Korea East-West Power (EWP) is creating a fund to stimulate small-scale PV projects, inviting project developers who want to be investees. As discussed on April 29, EWP is pouring KRW 18 billion into the fund, and Hyundai Energy Solutions, a PV subsidiary under Hyundai Heavy Industries Group, is investing KRW 2 billion. Shinhan BNP Paribas Asset Management will manage the fund, named Dongseo Haetbit Dream Fund (the word Dongseo and Haetbit each can be translated as “East-West” and “Sunshine”). Ultimately, the partners are aiming to raise and invest up to KRW 500 billion into small PV projects around Korea, 150MW in total, the statement said.
EWP and Shinhan BNP Paribas set ‘investment guidelines to add value to society.’ The guideline requires the fund to buy Korean made equipment including modules, inverters, and transformers. It also gives investment priority to projects where small companies are participating as main design and construction contractors.
To pursue such a cause, EWP will provide stable revenue flow to small solar developers, signing long-term contracts with fixed REC prices. The power company should also provide operation and management solutions optimized for PV facilities to maximize the profitability of the small PV projects.
Hyundai Energy Solutions, on the other hand, will support the participation of small companies into the project by teaming with them, who are in need of track records and credit rating.
To be a beneficiary of the investment fund, a PV project should be able to go commercially online by coming December. It should already have secured a connection to KEPCO’s distribution system. A project must be larger than 900kW (a developer can apply up to 10MW), and all inverters, modules, and transformers should be made in Korea. The selected project will sign a 20-year SMP+REC fixed-price contract with EWP. A developer can finance up to 90% of the cost from the fund at 4.19-4.39%.
The application to the project can be submitted by May 14 by email. More details can be found at Shinhan BNP Paribas’ official document.