Stocks related to renewable energy, including solar power, are rising across the board early on the 4th. With bargain hunting flowing in after a recent sharp drop in share prices, the gains appear to reflect expectations for the government's activation of direct power purchase agreements (PPA) and an expansion of U.S. supply chains for non-China solar products.
At 9:51 a.m. that day on the Korea Exchange, SK eternix(475150) was trading at 55,000 won, up 8,450 won (18.15%) from the previous session. HD Hyundai Energy Solutions rose 22,200 won (18.56%) to 141,800 won, and OCI Holdings was up 23,100 won (11.73%) to 220,000 won. On the KOSDAQ market, Daejoo Electronic Materials was trading at 80,400 won, up 7,700 won (10.59%).
SK eternix operates renewable energy businesses including solar and wind power, fuel cells, and energy storage systems (ESS). As electricity demand increases, expectations are reflected that the government's PPA activation policy could lead to higher values for generation assets.
OCI Holdings and HD Hyundai Energy Solutions drew attention on expectations of benefits from U.S. moves to exclude China-made solar supply chains. For OCI Holdings, rising U.S. demand for non-China polysilicon and expanded capacity in Malaysia are cited as investment factors, while for HD Hyundai Energy Solutions, U.S. solar module supply contracts and growing demand for high-efficiency products are cited.
Daejoo Electronic Materials, which produces conductive paste for solar cells, is gaining on the growth potential of its existing solar materials business and expectations of entry into the space solar market using high-efficiency heterojunction (HJT) solar cell materials.