We expect this project to serve as a catalyst to accelerate LG Electronics’ transition to renewable energy, and we will continue to work with LG Electronics based on our expertise in renewable energy generation,” Chung said. .

“By continuously working for the transition to renewable energy in key production bases, we will provide a unique customer experience for LG Electronics through premium, environmentally friendly products,” Park said.

BY SHIN HA-NEE [[email protected]]


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