ENERGY INNOVATION PARTNERS

A team of Korea's state-run and private entities, as well as sovereign funds, have won a 600 billion won ($446 million) solar energy business contract in the U.S., according to market watchers, Sunday.

Among participants of the 459 megawatt (MW) solar power plant construction project in Concho County, central Texas are Korea Overseas Infrastructure and Urban Development Corporation (KIND), Plant, Infrastructure and Smart City (PIS) Fund, SK Ecoplant, Hyundai Engineering & Construction.

The Energy Innovation Partners (EIP) Asset Management, the organizer of the 600 billion won contract, signed a membership interest purchase agreement (MIPA) with the entities, and a separate agreement with High Road Energy Marketing, the developer of the Concho County solar power project, from Aug. 16 to 17.

The project is to build the plant with an annual power generation capacity of 852 gigawatt hours (GWh) on an 11.7 million square-meter site, about six times the size of Seoul's Yeouido, to be run for the next 35 years.

The production volume is enough for 240,000 four-person households whose monthly power consumption averages 300 kilowatt hours (kWh).

The electricity generated will be sold to global Big Tech firms.

The project will advance the RE100 initiative whereby 100 percent of energy needs will be met by the use of renewables. The green initiative led by Climate Group seeks to help influential businesses commit to renewable energy while seeking zero-carbon grids on a global scale.

Adding significance to the project is months of concerted efforts of the country's state-run and private players bearing results, since they formulated strategies from the idea development stage through the inking of the project deal.

EIP Asset Management, which possesses a renewable energy and infrastructure investment specialty, secured exclusive rights to the project in June of last year, followed by joint cooperation of KIND and PIS fund managers as well as Samsung Asset Management and other local energy firms.

SK Ecoplant will seek equity financing in the project, playing a central role in the global renewable drive.

The SK affiliate will extend renewable energy business development capabilities in the fields of solar and offshore wind power, as underpinned by engineering, procurement, and construction (EPC) contracts, a type of turnkey contract used to undertake construction work by the private sector on large-scale and complex infrastructure projects. It also secured exclusive EPC rights to the project.