Lee Gyu-lee is a business writer at The Korea Times, focusing primarily on IT & telecommunications, the Ministry of Trade, Industry and Energy and KOTRA. Prior to this, she has covered a wide range of cultural news, from film, television and K-pop to lifestyle and fashion.
GS E&C partners with I Squared Capital to expand renewable energy development
GS E&C CEO Huh Yoon-hong, left, poses with Chenhua Shen, a fund partner of I Squared Capital, after signing a memorandum of understanding in Seoul, Monday, to establish a joint venture aimed at developing renewable energy projects in Korea. Courtesy of GS E&C
By Lee Gyu-lee
GS Engineering & Construction (GS E&C) is accelerating its shift toward an energy transition and developer-led business model as it seeks new growth engines in renewable energy beyond traditional construction.
The company said Monday it signed a memorandum of understanding (MOU) with global infrastructure investor I Squared Capital to establish a joint venture aimed at developing renewable energy projects in Korea, including solar power and battery energy storage systems (BESS).
I Squared Capital, founded in 2012, is a global infrastructure investment firm managing more than $60 billion (90 trillion won) in assets, with a focus on power and utilities, transport, digital infrastructure, environmental systems and social infrastructure.
The signing ceremony was attended by GS E&C CEO Huh Yoon-hong and executives from I Squared Capital. The partnership marks a strategic move for GS E&C as it expands from an engineering, procurement and construction contractor into a full-scale project developer securing energy assets from the early stages.
Under the agreement, the two companies plan to develop and secure up to 1.5 gigawatts of renewable energy assets by 2035. Of this, about 820 megawatts will come from solar power projects. Total investment for the pipeline is estimated at around 3 trillion won, to be financed through a mix of equity investment and project financing.
GS E&C will handle project development in Korea, including site acquisition, permitting and early-stage structuring, while also providing engineering expertise and project management based on its experience in renewable energy and infrastructure projects.
I Squared Capital will contribute its expertise in investment structuring and financing strategies. The firm has been active in renewable energy investments across Asia, including India, Japan and Taiwan, and is expanding into the Korean market through the partnership.
The two companies plan to jointly identify new renewable energy opportunities and assess the technical and financial viability of projects.
GS E&C said the collaboration reflects its strategy to evolve from a conventional engineering, procurement and construction contractor into a renewable energy developer that owns and operates energy assets, strengthening its position in the global energy transition and carbon neutrality trend.
“GS E&C is expanding its renewable energy portfolio, including solar and energy storage systems, in response to global energy transition and decarbonization trends,” a GS E&C official said. “We will continue to develop new projects while securing stable power demand sources both domestically and overseas.”
GS E&C has recently expanded its renewable push. In January, it participated as a developer in a solar project in Maharashtra, India, completing the 12.75 megawatt Patur Solar Power Plant, supplying electricity to industrial clients, including Korean firms operating locally.
In April, Huh attended an MOU signing ceremony with India’s Arie Energy and Suzlon Energy, focusing on wind farm repowering and hybrid renewable systems combining solar, wind and BESS.
Domestically, the company is expanding its renewable energy portfolio with projects including a 13 megawatt solar facility in Taean, South Chungcheong Province supplying electricity to LG Uplus, a 60 megawatt solar plant in the same area, and a 35 megawatt rooftop solar project.