Nuveen Infrastructure has entered into a strategic partnership with SK eternix, a South Korean green energy developer to sign a Power Purchase Agreement (PPA) with Hyundai Engineering & Construction.
This deal facilitates the sale of Renewable Energy Certificates (RECs) generated by the duo's solar projects and aims to establish stability of profits for energy producers. It could feed into an increased share of renewable energy consumption as South Korea aims to reach net zero in 2050.
The agreement could set an important signal in a country that has recently adopted a more cautious stance on net zero. Whilst initially aiming to generate all of its energy from renewables to meet its net zero targets, South Korea last year last year introduced a new energy bill which foresees increased reliance on nuclear, rather than renewable energy to meet its net zero target.
South Korea currently derives just under a third of its electricity from renewable sources.
Nuveen Infrastructure is part of Nuveen, a $1.1trn investment manager whose parent company is the Teachers Insurance and Annuity Association of America-College Retirement Equities.
The collaboration between Nuveen Infrastructure and SK eternix began in 2022, aiming to develop and manage 80MW of solar power projects. This venture is reflective of a wider trend in the region, where there is growing investment in renewable energy projects to support carbon neutrality and promote environmentally friendly corporate practices.
