BlackRock Supports South Korean Solar Sector – EQ Mag Pro
South Korean solar energy company Brite Energy Partners has welcomed a USD 100 million investment from BlackRock Real Assets (BRA).
BRA, a division of one of the world’s largest asset managers, BlackRock, has made its first investment in South Korea’s small-scale solar industry via its investment in Brite Energy.
It follows Korea’s previously announced plans to reduce its carbon emissions by 40% by 2030. Korea also intends to build new and renewable energy facilities totalling approximately 30 Gigawatts by 2025.
The investment was made via BRA’s Global Power Renewable Fund III, which successfully raised proceeds of USD 4.8 billion earlier this year, over a third of which is invested in climate infrastructure assets in the Asia-Pacific.
Investing in the small and medium sized solar power generation industry in South Korea is part of the fund’s wider strategic plan.
Brite Energy instructed White & Case for legal advice on the investment. Partner Dongho Lee, leading the advisory team, said in a statement that Brite is “an up and coming Korean solar energy company”, describing the transaction as “an important investment that will accelerate its further growth”.
Brite Energy plans to use the investment monies to fund the acquisition and build of small-scale solar projects in South Korea, which should have a total energy capacity of 350 Megawatts.
All the projects acquired and developed by Brite Energy are expected to be fully contracted under 20-year agreements with subsidiary companies of Korean Electric Power Corporation, a state-owned company, or Korean member companies of the Climate Group’s global RE100 initiative.
BlackRock Renewable Power’s executive vice president Charlie Reid said: “This transaction is an important milestone for us in Korean solar investment. It will exert a strong force in Korea’s solar investment.”
Brite Energy’s CEO Kim Hee-Seong added: “BlackRock is pursuing a sustainable investment and showing a strong will to invest in the new and renewable energy sector according to the ESG investment strategy. I am confident that as much as the scale of capital is gathered together, it will greatly contribute to the qualitative and quantitative growth of the domestic solar market.”
White & Case’s lead partner Lee was assisted by three associates, Younghee Chung, Jun Kim and Justin Chang.
A solar portfolio belonging to BlackRock Real Assets and London-based solar energy firm Lightsource bp was purchased by Greencoat Solar II, a fund owned by investment management firm Greencoat Capital, in May last year.
Source: iclg
