GS E&C is partnering with a global infrastructure investment firm to expand its renewable energy business in Korea.
GS E&C said Monday that it had signed a memorandum of understanding with I Squared Capital, a global infrastructure investment firm, to establish a joint venture for pursuing renewable energy projects in Korea.
Through the joint venture, the two companies plan to pursue solar power and battery energy storage system (BESS) projects in Korea, developing and securing a total of 1.5 gigawatts (GW) of energy transition assets by 2035. In particular, solar power generation assets will be expanded to approximately 820 megawatts (MW). The total estimated project cost is around 3 trillion won. The two companies are considering directly investing some of the funds while raising the remainder through external sources such as project financing (PF).
The two companies plan to pursue the business by combining I Squared Capital's expertise in global infrastructure investment with GS E&C's experience in energy transition projects, understanding of the domestic market, and engineering and project execution capabilities. To this end, they will jointly identify new business opportunities in the domestic solar power and BESS sectors and review the commercial viability and technical and financial feasibility of individual projects.
GS E&C will handle development tasks such as securing land, obtaining permits, and establishing the initial business structure. It also plans to carry out project management and technical advisory roles based on the experience accumulated in domestic and overseas renewable energy projects. I Squared Capital will participate in establishing investment structures and financing plans for each project based on its global infrastructure investment experience.
I Squared Capital is a global infrastructure investment firm founded in 2012 that manages approximately $60 billion (about 90 trillion won) in assets. It has carried out renewable energy development and investment projects in India, Japan, and Taiwan. "We plan to focus on securing renewable energy development rights at home and abroad and stable power demand sources," a GS E&C official said.
GS E&C is gradually pursuing a mid- to long-term business strategy centered on energy transition. In January this year, it participated as a developer in a solar power project in India, completing the Patur solar power complex in the state of Maharashtra.
