Uiwang City in Gyeonggi Province has been selected as a 'Specialized Distributed Energy Area' by the Ministry of Climate, Environment and Energy.
A Specialized Distributed Energy Area refers to a region that has established a local production and consumption system, where energy is produced and consumed near demand centers instead of relying on long-distance transmission networks.
In these specialized areas, direct power transactions between distributed energy generators and electricity users are permitted as an exception to the 'prohibition of combined generation and sales' under the Electric Utility Act. Regulatory exemptions are applied, allowing for the introduction of various pricing schemes and the activation of new power industry models.
The core of the Uiwang City model selected this time is 'urban electricity sales based on energy storage systems (ESS)'.
LS Electric plans to install solar panels and ESS in Moomin Park in Uiwang to supply electricity to facilities such as electric vehicle charging stations. Through this process, a private sector-led energy system will be established that integrates the production, storage, and sale of electricity.
Additionally, an eco-friendly microgrid will be established around the Hakui-dong area to create a self-sufficient energy ecosystem where electricity is produced, stored, and consumed locally, and a business model for direct trading of stored electricity will be introduced.
Gyeonggi Province expects that this selection will not only bring tangible benefits such as power grid stability, reduced electricity costs, and energy self-sufficiency, but also contribute to fostering new energy industries, creating jobs, and revitalizing the local economy.
Cha Seongsoo, Director of the Climate, Environment and Energy Bureau of Gyeonggi Province, stated, "The Uiwang Distributed Energy Specialized Area is the first case in which a distributed energy project centered on ESS is being implemented by the private sector. We will create a model that can be expanded throughout the private ESS industry and further accelerate the Gyeonggi RE100 policy."
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