LG Electronics [066570:KS] has inked a memorandum of understanding (MoU) with GS EPS, a power production firm of the South Korean GS Group [078930:KS], to procure renewable energy for its facilities, as reported by the Korea Economic Daily on September 19. According to the MoU, GS EPS will set up 10,000 solar panels with a total area of 20,000 square meters on the roof of LG Smart Park, the LG Electronics facility in Changwon. The panels are expected to produce 6,600 megawatt-hours (MWh) of solar energy annually, which may supply 10% of the plant’s yearly electricity needs and offset 3,000 tons of greenhouse gas emissions per year.
The agreement marks South Korea’s first non-interactive renewable energy generation agreement, in which energy is directly traded between producer and customer without transmission and distribution by state-run electric utility Korea Electric Power Corporation. LG Electronics has committed to achieving 100% renewable energy for its domestic and international activities by 2050, as well as halving its carbon emissions by 2030. To fulfill this commitment, LG Electronics will install solar panels to produce electricity and enter into power purchase agreements (PPAs), among other initiatives