Government Invests 10 Billion Won to Discover Distributed Energy Sources

'Distributed Energy' Produced Near the Area
Supporting Integrated Power Plant and ESS Business Companies

The government will invest 10 billion KRW this year to discover distributed energy projects.

The Ministry of Trade, Industry and Energy began the "2024 Future Regional Energy Ecosystem Activation" project on the 30th. The goal of this project is to promote the discovery of business models in the distributed energy sector. It supports companies pursuing new businesses such as integrated power plants and energy storage systems (ESS).

Distributed energy refers to energy generated near the regions where it is used, rather than from large-scale power plants. It eliminates the need for long-distance transmission networks and significantly reduces various infrastructure construction costs.

The total project cost is 10 billion KRW. It is funded through a matching system of national funds, local government funds, and private contributions. Eligible applicants are consortia led by small and medium-sized enterprises, mid-sized companies, or non-profit organizations engaged in distributed energy projects. If pursuing new businesses in the distributed energy sector that reflect regional characteristics, they can receive up to 2 billion KRW annually (with a 70% national subsidy rate) to cover necessary project expenses.

Applications are accepted from today until March 20. On the 1st of next month, an explanatory session will be held at The-K Hotel in Seocho-gu, Seoul, to promote the project and enhance corporate understanding.

Meanwhile, the Distributed Energy Activation Special Act will be enforced starting in June. This act was proposed to overcome the limitations arising from constructing large-scale power plants and long-distance transmission networks. It focuses on mandatory installation of distributed energy and the establishment of specialized regional systems.

An official from the Ministry of Trade, Industry and Energy emphasized, "Before the full enforcement of the special act, it is necessary to discover creative and diverse distributed energy projects led by companies," and added, "We will operate the system to establish a regional-based distributed energy production and consumption system."