GS E&C is entering India's renewable energy market with a repowering business targeting aging wind power plants, along with the development of an integrated renewable energy business model. The move accelerates the company's transition from a housing-focused business structure to an energy developer.
GS E&C announced Thursday that CEO Huh Yoon-hong signed memorandums of understanding with Indian renewable energy repowering firm Aaree Energy and wind power company Suzlon Energy in New Delhi on Wednesday.
In cooperation with Aaree Energy, GS E&C will pursue a repowering business targeting aging wind power plants in India. Repowering replaces existing facilities with the latest turbines to boost power generation and lower initial development risks, a model evaluated as securing both profitability and stability.
The two companies are targeting a total of 1 gigawatt (GW) of projects in India within the next five years, and plan to establish a joint venture to jointly carry out development, investment and operation. GS E&C will handle business structuring, financing and customer acquisition, while Aaree Energy will be responsible for permits, land acquisition and project management.
With Suzlon Energy, GS E&C will develop an integrated renewable energy business model combining solar, wind and energy storage systems (ESS). Suzlon Energy is a global company specializing in the production and operation of wind turbines, and the two firms plan to jointly identify business opportunities across India.
The partnership is particularly meaningful in that it focuses on building an integrated power supply model that adds ESS to a hybrid approach combining solar and wind power. The model offers the advantage of enabling stable power supply despite climate volatility, thereby improving energy efficiency.
GS E&C is already participating as a developer in solar power generation in India, operating the Patur solar power complex. Through this agreement, the company plans to expand its existing business, diversify its renewable energy portfolio, and strengthen its climate change response and ESG strategy.
"We expect our business scope to expand further through this agreement with partners we have collaborated with locally," a GS E&C official said. "We will build a sustainable growth framework in the Indian market based on integrated renewable energy solutions."
