LG Electronics Builds Korea's Largest ESS for Peak Load Reduction

KG Dongbu Steel Dangjin Plant Achieves Largest Single-Site Scale
Expected Electricity Cost Savings of Approximately 96 Billion KRW Over the Next 15 Years

[Asia Economy Reporter Lee Hye-young] LG Electronics is accelerating its market penetration by consecutively establishing the largest peak reduction energy storage systems (ESS) in South Korea.

On the 30th, LG Electronics announced that it had built the largest single-site peak reduction ESS in South Korea at KG Dongbu Steel's Dangjin plant in Chungnam in collaboration with Korea East-West Power and held a completion ceremony. The ceremony was attended by Park Sung-hee, CEO of KG Dongbu Steel, Kim Young-moon, President of Korea East-West Power, and Ahn Hyuk-sung, Executive Director of LG Electronics.

The peak reduction ESS stores electricity in batteries during nighttime hours when electricity consumption is low and rates are cheaper, then discharges during daytime peak hours to reduce factory electricity costs.

The ESS established this time is operated by Korea East-West Power and is expected to save about 96 billion KRW in electricity costs over the next 15 years. Expanding peak reduction ESS helps lower peak power demand on the national grid, reduces the operation of backup power plants, and contributes to greenhouse gas reduction.

Considering economic efficiency and performance, LG Electronics built a large-scale peak reduction ESS with a battery capacity of 174.7 MWh and a power conversion system (PCS) capacity of 40 MW. Based on the average monthly electricity consumption of a four-person household in Korea (350 kWh), estimating the average daily consumption per household at 11.7 kWh, the system can store enough electricity to supply about 15,000 households for one day.

In February, LG Electronics established the largest ESS in Korea with a battery capacity of 340 MWh at Anjwa Smart Farm & Solar City in Sinan-gun, Jeonnam. Since 2015, LG Electronics has consecutively built ESS projects including the frequency regulation ESS at KEPCO's Singyerong substation, the renewable-linked ESS at Gyeongju Wind Power in 2017, and the peak reduction ESS at POSCO's Changwon steel plant in 2018.

LG Electronics provides total ESS solutions covering not only products but also design and construction, based on core ESS technologies such as PCS, power management system (PMS), and batteries.

The ESS supplied this time is equipped with LG Electronics' PCS and PMS, and LG Energy Solution batteries. LG Electronics offers a three-year free warranty on all ESS components including the batteries. Through 24-hour monitoring and remote control, it can respond promptly to any abnormalities.

To maximize safety, LG Energy Solution's battery fire spread prevention system was also applied. In case of a battery fire, smoke detectors detect the fire and directly inject water into the affected battery module to block the spread.

Ahn Hyuk-sung, Executive Director in charge of LG Electronics' ESS business, said, “From renewable energy linkage to peak reduction, we provide customers with the best service through ESS total solutions that have been verified for performance, convenience, and safety in various sites.”