Brite Energy Partners (BEP) announced on the 18th that it has signed a power purchase agreement (PPA) with Hanwha Shinhan Terawatt Hour for a scale of 11.4 megawatts (MW).

Hanwha Shinhan Terawatt Hour is a joint venture established in September 2023 by Hanwha Energy's Convergence Division and Shinhan Financial Group for renewable energy power transactions, focusing on supplying renewable energy.

Bright Energy Partners operates a solar power plant located in Seosan, South Chungcheong Province. / Courtesy of Bright Energy Partners

Under this contract, BEP will supply electricity produced at its operating solar power plants to Hanwha Shinhan Terawatt Hour, enabling two Hanwha affiliates to use renewable energy. All target power plants are expected to begin commercial operation within this year.

This is the first time BEP will supply power through a direct power purchase agreement (Direct PPA). Previously, supplying renewable energy certificates (RECs) for 20 years to corporations pursuing RE100 (100% renewable energy) was the main method.

The Direct PPA is a system that allows electricity users to purchase power directly from power producers. It was introduced in 2021. Corporations pursuing RE100 can secure renewable energy stably in the long term while reducing industrial electricity price volatility risk through fixed-price contracts.

According to the Ministry of Trade, Industry and Energy and Korea Electric Power Corporation, the industrial electricity rate has increased by 10.2% (16.9 won) from 165.8 won to 182.7 won per kilowatt-hour (kWh) since October last year. As a result, the burden on corporations has increased, prompting a movement to purchase power directly in the electricity market.

Myeong Jinwoo, head of the BEP operational strategy institutional sector, noted, "By utilizing the Direct PPA, corporations can reduce electricity cost volatility and manage energy in a predictable manner."

Kim Heeseong, head of BEP, stated, "BEP will actively utilize solar power assets to support corporations in achieving their carbon reduction goals, and we aim to become a trusted partner in supporting RE100 and ESG goals in the highly volatile electricity market."

※ This article has been translated by AI. Share your feedback here.