Korea ESS policy, market and forecast Yu-Tack Kim

Korea Battery Energy Storage system Policy, Market and forecast 2019-01-05 Version 0.1 Dr. YU TACK, KIM Origin of ESS Era 1) Battery applications expansion 1990~ : IT 2010~ : Electric Vehicles 2020~ : Energy Storage system 2025~ : Aerospace Small Picture Large Picture 1 Introduction of ESS Origin of ESS Era 2. Energy Efficiency EES reduces electricity costs by storing electricity obtained at off-peak times when its price is lower, for use at peak times instead of electricity bought then at higher prices Small Picture Large Picture 1 Introduction of ESS Origin of ESS Era 3. Reliability and Safety In order to improve the reliability of the power supply, EES systems support users when power network failures occur due to natural disasters Small Picture Large Picture 1 Introduction of ESS Origin of ESS Era 4. Smart Grid(Upgrade grid system) Advanced grid system using IT technology of real time information and one-way communication closed business platform, then both-way communication and open business platform Small Picture Large Picture 1 Introduction of ESS Origin of ESS Era 5. COP(Conference of the Parties) 21 CO2 reduction to prevent global warming around 2℃ Scenario. Climate Action establishes and builds partnerships between business, government and public bodies to accelerate international sustainable development and advance the ‘green economy’. Small Picture Large Picture 1 Introduction of ESS ESS Policy R&D, Demonstration, Business 2011 : K-ESS R&D Roadmap 2012 : ESS supply business model 2013 : ICT + ESS for energy efficiency 2014 : New Energy Industry 2015 : COP21 2017 : Renewable Energy 3020 Small Picture Large Picture 1 ESS Policy in Korea ESS Policy New growth engine in Korea ESS is core technology for Smart grid with EV, Smart Factory, HVDC Smart grid is basic technology for micro- grid, Eco building, Zero house, Energy efficiency, Power generations with Renewable power generation Small Picture Large Picture 1 ESS Policy in Korea ESS Policy 8 ESS Business model Smart factory ESS service provider Zero House & Building Micro-grid, Carbon free island PV EV and charge service Smart Town house Nega-watt, Demand response Small Picture Large Picture 1 ESS Policy in Korea ESS Policy Renewable Energy 3020 PV * 3.5 hours = ESS Capacity W.T * 0.1% = ESS capacity For grid stabilization and renewable reliability and safety Small Picture Large Picture 1 ESS Policy in Korea ESS Market ESS Capacity vs Business model 2013 : Subside program for Building 2014 : Frequency regulation 2015 : W.T + ESS REC incentive 2016 : PV + ESS REC incentive Emergency ESS 2017 : Special tariff for ESS Public building mandatory Small Picture Large Picture 1 ESS Market in Korea ESS Market Global market grows to 7.9GWh 2017 : around 1GWh 2018 : around 3GWh 2019 : around 5GWh But, Fire issues in Korea 2018 Small Picture Large Picture 1 ESS Market in Korea ESS Market ESS installation site 1,267 Sites for 2018 Special Tariff (KEPCO) PV + ESS W.T + ESS Frequency Regulation Small Picture Large Picture 1 ESS Market in Korea No. Applications PCS (MW) Battery (MWh) Site 1 Special Tariff 600.3 2,554.1 (59%) 586 2 PV + ESS 423.6 1,351.5 (31%) 602 3 Wind + ESS 89.3 280.7 (6%) 25 4 Frequency Regulation 428.0 129.5 (3%) 15 5 Emergency Power 9.7 26.6 (1%) 18 6 Island 3.6 12.7 (0%) 18 7 Distribution 5.0 10.0 (0%) 3 Total 1,559.5 4,365.10 1,267 No. Applications PCS (MW) Battery (MWh) Site 1 PV + ESS 423.6 1,351.5 602 (48%) 2 Special Tariff 600.3 2,554.1 586 (46%) 3 Wind +ESS 89.3 280.7 25 (2%) 4 Frequency Regulation 428.0 129.5 15 (1%) 5 Emergency Power 9.7 26.6 18 (1%) 6 Island 3.6 12.7 18 (1%) 7 Distribution 5.0 10.0 3 (0%) Total 1,559.5 4,365.10 1,267 Forecast Go further R&D Design Installation & Commissioning Operations & Maintenance Incident Response Safety Outreach Small Picture Large Picture 1 Forecast 谢谢 Thanks for Your Time