Hyundai Engineering and Construction on Monday announced a strategic equity investment in the energy tech startup 60Hertz, marking its foray into the emerging electricity brokerage market, part of the company’s larger strategy to solidify its position in new energy initiatives.
Hyundai E&C's partnership with 60Hertz aims to launch Korea's first integrated IT platform for energy trading, fostering an IT-driven ecosystem to automate transactions between electricity producers and consumers. This electricity aggregator aligns power generated from renewable sources, like solar, with compensation by forecasting the next day's output for virtual power plants, or VPPs, which refer to a virtual network of multiple power plants.
The platform will also provide financial and technological support to power producers while assisting customers in managing their RE100 portfolios.
60Hertz specializes in forecasting renewable energy output and developing VPP software. The two firms also have an experience collaborating on the "RE100 Portfolio Simulator," a tool Hyundai E&C now utilizes for strategic consultancy with various entities.
During their general shareholders' meeting in March, Hyundai E&C officially incorporated the supply of renewable electricity and the small-scale electricity brokerage business into its corporate objectives. Consequently, they established a dedicated unit for the electricity brokerage business.
Both Hyundai's startup accelerator, ZER01NE, and Hyundai Motor Securities are co-investors in this venture. While the initial investment amount remains undisclosed, Hyundai foresees potential for increased stakes in the future.
"Our experience in renewable energy design and operations positions us as a trusted player in the emerging private-sector power trading market. This business is also in line with Hyundai Motor Group's commitment to carbon neutrality by exploring recycled energy models and advancing energy-saving technologies," a Hyundai E&C official said.
