LG Energy Solution In-house Company Able
"Expansion of Nationwide Distribution Network ESS Power Plants"
LG Energy Solution's in-house independent company AVEL is establishing and operating a distribution network-connected energy storage system (ESS) power plant.
On the 5th, AVEL held a completion ceremony for the ESS power plant in Seogwipo City, Jeju Island, and announced that it would embark on a full-scale energy grid integration management business. This power plant is characterized by directly linking and operating the 'renewable energy-ESS-local distribution network.' Irregularly generated renewable energy is first stored in the ESS, and electricity is supplied through the local distribution network when needed.
LG Energy Solution's in-house independent company AVEL held a commercial operation ceremony for a standalone ESS connected to power distribution on the 5th in Seogwipo, Jeju Island. From the left: Hwang Wonpil, CEO of AVEL; Jung Hyukseong, Executive Vice President of Business Development at LG Energy Solution; Lee Junho, Vice President of Korea Electric Power Corporation; Jung Jaecheon, Head of Jeju Headquarters (Photo by LG Energy Solution)
The power plant has a total capacity of 6.3 megawatt-hours (MWh), enough to supply about 600 households of four people each for one day.
Renewable energy has high volatility depending on the weather, causing excess generated power to be wasted when production exceeds expectations, and insufficient generation can lead to large-scale blackouts. Especially in Jeju Island, where the use of renewable energy is high, when energy generation increases, it has been difficult to manage, responding by disconnecting generators and transmission/distribution networks through 'output limitation.'
AVEL solves these problems by utilizing ESS, renewable energy grid integration management technology, and the local distribution network. While ESS linked to solar power plants can only charge and discharge at designated times depending on the weather, linking the distribution network allows charging and discharging without time constraints and enables more flexible responses to the power exchange's dispatch instructions.
AVEL expects the new power plant to serve as a 'grid control tower' that accurately predicts the supply and demand of renewable energy to reduce volatility and enhance the stability, reliability, and economic efficiency of the power system.
Additionally, AVEL signed a memorandum of understanding (MOU) with Korea Electric Power Corporation (KEPCO) on the same day to promote ESS activation. They plan to contribute to power grid stabilization through close collaboration in various fields, including developing new power business models for ESS activation, institutional improvements, and technology development.
Hwang Wonpil, CEO of AVEL, said, "The new power plant will significantly reduce the volatility and uncertainty that have occurred during the renewable energy acquisition process, increasing the value of renewable energy utilization within the Jeju region. We plan to actively expand the distribution network-connected ESS power plant business nationwide."
Meanwhile, AVEL was launched in 2022 as LG Energy Solution's first in-house independent company, accumulating experience in power generation business permits, site acquisition, and power grid integration management technology. Earlier this year, it participated as the largest power brokerage operator in Korea in the Jeju renewable energy bidding system pilot project for power market institutional improvement. In March, it became the first in the industry to obtain ESS power plant permits, and since June, it has officially participated in Jeju's renewable energy bidding system, achieving tangible business results through power brokerage.
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