2025. 2. 6. 15:33ㆍKorean Economy
Lee Woo-hyun, Chairman of OCI Holdings, announced that OCI Energy has grown into the No.1 renewable energy developer in Texas and plans to expand into neighboring states this year.
Speaking at the Korea CEO Forum held at the Westin Josun Hotel in Seoul on the 6th, Chairman Lee delivered a keynote speech on the topic: “Global Energy Industry Trends, Korea’s Competitiveness, and Future Directions.”
OCI Energy’s BESS Business and Expansion Plans
During his speech, Chairman Lee highlighted OCI Energy’s Battery Energy Storage System (BESS) business, which integrates solar power generation with energy storage solutions (ESS). By leveraging ESS, power generated from solar energy can be stored and supplied reliably, regardless of weather conditions or time of day. OCI Energy is a subsidiary of OCI Holdings.
OCI Energy has secured a long-term energy supply agreement with CPS Energy, the public utility company serving San Antonio, Texas. Beginning in 2027, OCI Energy will provide 120 MW of solar power, stored in a 480 MWh ESS system, to CPS Energy for 20 years. This energy supply is sufficient to power 41,000 households daily.
Chairman Lee emphasized the stability and profitability of solar development, stating, “Solar projects generate a stable annual return of 6-8%.” He also pointed out the tax incentives available in the U.S., explaining, “The U.S. provides an Investment Tax Credit (ITC) of 30% on capital investments in solar projects. Additionally, using U.S.-made ESS batteries qualifies for an additional 10% tax credit.”
For its CPS Energy project, OCI Energy is utilizing ESS batteries manufactured by LG Energy Solution at its Michigan plant. Under current U.S. regulations, solar power developers using domestic batteries can receive a total tax credit of up to 40% of their investment.
OCI Energy’s Dominance in Texas and Future Growth
Currently, OCI Energy operates 906 MW of solar development projects in Texas and has a total project pipeline of 5.2 GW. Texas has seen a surge in electricity demand, driven by AI data centers and Bitcoin mining operations, making it a high-growth market for renewable energy.
Chairman Lee stated, “With a market share exceeding 10%, OCI Energy has become the No.1 renewable energy developer in Texas. We are now actively expanding into other states.”
He also emphasized the cost competitiveness of solar energy, stating, “While solar power once relied on subsidies, it is now highly competitive. In the U.S., solar power generation costs are approximately half the cost of coal, 30% of natural gas, and 60-70% of nuclear power.”
Potential Impact of a Trump Administration on OCI’s Business
Regarding concerns about potential policy shifts under a possible Trump administration, Chairman Lee expressed optimism, stating that tax incentives for renewable energy projects are separate from the Inflation Reduction Act (IRA) and are unlikely to be affected.
Additionally, he noted that OCI Malaysia’s polysilicon production could benefit from stricter regulations against Chinese-origin solar materials, strengthening the company’s position in the global supply chain.
Korea CEO Forum Highlights Importance of U.S.-Korea Trade Relations
The Korea Enterprises Federation (KEF) is hosting the 3rd Korea CEO Forum, a two-day event under the theme “Navigating the Era of Hyper-Uncertainty Through Innovation.”
In his opening remarks, KEF Chairman Sohn Kyung-shik emphasized the critical role of corporate growth in national economic development. He stated, “Corporate growth directly translates to national economic progress. To support businesses in overcoming uncertainties through innovation, government support is essential.”
He also stressed the need for strengthened U.S.-Korea economic cooperation, particularly in key industries such as semiconductors, batteries, and energy, to ensure that the U.S. remains a reliable trade and investment partner.