Peak Energy and Hyundai Motor Securities Launch 100MW Solar JV for Korean Auto Suppliers

Peak Energy and Hyundai Motor Securities, through the Vencore Rooftop Equity Fund, have launched a joint venture to develop rooftop solar installations across South Korea's automotive manufacturing supply chain. Announced on 14 October 2026, the partnership aims to deploy 100 megawatts (MW) of solar capacity within two years, helping suppliers to Hyundai Motor and other domestic automotive manufacturers reduce electricity costs and carbon emissions.

The joint venture, HMS Peak Energy, has identified five initial projects with major Tier-1 suppliers to Hyundai Motor, representing approximately 13 MW of capacity. The companies estimate that the wider 100 MW rollout could avoid around 55,000 tonnes of CO2 emissions annually, equivalent to more than one million tonnes over the operating lifetime of the assets. These figures represent projected benefits from the planned expansion rather than emissions reductions already achieved.

 

Solar Power Agreements Aim to Stabilise Manufacturing Energy Costs

 

The partnership will focus on energy-intensive automotive component manufacturers facing rising operating costs and increasing pressure to decarbonise their production processes. Through long-term solar power purchase agreements (PPAs), participating suppliers will be able to access renewable electricity at agreed commercial terms, improving visibility over future electricity expenditure and reducing exposure to market price volatility.

Peak Energy will contribute renewable energy development, construction and operating expertise, while Hyundai Motor Securities will provide financial structuring capabilities. The model is designed to allow suppliers to adopt rooftop solar without independently financing and managing the installations. Gavin Adda, CEO of Peak Energy, said, "Industrial competitiveness is now increasingly tied to the price of electricity." He added that the partnership would provide suppliers with greater long-term cost visibility while supporting supply-chain decarbonisation.

 

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Hyundai Supply Chain Targeted for Scope 3 Emissions Reductions

 

Automotive suppliers are an important source of indirect emissions for vehicle manufacturers because the production of components requires electricity and energy-intensive industrial processes. By increasing renewable electricity consumption at supplier facilities, the joint venture aims to help reduce emissions associated with manufacturing activities across Hyundai Motor's value chain.

The proposed rollout could eventually extend to several hundred supplier locations across South Korea. While rooftop solar can reduce emissions associated with purchased grid electricity, the actual reductions will depend on generation output, electricity displacement and the emissions accounting methods applied. The five initial projects provide a starting portfolio, but the companies have not disclosed their commissioning dates, individual project capacities or expected annual electricity generation.

 

Renewable Energy Investment Supports Industrial Competitiveness

 

South Korea's automotive suppliers face increasing pressure from international markets to improve environmental performance while maintaining competitive production costs. The joint venture seeks to address both challenges by combining renewable energy procurement with long-term financing structures. For manufacturers, predictable electricity costs could support investment planning, while access to renewable energy may help satisfy growing customer expectations concerning emissions across supply chains.

A representative of Hyundai Motor Securities' Infrastructure Investment Division said, "Through our joint venture with Peak Energy, Hyundai Motor Securities plans to combine competitive financing structures with strong project execution capabilities, enabling domestic suppliers to adopt solar PPAs in a reliable and sustainable manner." The partners intend to expand the programme as additional supplier opportunities are identified and commercially assessed.

 

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Peak Energy Builds on Existing Korean Solar Portfolio

 

Peak Energy has more than 300 MW of operating renewable energy assets across Asia-Pacific, with over 200 MW operating or approaching operation in South Korea. Backed by infrastructure investment firm Stonepeak, the company has experience developing industrial renewable energy projects under long-term power purchase agreements.

The latest joint venture extends that business model into a coordinated automotive supply-chain programme. Rather than developing isolated projects for individual factories, the partnership aims to build a larger portfolio supported by common financing and project delivery capabilities. This could help accelerate renewable energy adoption among suppliers that lack the resources to develop their own installations.

The success of the initiative will depend on converting its initial project pipeline into operational capacity and expanding participation across Hyundai's supplier network. The proposed 100 MW target represents a substantial opportunity for industrial rooftop solar in South Korea, but its commercial and environmental outcomes will depend on project delivery, electricity generation and the competitiveness of the power purchase agreements.

 

Source: Peak Energy