As Korea's renewable energy buildout accelerates and the institutional architecture of its energy market continues to evolve, IGIS Asset Management is sharpening its investment execution capabilities through CEIF II — with long-duration ESS¹⁾ and fuel cells at the center of its strategy. Drawing on the operating experience built through its predecessor fund, CEIF II is designed to capture durable investment opportunities at a genuine inflection point in the energy transition.

1) Long-duration ESS: Large-scale energy storage systems capable of discharging electricity for extended periods, typically four to eight hours or longer.

Portfolio Construction Strategy for CEIF II

1. Policy-Anchored, Long-Term Contracted Assets

CEIF II is focused on projects underpinned by Korea's policy-driven energy markets — principally the Korea Power Exchange's ESS Centralized Contracting Market and the General Hydrogen Power Bidding Market. With long-duration ESS and fuel cells as its core asset classes, the fund seeks to build a portfolio anchored by long-term contracted revenue streams.

2. Early-Stage Entry to Secure Quality

A strategic allocation of the fund's capital is directed toward projects at the development stage. Early-stage participation allows the fund to access higher-quality opportunities before they reach broader market competition, while enabling active involvement in project structuring and improving overall investment efficiency.

3. Execution-Driven Portfolio Construction

- Tender market focus: The fund actively participates in policy-based procurement processes to secure long-term contracted assets with strong structural foundations.

- FI-led consortium formation: Through partnerships with key industry players, the fund engages as a financial investor from the early stages of project development — enhancing both bidding competitiveness and project resilience.

- Systematic risk management: Leveraging accumulated project experience, the fund applies disciplined cost management and risk controls throughout the project lifecycle to build robust, defensible structures.

Core Asset Classes of CEIF II

1. Long-Duration ESS: The Infrastructure Backbone of Grid Stability

Grid stability is no longer a future consideration — it is an immediate operational challenge. As renewable penetration deepens, the need for large-scale energy storage has moved from policy aspiration to market necessity. The government's 11th Basic Plan for Electricity Supply and Demand points to a requirement of approximately 23GW of long-duration ESS capacity by 2038, underscoring the scale of deployment ahead.

CEIF II targets long-duration ESS opportunities in regions where policy-driven demand is most concentrated. The Honam and Jeju regions are of particular focus, given their acute grid reinforcement needs. The government has signaled plans to procure approximately 0.5GW of mainland capacity annually from 2026 to 2029, with priority directed at grid-constrained areas including Honam.

Building on IGIS Asset Management's track record in prior long-duration ESS tenders, the firm will continue to pursue opportunities that align with both policy direction and the structural demand for grid stabilization as the market scales.

2. Fuel Cells: Contracted Cash Flows in the Hydrogen Economy

Where long-duration ESS addresses the grid stability challenges created by variable renewable generation, fuel cells occupy a distinct and complementary role: distributed generation embedded within the government's hydrogen economy framework.

Fuel cells are particularly well suited to metropolitan areas, where electricity demand is dense and energy self-sufficiency relatively low. Their high power output per unit area — combined with the ability to stabilize local supply and demand — makes them a strategically attractive asset in urban energy infrastructure.

This profile aligns closely with prevailing policy direction. The General Hydrogen Power Bidding Market and the Clean Hydrogen Portfolio Standard (CHPS) provide an institutionalized offtake framework for hydrogen-sourced electricity, while parallel policies promoting distributed energy are driving regional adoption of on-site generation. With 20-year contract terms under the General Hydrogen Power Bidding Market, fuel cell projects offer the kind of long-horizon cash flow visibility that anchors a stable infrastructure portfolio.

IGIS Asset Management will continue to develop fuel cell projects as a core return driver of CEIF II, pursued through consortiums with key partners and grounded in its established track record in the hydrogen bidding market.

The Role of the CEIF Series in Energy Transition

As the flagship infrastructure fund series of IGIS Asset Management, the CEIF platform has consistently positioned itself at the frontier of policy-driven energy infrastructure — participating in emerging markets as institutional frameworks have taken shape.

The ESS Centralized Contracting Market and hydrogen power bidding markets are gaining momentum, and the pipeline of long-term contracted opportunities is set to expand. At the same time, sustained volatility across financial markets is reinforcing investor demand for infrastructure assets characterized by predictable, policy-backed cash flows.

Grounded in the execution experience and track record built through the CEIF series, IGIS Asset Management will continue to pursue investment opportunities that balance stability with growth — as a committed and capable partner in Korea's structural energy transition.

Written by Soyeong Park, Brand Communications Manager

Materials provided and reviewed by Infrastructure Strategy Part 1

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