Key facts
- South Korea has selected nine operators for a new energy storage project.
- The project will install 128MW/640MWh of energy storage systems (ESS) along 32 transmission lines.
- This will enable the integration of an additional 182.4MW of solar power.
- The initiative aims to address grid capacity constraints in regions with abundant renewable energy.
- South Korea plans to deploy 700MW of ESS, connecting 1GW of renewable energy by 2030.
The South Korean government has selected nine operators for a new energy storage deployment project aimed at integrating more renewable energy into the power grid. The selected operators will install a total of 128MW/640MWh of energy storage systems (ESS) across 32 transmission lines, which will enable the integration of an additional 182.4MW of solar power. The Ministry of Climate and Energy (Mcee) announced the selections on July 10. The operators include VPP Lab, LG Energy Solution (LGES), KEPCO KDN, SK Eternix, HD Hyundai Electric, Gridwiz, Korea East-West Power, Korea Midland Power, and Hyundai Engineering and Construction. Each transmission line will feature a 4MW/20MWh ESS installation capable of accommodating 5.7MW of solar power. This initiative seeks to address capacity constraints in regions like Honam and Jeju, where renewable energy generation is high, preventing new solar facilities from connecting to the grid and causing curtailment for existing ones. By using ESS as buffers, South Korea can increase its grid capacity without the significant costs, time, and public acceptance challenges associated with building new transmission lines. The ministry plans to deploy a total of 700MW of ESS, connecting 1GW of renewable energy by 2030. A subsequent call for proposals in August will focus on next-generation batteries with improved lifespan, durability, and safety, building on the current round's focus on ternary and lithium-iron-phosphate chemistries. This project is expected to foster new markets for South Korea's domestic energy storage industry. Leading battery manufacturers LGES, Samsung SDI, and SK Innovation are pursuing aggressive ESS expansions amid a slowdown in the electric vehicle market, with LGES considering doubling its global ESS production capacity to 60GWh this year.