Ministry of SMEs and Startups "Electricity Trading Notice Revision Completed... ESS Operators Can Trade Directly"

ESS Operators in the Free Zone
Now Able to Trade Directly with Consumers

Gwangju Green Energy ESS (Energy Storage System) power producers can now supply electricity directly to consumers without going through Korea Electric Power Corporation (KEPCO).

On the 9th, the Ministry of SMEs and Startups announced that the "Notice on Direct Electricity Trading of Renewable Energy Electricity," which includes provisions on the implementation of renewable energy electricity supply businesses, has been revised, resulting in the final improvement of regulations. This was carried out as part of the "Gwangju Green Energy ESS Power Generation Regulatory Free Zone" (Free Zone) demonstration project.

Until now, there was no legal basis for renewable energy ESS power producers to trade electricity directly, so most electricity generated from solar, wind, tidal power, etc., was restricted to being traded to consumers only through KEPCO. Consequently, the Free Zone was designated in 2020, and a demonstration project was promoted to prove the stability of ESS power storage facilities and direct electricity trading, allowing renewable energy generated and stored in ESS and other electricity storage devices to be supplied directly to electricity sales businesses, users, or electric vehicle charging customers.

The Free Zone operators expanded solar power facilities with capacities of 250 kW and 118 kW, respectively, and supplied and sold 600 kW of renewable energy produced there to electric vehicle charging stations and public buildings. This established a successful business model for the "distributed resource brokerage market." It is expected to greatly contribute to the utilization of ESS in the electricity market and the activation of a distributed power market based on renewable energy in the future.

Lee Gwi-hyun, head of the Free Zone Innovation Planning Group, said, "Through the Green Energy ESS power generation Free Zone, specific regulations on direct electricity trading of renewable energy electricity have been established, and regulations have been timely improved." He added, "We will continue to strive to build a self-reliant and sustainable growth foundation for the region through the operation of regulatory free zones tailored to local characteristics."