Hyundai Electric acquires power converter maker to strengthen renewable energy capabilities

Kim Joo-heon Reporter() | Posted : Febuary 4, 2022, 17:55 | Updated : Febuary 4, 2022, 17:55

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SEOUL -- Hyundai Electric, an electrical equipment manufacturer and energy solution provider, will acquire a controlling stake in Plaspo, a domestic power conversion system manufacturer, in a deal aimed at strengthening technological competitiveness in its renewable energy business.

Using Plaspo's expertise, Hyundai Electric will develop its own energy storage system (ESS), which is a container-sized large-capacity modular battery pack used in the renewable energy generation sector to store power when solar or wind power plants are active. The system can also store energy when the electricity is cheap at night times and distribute electricity to local electricity grids when power is not generated.

Hyundai Electric, affiliated with South Korea's Hyundai shipbuilding group, said in a regulatory filing on February 4 that the company would acquire a 61.8 percent stake in Plaspo for 22.87 billion won ($19.1 million), "to expand renewable energy business opportunities by adding product lineups such as power conversion equipment."

After acquiring 53.8 percent of the old shares held by existing shareholders, Hyundai Electric will acquire additional shares through a paid-in capital increase. Founded in 2001, Plaspo has carried out various eco-friendly power generation projects using inverters of solar and wind power generation and fuel cells. 

"We will solidify our position in the renewable energy solution market by combining Plaspo's power generation techniques with Integrict," Hyundai Electric's spokesperson Roh Soo-min told Aju Business Daily. Integrict is an integrated information and communication technology (ICT) platform that can remotely manage various energy facilities. 

Hyundai Electric would develop ESS for distributed generation that refers to a variety of technologies that generate electricity at or near where it will be used, such as solar panels and combined heat and power. Growing awareness about clean sources of energy is expected to enhance the demand for distributed energy generation systems.

When connected to the electric utility’s lower-voltage distribution lines, distributed generation can help support the delivery of clean, reliable power to additional customers and reduce electricity losses along transmission and distribution lines. 
 
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