[Click eStock] "Gridwiz, DR Trading Volume Surges... Performance Improvement"

On the 5th, Samsung Securities forecasted that Gridwiz, a power solution company, will continue its performance improvement trend due to the rapid growth of the demand response (DR) market. DR is a system where the Korea Power Exchange requests factories or facilities to reduce power consumption in preparation for power shortages, and the factories and facilities are compensated for the reduced power according to the agreement.

Gridwiz is the leading operator in the domestic DR trading market. It currently provides demand management solutions and platforms to over 1,000 clients. It also offers EPC (Engineering, Procurement, and Construction) and operation services related to solar power generation and electric vehicle charging infrastructure. The DR business accounts for 88.5% of total sales.

In the third quarter of this year, sales and operating profit increased by 5% and 7.9% year-on-year, achieving KRW 48.7 billion and KRW 3.6 billion, respectively. Youngho Kim, a researcher at Samsung Securities, analyzed, "The performance improvement was driven by a 42.2% surge in DR reduction volume in July and August this year compared to the same period last year."

Researcher Kim diagnosed, "Recently, as electrification has intensified, the trend of increasing power demand continues, and the importance of the DR trading market is growing due to the increasing share of renewable energy for carbon neutrality."

He added, "The power reduction volume has been rapidly growing at an average annual rate of 289% over the past three years," and forecasted, "As of the cumulative total in August this year, the national DR reduction volume reached 96,000 kWh, which is already 3.3 times the annual reduction volume of last year, indicating that the growth trend of the DR market will continue."