Implementation of Renewable Energy Generation Forecasting System Starting Next Year

Revision of Electricity Market Operation Rules on the 18th... Preparation for System Introduction Completed
Demonstration Test and IT System Construction... Full-scale Implementation in the First Half of Next Year

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] The government will introduce a renewable energy generation forecasting system and fully implement it starting next year.

The Ministry of Trade, Industry and Energy and the Korea Power Exchange announced on the 18th that they have finalized the amendment to the Electricity Market Operation Rules through the Electricity Committee review.

The forecasting system requires solar and wind power producers with 20MW or more capacity to predict and submit their renewable energy generation one day in advance. If they meet the forecast within a certain error margin on the day, they will receive settlement payments.

◆Cost Reduction Due to Renewable Energy Variability... Efficient Grid Operation

Source: Ministry of Trade, Industry and Energy

The Ministry of Trade, Industry and Energy expects that the forecasting system will reduce costs associated with additional startup/shutdown or output adjustment of generators caused by the high variability of renewable energy. This is anticipated to enable more efficient operation of the power grid.

The forecasting system is also expected to contribute to the expansion of new business models such as ▲collection, processing, and utilization of weather information for generation forecasting ▲real-time information acquisition through Internet of Things (IoT) technology ▲generation control using energy storage systems.

The International Energy Agency (IEA) has recommended securing forecasted generation for individual solar and wind power plants, highlighting the increasing importance of accurate renewable energy generation forecasting capabilities.

According to the Ministry, the UK operates an incentive and penalty system for wind power forecast errors, Germany has a renewable generation bidding system, and Australia implements a renewable generation self-forecasting technology evaluation system. These are similar to Korea’s forecasting system.

Source=International Energy Agency·Ministry of Trade, Industry and Energy

◆If the Forecasting System Works Well, Bidding System Introduction Will Be Considered... Utilization in Renewable Energy Power Market and Grid

The Ministry and the Power Exchange plan to hold a briefing session for operators in October and start a pilot test in November. After establishing the related IT system at the Power Exchange, the forecasting system will be fully implemented from the first half of next year.

The Ministry expects the forecasting system to serve as a pilot model for the 'renewable energy generation bidding system.' Introducing the bidding system will allow renewable energy to be utilized in the power market and grid just like conventional power generators.

An official from the Ministry stated, "We plan to review the introduction of the bidding system based on the operational performance after the forecasting system is implemented."