[Report] "Buying and Selling Electricity with Electric Vehicles"... Will Jeju Succeed in Its 2035 Carbon Neutrality Challenge?

Producing Marine Green Hydrogen with Wave and Wind Power
Supplying Heating and Cooling with Surplus Renewable Energy
Jeju Targets Carbon Neutrality by 2035
Green Hydrogen and Distributed Energy Partnership with Hyundai Motor Group
V2G Expected

On September 26, looking out to sea from the coast of Yongsu-ri, Hangyeong-myeon, Jeju, a structure with black and red stripes could be seen in the distance. Many travelers to this area often mistake this structure for a submarine, but it is actually Asia's first 5-megawatt (MW) class marine green hydrogen production facility. Here, electricity is generated by harnessing the power of waves to spin turbines, and that electricity is then used to electrolyze water and produce hydrogen.

The Jeju Wave Power Test Site located in the sea off Hangyeong-myeon, Jeju City. Jeju Provincial Government

The marine green hydrogen production facility is located 1.2 kilometers offshore. Although it appears small to the naked eye, it is actually quite large, measuring 10 meters wide, 32 meters long, and 23 meters high. It is anchored 16 meters below the sea surface. Inside, there is a 250-kilowatt (kW) power generation facility, a control room, and an electrical room.

Since 2022, more than ten institutions and companies, including the Korea Research Institute of Ships & Ocean Engineering, have been conducting demonstration projects here to produce green hydrogen using marine energy sources such as wave and wind power. Currently, only wave power is used to produce hydrogen. As the waves move up and down periodically, air inside the generator is compressed, and the compressed air spins a turbine to generate electricity.

Jeju Western Agricultural Technology Center is cultivating crops using the Power-to-Hydrogen (P2H) system. Jeju Provincial Government.

In the future, floating offshore wind power facilities will be added nearby, so that both wave and wind power can be used simultaneously to produce green hydrogen. Lim Changhyuk, a senior researcher at the Korea Research Institute of Ships & Ocean Engineering, said, "We also plan to establish a fuel cell power generation system using green hydrogen through the regulatory sandbox."

Generating Electricity with Waves and Growing Tomatoes with Renewable Energy

About a 20-minute drive from here, at the Seobu Agricultural Technology Center in Hallim-eup, research is underway on Power-to-Heat (P2H) technology that utilizes renewable energy output constraints. Eight institutions and companies, including Jeju Energy Corporation, are conducting demonstration projects here to supply cooling and heating to agricultural, livestock, and tourism facilities using surplus renewable energy and heat pumps.

A heat pump is a technology that supplies the heat needed for cooling and heating by condensing or evaporating refrigerant using natural heat sources such as air, geothermal, or water heat. The electricity needed for the heat pump comes from surplus renewable energy. This approach can significantly reduce greenhouse gas emissions required for building heating and cooling.

P2H system installed at the Seobu Nonghyup Technology Center in Hallim-eup, Jeju City. Jeju Provincial Government

The Seobu Agricultural Technology Center has developed a heat pump that uses groundwater located 60 meters underground as a heat source. The groundwater maintains a constant temperature of 15°C throughout the year. The heat pump's thermal storage tank stores water at 55°C in winter and 10°C in summer, supplying it as needed. The water is piped directly to the adjacent tomato cultivation facility and strawberry nursery, where it is used to heat or cool the greenhouses.

Kim Youngmin, a senior researcher at Jeju Energy Corporation, said, "Starting next year, we plan to operate in conjunction with the Plus DR system." Plus DR is a system in which consumers are compensated for increasing electricity usage at the request of the Korea Power Exchange when there is an oversupply of renewable energy.

In addition to the Seobu Agricultural Technology Center, P2H technology is also being demonstrated at Aewol Appadeul, an eco-friendly egg-producing livestock farm, and at Hanwha Resort. Hanwha Resort, which has introduced P2H technology to its hot water system, reportedly saved 6 million won in electricity costs annually.

