In light of the shift towards a decarbonized society where 'local production, local consumption' (지산지소) has gained attention, the South Korean government announces the upcoming launch this year of its next-generation decentralized power grid, aimed at preparing for an era dominated by renewable energy sources. This initiative marks a significant departure from the traditional grid that focused primarily on transmitting electricity from large generation facilities. Instead, it emphasizes the efficient distribution of electricity generated from decentralized power sources like solar energy.

On the 20th of this month, the Ministry of Climate, Energy and Environment plans to convene a forum at the Lotte Hotel in Seoul to discuss the details of this rollout. This forum will bring together relevant companies, public institutions, universities, and associations to collaborate and strategize on the swift establishment of the next-generation power grid, which will be underpinned by an investment of 321 billion KRW from the national budget this year. Given that the current power system was established in 2001 with a focus on large power generators, the emerging landscape of numerous small-scale energy sources necessitates a revised operational framework emphasizing local distribution networks.

To drive forward the development of the next-generation decentralized power grid, the government plans to kick-start regional distribution network innovations. This includes the introduction of energy storage systems (ESS) to enhance flexibility, starting with 20 systems this year and expanding to a total of 85 by 2030, which will facilitate additional solar energy connections. Since the production of renewable energy is affected by weather and other factors, energy storage solutions will be crucial for stabilizing the grid. Once fully implemented, the grid is expected to allow for an additional 485 megawatts (MW) of solar energy connections, supported by an investment of 117.6 billion KRW in ESS construction this year.