The government is set to auction a total of 1,180 megawatts (MW) of energy storage systems (ESS) through the central contract market. In Jeju, a new 25-year contract model will be introduced for long-life, multi-charge ESS.
The Ministry of Climate, Energy, and Environment announced on September 22 that it will open the '2026 ESS Central Contract Market' to select ESS power producers totaling 1,180 MW.
ESS facilities store electricity generated during peak production times and discharge it during high demand periods. They are utilized to stabilize the power grid as renewable energy sources expand.
From 2023 to the first half of this year, the government held three central contract markets, selecting ESS power producers totaling 1,196 MW. With this upcoming auction, the total capacity selected through the central contract market will reach 2,376 MW.
This market will consider the ESS requirements outlined in the 11th Basic Plan for Power Supply and Demand, selecting 1,100 MW for the mainland and 80 MW for Jeju. Selected producers must establish their ESS by February 2029.
The scope of eligible project areas will also expand. Previously, the installation of ESS was limited to system management substations, but this auction will include other substations where the need for ESS has been recognized based on nationwide system analysis.
Substations that significantly reduce system overload will be publicly disclosed to encourage the installation of ESS in areas where it is needed. The existing evaluation criteria for 'output control level' and 'contribution to system stabilization' will be consolidated into 'contribution to system stabilization.'
In Jeju, the new 25-year contract model will allow producers to choose a contract for facilities capable of charging and discharging twice a day over 25 years, compared to the previous 15-year contract period. This measure considers the potential for ESS charging demand during both day and night due to the high proportion of wind power generation in Jeju. The ministry explained that the new contract model aims to secure ESS that can reliably undergo long-term repetitive charging and discharging.
The bidding process will continue until November 11, with winners expected to be selected in November.
* This article has been translated by AI.
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