GS E&C is strengthening its presence in the renewable energy sector through a partnership with a global infrastructure investment firm as part of a business expansion plan valued at 3 trillion won ($1.5 billion). The initiative reflects the company’s efforts to accelerate its ‘energy developer’ strategy, shifting beyond a traditional engineering, procurement, and construction (EPC) model to become involved from the earliest stages of project development and directly secure power generation assets.
On 22nd June 2026, GS E&C announced that it had entered into a memorandum of understanding (MOU) with global infrastructure investment firm I Squared Capital. Under the agreement, the two companies will establish a renewable energy joint venture (JV) focused on promoting renewable energy businesses within South Korea’s domestic market.
Focus on Solar Power and Battery Storage Projects
The cooperation is centered on a goal of developing and securing a combined 1.5GW of energy transition assets by 2035. The portfolio will primarily focus on solar power and battery energy storage systems (BESS). As part of the broader plan, solar power generation assets are expected to reach approximately 820MW. The total estimated cost of the initiative stands at about 3 trillion won. To fund the projects, the partners are reviewing a structure in which a portion of the capital would be invested directly through the renewable energy JV, while the remaining financing would be secured through external sources, including project financing (PF).
Strategic Shift Beyond the EPC Model
Through the establishment of the renewable energy JV, GS E&C intends to transform its renewable energy business from an EPC-centered structure into a developer-oriented model. This approach is regarded as offering stronger profitability and greater scalability because it enables participation in site acquisition, permissions and authorizations, business structure design, and the securing of business rights and power generation assets from the beginning of a project’s lifecycle.
Under the planned division of responsibilities, GS E&C will oversee new business discovery, site acquisition, permissions and authorizations, business structure establishment, project management, and technical advisory functions. Meanwhile, I Squared Capital will provide support in investment structure design and financing, drawing on its experience in global infrastructure investment.
