Hyundai Engineering & Construction Signs Solar Power Supply Agreement with Top Solar

By Global Infrastructure Sherpa · Jan 20, 2026

Ppa Solar signed Gwangju, South Korea

1.5 GW

Capacity

Hyundai Engineering & Construction has signed a renewable energy power supply agreement with Top Solar for a total capacity of 1.5GW, equivalent to the output of a large nuclear power plant. The contract period for each power generation project is over 20 years.

Deal Analysis

Hyundai Engineering & Construction's power purchase agreement (PPA) with Top Solar for 1.5 GW of solar capacity represents a significant commitment to renewable energy in South Korea. This agreement, with a contract period exceeding 20 years for each project, underscores Hyundai E&C's focus on sustainable infrastructure and aligns with Hyundai Motor Group's broader strategy of investing in future mobility and smart city initiatives. The deal provides Top Solar with a long-term revenue stream, enabling further expansion of its solar energy development capabilities. The involvement of Hyundai Motor Group suggests a potential synergy between renewable energy generation and the group's electric vehicle and smart city ambitions. This agreement is notable for its scale, equivalent to the output of a large nuclear power plant, and the participation of major players in the construction, energy, and automotive sectors. The long-term nature of the PPA provides stability and predictability for both Hyundai E&C and Top Solar. Furthermore, the deal signals a growing trend towards corporate PPAs in the Asia Pacific region, where companies are increasingly seeking to secure renewable energy sources to meet sustainability goals and reduce carbon emissions. This deal could encourage further investment in solar energy projects in South Korea and the broader region.

1.5 GW solar PPA is equivalent to the output of a large nuclear power plant.
Involves Hyundai Engineering & Construction, Top Solar, and Hyundai Motor Group, showcasing cross-sector collaboration.
Long-term contract period (over 20 years) provides revenue stability.
Located in Gwangju, South Korea, indicating a focus on expanding renewable energy infrastructure in the region.

Market Context: The solar energy sector in the Asia Pacific region, particularly in South Korea, is experiencing significant growth driven by government policies, declining technology costs, and increasing corporate demand for renewable energy. Corporate PPAs are becoming a key mechanism for financing and developing new solar projects, enabling companies to secure long-term, cost-effective renewable energy supplies.