Shinhan Bank, together with the Korea Development Bank, has completed a project financing (PF) agreement for a 90-megawatt (MW) solar power project in Yeonggwang County, South Jeolla Province, the bank said Tuesday. The agreement totals approximately 241 billion won, with the two banks participating as co-arrangers and lenders.
The project involves building a 90 MW solar power plant in the Yeonggwang County area and supplying electricity to Gwangsan-gu in Gwangju Metropolitan City through an approximately 50-kilometer underground 154 kV transmission line.
Generation capacity will start at 90 MW in the first phase, with an additional 70 MW in the second phase and 140 MW in the third phase, ultimately expanding to a total of 300 MW. Based on installed capacity, this is enough to produce the electricity that approximately 110,000 four-person households use in a year.
The project was designed based on a long-term direct power purchase agreement (PPA). The electricity produced will be sold in full to renewable energy supplier Hyundai Engineering & Construction over the next 30 years. The arrangement is seen as supporting Korean companies' expanded use of renewable energy and RE100 implementation, while enhancing business stability by securing long-term demand.
The project owner, Alpha Asset Management, established a fund for equity investment in the solar power project in June 2023 and is pursuing the project in phases. Construction (EPC) is being handled by a consortium of LS Electric and Iljin Electric, while operation and maintenance (O&M) will be carried out by LS Electric.
Shinhan Bank plans to use this financing support as an opportunity to expand renewable energy infrastructure investment and strengthen its role in productive finance in the energy transition sector. "This project is an example of productive finance in which finance supports the real economy and the energy transition together," a Shinhan Bank official said. "We will continue to expand financial support for the renewable energy sector to contribute to companies' RE100 implementation and the creation of a domestic eco-friendly energy ecosystem."
