Nuveen’s Korean JV seals solar RECs deal with Hyundai E&C

Private equity investor Nuveen Infrastructure and its joint venture partner SK eternix have secured Hyundai Engineering & Construction (KRX:000720) as the offtaker of Renewable Energy Certificates (RECs) of its solar portfolio in South Korea.

The virtual power purchase agreement (VPPA) calls for Hyundai E&C to buy all RECs related to the electricity generation of the duo’s photovoltaic (PV) projects, Nuveen said on Thursday. The fixed-priced contract will run for 25 years or until the lifespan of the projects ends.

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“The PPA structure signed with Hyundai is an innovative agreement for the Korean market and one which secures absolute returns from our investment so far,” said Francesco Cacciabue, Global Head of Clean Energy Investments at Nuveen Infrastructure.

Nuveen and SK set up their JV in late 2022 to acquire, build and operate 80 MW of solar projects. The partners expect this VPPA to lead to the start of a wider cooperation with Hyundai E&C as the clean electricity trading company of Hyundai Motor Group aims to achieve its 100% renewable energy commitment under the RE100 initiative.