Naju City in Jeollanam-do has been officially designated as a global innovation regulatory free zone by the Ministry of SMEs and Startups, and will actively promote the world’s first ‘commercialization of future direct current (DC)-based power grid platform’ project.
According to the city on the 2nd, after being selected as a candidate site for the global innovation regulatory free zone in December last year, it underwent a review by the Regulatory Free Zone Regulatory Exception Deliberation Committee on the 16th of last month, and was officially designated by the government as the ‘DC Industry Global Innovation Regulatory Free Zone’ on the 30th of last month.
The ‘DC Industry Global Innovation Regulatory Free Zone’ is a project centered on Naju City that will run from June this year until May 2028, aiming to strengthen the global competitiveness of the new energy industry and related companies through the world’s first commercialization of a DC power grid platform.
The city plans to utilize the pre-established MVDC station in the Innovation Industrial Complex to develop technologies and standards by demonstrating and certifying electrical equipment, thereby securing a leading position in the global DC industry market.
Based on the construction of DC distribution network (35kV→5kV→1.5kV) demonstration infrastructure and regulatory exceptions, the project will support domestic companies in securing market dominance by linking product demonstration, certification acquisition, and overseas expansion of DC voltage electrical equipment.
The scope of the global innovation free zone covers an area of 12.1 km² across Naju City, including Bitgaram Innovation City, Naju Innovation Industrial Complex, Naju Dongsu Agricultural and Industrial Complex, and general industrial complexes.
A total of 23 companies, including Korea Electric Power Corporation, Green Energy Institute, Electronics and Telecommunications Research Institute, Jeonnam TP, Korea Electrical Industry Promotion Association, and Iljin Electric Co., Ltd., are participating to conduct various demonstrations such as design, installation, and operation of DC power equipment within the zone.
This project aims to become a global hub for the commercialization of future DC-based power grids by addressing energy self-reliance, proactive energy security, and power demand solutions through phased implementation.
The first phase, from 2024 to 2028, involves building a Live Test-Bed in the Naju Innovation Industrial Complex to complete domestic demonstrations and establish global DC standards.
The second phase, from 2028 to 2029, plans to apply demonstration results to large-scale renewable energy complexes such as the 8.2GW offshore wind power project in the southwestern region, developing the world’s largest DC power grid commercialization model and expanding its outcomes.
The city has set goals to secure a 10% share of the global market through commercialization of the DC power grid platform, capture three world-leading products, and nurture one unicorn company.
It is expected that if DC equipment and operation technologies capture 10% of the global market in the next 10 years, the economic effect will be approximately KRW 47.8 trillion.
Mayor Yoon Byung-tae said, “Naju City is the center of the new energy industry that transmits renewable energy generation such as solar and wind power within the global innovation free zone to the metropolitan and eastern regions,” adding, “Through demonstrations of upcoming distributed energy element technologies and DC distribution network operation, this will be the optimal opportunity to secure a leading position in the global market.”
Naju = Kim Yuk-bong, Honam Reporting Headquarters, Asia Economy baekok@asiae.co.kr
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