[Exclusive] Five Years Since ESS Mandate... Public Institutions' Adoption Rate Only 20%

70 Public Institutions Equipped with ESS... Installation Compliance Rate Only 19.8%
'Energy Efficiency' Key Infrastructure... Installation Mandated Since 2017
"Doubts on Responsible Ministry's Commitment... Installation Plans Must Be Strictly Managed"

Energy Storage System (ESS) under development by Hyundai Motor Group. The photo is unrelated to specific expressions in the article. [Photo by Asia Economy DB]

[Asia Economy Sejong=Reporter Lee Jun-hyung] It has been five years since the government mandated the installation of energy storage systems (ESS) in public institutions, but the adoption rate remains at only 20%. Since ESS is a core infrastructure of the government’s ongoing ‘energy demand efficiency’ policy, there are calls for the Ministry of Trade, Industry and Energy, the main responsible agency, to accelerate its deployment.

According to data submitted by the Korea Energy Agency to Rep. Yang Geum-hee of the People Power Party on the 6th, as of last August, 70 public institutions had installed ESS. Considering that 353 public institutions are required to have ESS, the adoption rate is only 19.8%. The number of institutions installing ESS has remained below 20 annually, with 14 in 2018, 9 in 2019, 19 in 2020, and 12 last year.

ESS is equipment that stores energy and releases it when needed. By charging electricity during periods of low power consumption and discharging it during peak demand times, energy efficiency can be maximized. It also has the advantage of providing stable electricity supply during peak power times.

Accordingly, the government mandated the introduction of ESS in some public institutions in 2017. According to the ‘Regulations on the Promotion of Rational Energy Use in Public Institutions’ enacted in November 2017, public institution buildings with contracted power of 1000 kW or more must install ESS capable of storing at least 5% of the contracted power.

Initially, the government set the project end date as 2020, but even then, the ESS adoption rate in public institutions was low at 20%. This was the reason the government extended the project deadline by three years through amendments to related regulations, citing notices from the Fire Agency. However, this year, the ESS adoption rate in public institutions remained at 20%. It means that two years after the government extended the project deadline, the adoption rate has stagnated.

This raises questions about the government’s commitment to ESS adoption. In fact, the previous administration did not actively pursue the ESS project. The ‘ESS Demonstration Research for Power Peak Response’ project, which received 1.3 billion KRW from the electricity fund in 2017, had no budget allocated from the following year onward.

Rep. Yang said, “Despite extending the installation deadline once through regulatory amendments, the adoption rate was only 20%,” and criticized, “It is questionable whether the Ministry of Trade, Industry and Energy has the will to properly enforce the notice.” She added, “The ministry must thoroughly manage the implementation plans for ESS installation in public institutions with a responsible attitude to stabilize power supply and demand.”