Hanwha Solutions' Q CELLS division and POSCO announced on September 21 that they signed a memorandum of understanding (MOU) on September 17 to promote agricultural solar power and establish a domestic industrial ecosystem.
The two companies plan to jointly develop and supply modules and structural packages optimized for agricultural solar power, and to form an alliance among domestic companies to create integrated solutions for agricultural solar power.
Agricultural solar power is a solution that enhances sustainability in rural areas by combining farming and solar energy generation. By optimizing the arrangement and angle of the modules, it provides the necessary sunlight for crop cultivation while generating electricity from excess sunlight.
However, agricultural solar power has not yet been widely adopted and has primarily been implemented through pilot projects. Typically, solar facilities, which can be used for over 30 years, must be dismantled after eight years under existing farmland laws, making it difficult to achieve high returns.
In May, the National Assembly passed a law aimed at promoting and supporting agricultural solar power projects, which was enacted and announced in June. This law extends the maximum permit period for agricultural solar power projects from eight years to 23 years.
As leading companies in the solar and steel industries, Hanwha and POSCO plan to establish a 'Shin-to-Bul-i Alliance' to create a domestic agricultural solar power ecosystem based on this MOU. With the imminent implementation of the agricultural solar power law, which aims to increase renewable energy deployment and rural sustainability, the two companies intend to build a reliable cooperation system among domestic companies that farmers can trust, covering financing, equipment, construction, and electricity sales.
Hanwha Q CELLS will manufacture and supply high-efficiency agricultural solar power modules at its Jincheon plant in North Chungcheong Province. Leveraging its solar business expertise and industry network, it will also provide stable construction and maintenance services. Additionally, it plans to offer electricity sales solutions, including mediating power purchase agreements (PPAs) with renewable energy demand companies and supporting entry into real-time bidding markets.
POSCO will supply structural materials that are resistant to land erosion and tailored to the domestic agricultural environment. Furthermore, it aims to establish standards for agricultural solar power structures in South Korea by developing structures that protect crops and farmland without hindering agricultural activities. The two companies have agreed to jointly develop dedicated modules and structural packages for agricultural solar power based on their respective business capabilities.
Yoo Jae-yeol, head of Hanwha Q CELLS' Korea division, stated, "Agricultural solar power is a win-win solution that can promote the expansion of renewable energy and enhance the sustainability of rural areas. Hanwha Q CELLS will work with POSCO to foster a healthy agricultural solar power market in line with the government's renewable energy expansion policy."
Hong Sam-soo, head of POSCO's cold-rolled marketing division, remarked, "POSCO will actively collaborate with Hanwha Q CELLS to develop structural solutions suitable for the domestic agricultural environment based on our long-standing material technology and business capabilities, contributing to the creation of a related industrial ecosystem."
Meanwhile, the agricultural solar power law will take effect on December 17. After the law is implemented, the process for obtaining permits for agricultural solar power projects will be simplified, treating them as having received temporary use permits for other purposes on farmland.
* This article has been translated by AI.
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