The government is set to tackle grid access challenges in renewable energy-rich regions such as Honam and Jeju by advancing the distribution network energy storage system (ESS) project. This initiative aims to enhance the capacity of existing power grids without the need for new distribution lines, utilizing ESS as a buffer.
On July 10, the Ministry of Climate, Energy, and Environment announced the commencement of the 'Distribution Network ESS Support Project' by signing a memorandum of understanding with nine selected companies at the Korea Electric Power Corporation's Gyeongin Construction Headquarters. The project aims to reduce grid constraints on renewable energy, particularly in Honam, and expedite the connection of solar power plants awaiting grid access.
In regions like Honam and Jeju, where renewable energy is concentrated, the capacity of substations and distribution lines has reached saturation, leading to instances where new solar power facilities cannot connect to the grid and existing plants must reduce output based on grid conditions.
In response, the government announced a plan in July 2022 to establish a 'Korean-style next-generation power grid' and secured 558.6 billion won in national funding from 2026 to 2030 to develop alternatives based on distribution network ESS. The newly introduced project will install ESS directly on distribution lines to increase power capacity without expanding the grid.
Specifically, the project will install a 4MW, 20MWh ESS at one distribution line to facilitate the early connection of an additional 5.7MW of solar power that is currently awaiting grid access. During peak solar hours, the ESS will store energy to alleviate the burden on the distribution network, and during high demand or when grid capacity is available, it will discharge stored energy to enhance the existing grid's capacity.
The ministry plans to deploy approximately 700MW of ESS by 2030, enabling an additional 1GW of renewable energy to connect to the grid. This is expected to allow for the generation of an additional 1,350GWh of solar energy annually, averaging 3.7GWh per day.
In the first round of applications, a total of 14 integrated power plant operators submitted requests for 82 distribution lines. Ultimately, nine companies, including VPP Lab, LG Energy Solution, KEPCO KDN, SK Eteronics, HD Hyundai Electric, GridWiz, Korea East-West Power, Korea Central Power, and Hyundai Engineering & Construction, were selected. They will establish 128MW, 640MWh of ESS across 32 distribution lines, facilitating the connection of an additional 182.4MW of solar power that is currently awaiting access.
The ministry also plans to encourage the entry of next-generation batteries with advantages in long life, long duration, and fire safety in future applications. The next round of applications is scheduled for August, targeting about 50 distribution lines on the mainland and seven in Jeju, with around 20 lines expected to be selected.
This initiative highlights that the bottleneck in expanding renewable energy is not merely a lack of generation capacity but rather insufficient grid capacity. Even as solar installations increase, if the distribution network cannot accommodate them, delays in connection and output control will persist. The approach of directly integrating ESS into the distribution network serves as a short-term solution that minimizes the time and community acceptance issues associated with expanding transmission and distribution networks.
Minister of Climate, Energy, and Environment Kim Sung-hwan stated, "This project will directly address the grid access issues that have been bottlenecking the distribution network and serve as a milestone in paving a new path for renewable energy. We will establish a system that integrates ESS and renewable energy to stabilize the power system and expedite the era of renewable energy as a primary power source."
* This article has been translated by AI.
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