LG Uplus to enter renewable energy market through power brokerage

LG Uplus Corp., South Korea's third-largest mobile carrier, announced on Thursday that it will enter the renewable energy supply business through power brokerage.

The company has signed a memorandum of understanding (MOU) with Smart Green Village, a domestic consulting firm specializing in solar power project development, and Hanwha Systems Co., a subsidiary of Hanwha Group specializing in information and communication technology (ICT) solutions for solar power plants.

The power market traditionally operates by supplying electricity generated at power plants to users through Korea Electric Power Corporation (KEPCO).

However, small-scale solar and wind power facilities, scattered across the country, pose challenges for grid integration due to their distributed nature.

This makes them difficult to manage and results in inconsistent power production, hindering their full participation in the energy market.

To address these challenges, LG Uplus has decided to enter the power brokerage business, including virtual power plants (VPP) and direct power purchase agreements (PPA).

A VPP integrates solar and wind power plants nationwide into a virtual space using IT technology, enabling efficient power supply and management.

Direct PPA involves supplying electricity produced by renewable energy plants directly to corporate customers, aiding companies in achieving their RE100 goals and increasing opportunities for small-scale producers.

Write to Eun-Yi Ko at koko@hankyung.com