Buying and Selling Electricity with Electric Vehicles... Hyundai Motor Group Promotes V2G in Jeju

In May last year, Jeju Province announced its "Energy Transition Vision," pledging to achieve carbon neutrality by 2035. This is 15 years ahead of the national carbon neutrality goal of 2050. To achieve this, the province is promoting the expansion of renewable energy and green hydrogen production, as well as the designation of special zones for distributed energy.

As of April this year, renewable energy sources such as solar and wind accounted for about 20% of Jeju's total power generation. The province plans to increase this share to 70% by 2035. The remaining 30% of power generation will be supplied by converting existing gas-fired power plants to hydrogen-fired power plants. On April 14 this year, Jeju achieved RE100 by supplying 100% of the region's electricity demand with renewable energy for four hours during the day.

Since the introduction of a real-time electricity market in June last year, Jeju has been able to significantly reduce output constraints caused by the expansion of renewable energy. At a press conference on September 26, Jeju Governor Oh Younghoon explained, "There were about 150 output controls per year, but since the introduction of the real-time electricity market, such incidents have almost disappeared."

(Photo from left) Shin Yonghan, Vice Chairman of the Local Era Committee, Oh Younghoon, Governor of Jeju Special Self-Governing Province, and Kim Sanghyup, Secretary-General of the Global Green Growth Organization, hold a press conference at Jeju International Convention Center on the 26th. Jeju Provincial Government

To further expand highly variable and intermittent renewable energy, Jeju is focusing on increasing flexible resources. Storing surplus renewable energy as green hydrogen or using it in heat pumps are representative examples. Governor Oh explained, "We are preparing to convert the heating and cooling systems of hotels with high electricity consumption on the island to P2H."

The Vehicle-to-Grid (V2G) service, which utilizes electric vehicle batteries as energy storage systems (ESS), is also expected to help address the intermittency of renewable energy. V2G is a service that allows electric vehicle owners to charge their vehicles at low cost when there is an excess of renewable energy, and to sell electricity back to the grid when there is a shortage, using the bidirectional charging function of the battery.

Jeju Province Governor Oh Younghoon (left in the photo) and Yang Heewon, President of Hyundai Motor Group R&D Headquarters, are taking a commemorative photo after signing a Memorandum of Understanding (MOU) on the 25th for the creation of a green hydrogen and distributed energy ecosystem. Jeju Provincial Office

In this regard, at the "2025 Green Hydrogen Global Forum" held on September 25-26, Jeju Province signed a Memorandum of Understanding (MOU) with Hyundai Motor Group to create a green hydrogen and distributed energy ecosystem. Under this agreement, the two parties plan to promote pilot services and commercialization of V2G. Governor Oh explained, "Through V2G, we have been able to secure a very important flexible resource."

Kim Sanghyup, Secretary-General of the Global Green Growth Organization (GGGI), said, "The era of electric vehicles as prosumers buying and selling electricity is just around the corner," adding, "We will soon be able to experience the convergence of energy and mobility."

As of August 2025, Jeju's renewable energy installed capacity reached a total of 1,058.13 MW, consisting of 418.97 MW of wind power, 614.46 MW of solar power, and 24.7 MW of other sources.

Jeju operates a 3.3 MW green hydrogen production base in Haengwon-ri, Gujwa-eup, Jeju City, producing 29 tons of green hydrogen last year. The province is currently developing technology for renewable energy-linked green hydrogen production with a capacity of 10.9 MW in cooperation with the Ministry of Trade, Industry and Energy. Jeju plans to produce 60,000 tons of green hydrogen annually by 2035.

Currently, there are 80 hydrogen vehicles operating in Jeju, including 22 buses, 1 garbage truck, and 57 passenger cars. By 2030, the province plans to supply 300 buses, 954 passenger cars, 50 garbage trucks, and 7 trams. Governor Oh stated, "Currently, hydrogen is being sold at 15,000 won per kilogram, but if it can be supplied at a lower price, the adoption of hydrogen vehicles will accelerate," emphasizing, "Support from the central government for hydrogen is needed."