South Korea-based renewable energy developer SK D&D has signed a memorandum of understanding (MoU) with energy fund manager Glennmont Partners to invest in solar photovoltaic (PV) projects in South Korea.

Under the terms of the MoU, the two companies will make a capital investment of around KRW200bn ($153m) in the projects.

SK D&D Energy Solution Business division head Harrison Kim said: “The electricity trading business requires having solar PV assets, and we started to discuss co-investment opportunities with one of the leading renewable energy funds, Glennmont Partners from Nuveen .

“SK D&D will establish a virtual power plant platform by acquiring a large number of power generation assets, forecasting yield and utilising digital operations and maintenance (O&M) solutions.”

SK D&D will be involved in sourcing, project managing and operating the solar facilities, while Glennmont will be responsible for raising debt financing and selling the projects to end buyers.

In addition, SK D&D intend to enter the electricity trading business and leverage data from the assets that are to be acquired from the potential co-investments.

Glennmont managing partner and CEO Joost Bergsma said: “We are delighted to sign this MoU with SK D&D, which will see us enter the South Korean renewables market.

“This is a landmark agreement for Glennmont as we look to grow our operations in Asia and establish long-term relationships with key partners that we can work with on multiple projects.

“As we continue to expand into new geographies, this will be a core part of our strategy to deliver value for investors and accelerate the energy transition.”

In September last year, Glennmont Partners finalised its acquisition of a 473MW solar portfolio in central and southern Spain from Grupotec.

The company is owned by Nuveen, a US-based asset manager owned by financial planning firm TIAA.