Renault Samsung Motors said on Wednesday a new solar power station would start generating 25 million kilowatt-hours annually within the premises of its auto plant in Busan.

The 20-megawatt solar power plant is the world’s biggest of its kind built at a factory site and can supply enough electricity for the 8,300 households in Myeongji, a new town near the Busan factory, the carmaker said.

A special purpose company established by Korea East-West Power Co., KB Cottrell and KC Asset Management broke ground for the new facility in July last year.

The 56 billion won ($49 million) solar power plant was built over Renault Samsung’s auto delivery grounds and factory roofs spanning some 300,000 square meters.

The facility will reduce carbon dioxide emissions by 10,600 tons per year, having the same effect as planting 3.8 million pine trees, the company said.

“We expect the solar power plant to be an exemplary case of eco-friendly, alternative energy development at a time when securing electricity reserves has become critical as power shortages worsen,” said a Renault Samsung official.

The carmaker’s chief executive Francois Provost said that based on a consistent concern for alternative energy, his company would roll out a 100 percent electric car ― the SM3 Z.E. ― from the Busan plant in the second half of this year.

“As we lead an environment-friendly auto culture, Renault Samsung Motors will continue to carry out projects related to eco-friendly, alternative energy including electric cars,” Provost said during the ribbon-cutting ceremony on Wednesday attended by about 200 officials of involved companies, the Ministry of Trade, Industry and Energy, and Busan City.

The SM3 Z.E. was showcased at the ceremony.

Since January last year, Renault Samsung has been running a 1-megawatt solar power station at its components center in Haman, South Gyeongsang Province.

By Kim So-hyun (sophie@heraldcorp.com)