South Korea’s ESS stimulus to drive local demand up by US$390 million

September 19, 2016
LinkedIn
Twitter
Reddit
Facebook
Email

South Korean utility KEPCO’s ESS is the world’s largest frequency regulation project – the South Korean givernment is rewarding solar plant operators for more of the same. Source: Kokam
South Korea will create 440 billion won (US$390 million) worth of new demand for energy storage systems (ESS) by 2020, according to the South Korean government, after it unveiled a plan to reward solar plant operators for installing energy storage facilities.

From 2017, the South Korean Ministry of Trade, Industry and Energy will allocate additional points on operators’ renewable energy certificates, granted for renewable energy, for establishing bulk ESS, according to the South Korea’s state news agency.

The stimulus follows a similar government initiative for wind farms last year. The ministry said the benefit programme is aimed at encouraging local power operators to save energy in large-scale batteries and efficiently distribute the power.

The total installed base for ESS in South Korea stood at around 30MWh in 2013, and jumped to 240MWh in 2015.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The South Korean government has earmarked 40 trillion won (US$35.7 billion) for the renewable energy sector over the next five years, as it attempts to reduce the country’s reliance on fossil fuels. It will shut down 10 obsolete coal-powered plants in the country during the period, and supplement their closures by delivering 6% of total power from green energy sources by 2020.

The Koreaan Electric Power Corporation (KEPCO) is working already with Korean battery provider Kokam to install 500MW of battery storage for frequency regulation by 2017.

Kokam said in August it is developing a 36MW/13MWh energy storage system for KEPCO, based on Nickel Manganese Cobalt (NMC) and NANO battery technologies, with work scheduled to finish in December.

In parallel, the pair announced in March they will install a two lithium nickel manganese cobalt (NMC) oxide battery – a 24MW (9MWh) and a 16MW (6MWh) system – in a project billed as the largest of its kind.

6 October 2026
Warsaw, Poland
The Energy Storage Summit Central Eastern Europe is set to return in September 2025 for its third edition, focusing on regional markets and the unique opportunities they present. This event will bring together key stakeholders from across the region to explore the latest trends in energy storage, with a focus on the increasing integration of energy storage into regional grids, evolving government policies, and the growing need for energy security.

Read Next

Premium
April 27, 2026
Energy-Storage.news Premium speaks with Pablo Barague, vice president of partnerships & commercial development, and Sam Harper, vice president of marketing & brand, at immersion cooling energy storage company EticaAg.
April 27, 2026
Utility Georgia Power has filed a request with the Georgia Public Service Commission (PSC) to approve an all-source capacity request for proposal (RFP) for 2,000MW – 6,000MW of new dispatchable capacity resources in the US state.
April 24, 2026
Developer-operator Plus Power and utility Tennessee Valley Authority (TVA) announced a 20-year energy storage agreement (ESA) for the 200MW/800MWh Crawfish Creek battery energy storage system (BESS) in Alabama, US.
April 23, 2026
Two US battery recycling companies, Redwood Materials, and Ascend Elements, are in less than optimal situations, with Redwood laying off 135 employees, and Ascend filing for Chapter 11 bankruptcy.
April 22, 2026
Bobwhite Energy Storage, an affiliate of independent power producer (IPP) Tenaska has signed a long-term energy storage agreement (ESA) with utility Tennessee Valley Authority (TVA) for a 225MW/900MWh project in East Tennessee, US.