[Feature] Jeollanam-do Designated as Distributed Energy Special Zone... "Jeollanam-do, the Energy Capital" Accelerates

Government Designates All 22 Cities and Counties in Jeollanam-do as Distributed Energy Special Zone
Affordable Electricity Production... Anticipating Changes in the Industrial Ecosystem
Jeollanam-do Pursues System Transformation with Microgrid Development
Renewable Energy Production to Expand to 62.5 GW by 2035
Province Also Aims to Implement 1 Trillion Won Energy Basic Income Program

Kim Youngrok, Governor of Jeollanam-do, is presiding over a policy meeting with department heads in the Seo Jae-pil Room at the provincial government office on the 11th, discussing the direction setting following the selection of a specialized area for distributed energy. Provided by Jeonnam Province

With the recent designation of the entire Jeollanam-do region as a special zone for distributed energy by the government, the construction of "Jeonnam, the Energy Capital" envisioned by the provincial government is expected to accelerate. By rapidly expanding a renewable energy-based power grid that utilizes abundant resources, Jeollanam-do aims to foster itself as a forward base for the development of future high-tech industries such as artificial intelligence. The province also plans to attract not only domestic but also global companies to establish a presence in Jeollanam-do, thereby creating a new regional industrial ecosystem unlike anything experienced before.

According to Jeollanam-do officials on November 12, the government designated the entire Jeollanam-do region as a specialized area for distributed energy (distributed energy special zone) on November 5. This is particularly significant because the designation was expanded from the previously considered candidate area (Haenam Solar City) to all 22 cities and counties in Jeollanam-do, covering 12,363 square kilometers.

Distributed energy refers to a "local production for local consumption system," in which electricity produced in a specific area is consumed within that area, rather than being transmitted over long distances via Korea Electric Power Corporation's (KEPCO) transmission network.

This designation means that the distributed energy system can now be applied anywhere in Jeollanam-do, allowing the region to enjoy multiple benefits simultaneously. In fact, it is considered an unprecedented decision, effectively designating the entire province as an "RE100 industrial complex."

The most direct benefit of this special zone designation is the increased efficiency in the way electricity is traded.

Currently, under the Electricity Business Act, the "prohibition of combined generation and sales" policy allows only KEPCO to supply electricity. However, within the special zone, private power generation companies can sell electricity directly to businesses and residents without going through KEPCO. This lays the foundation for electricity to be traded at relatively lower prices, which is a significant advantage for companies. This is why companies developing cutting-edge future energy technologies, including artificial intelligence, which require large amounts of electricity, are turning their attention to Jeollanam-do.

Jeollanam-do has already begun preparing plans to build a Micro Grid (MG) distributed power network.

The microgrid system, which bundles power generation facilities such as solar power, energy storage systems (ESS), and electricity consumers like factories within a certain area to produce, consume, and store electricity independently like a small power grid, is considered the optimal system for supplying "half-price electricity" in the future.

Jeollanam-do plans to focus on developing customized city and county-specific microgrid models for industrial complexes, agricultural and industrial complexes, campuses, airports, smart farms, and more. The province aims to establish microgrids in all 22 cities and counties by 2030.

To achieve this, the province is also accelerating efforts to expand renewable energy power generation capacity, including solar and wind power.

As of this year, Jeollanam-do leads the nation with 6.6 GW of installed renewable energy capacity. The province plans to increase this to 29 GW by 2030 and 62.5 GW by 2035. A significant portion of this electricity will be allocated to the distributed energy special zone. In addition, the province has set a goal to implement an energy basic income program worth 1 trillion won annually.

Aerial View of Haenam Solar City Industrial Complex / Provided by Jeollanam-do

Recently, OpenAI and SK Group agreed to jointly establish a global AI data center in the southwestern region of Jeollanam-do. The Samsung SDS consortium also selected Jeollanam-do as a candidate site for the National AI Computing Center. Moving forward, Jeollanam-do plans to maximize industrial efficiency, including reducing electricity costs, to encourage even more companies to take root in the province.

The province also aims to create high-quality jobs by fostering the energy industry, and to address various pressing issues such as regional population decline at the same time.

An official from Jeollanam-do stated, "The designation of the entire province as a distributed energy special zone is truly a groundbreaking turning point for the region," adding, "With all the infrastructure for the power industry based on renewable energy already in place, this special zone designation will mark the starting point for the creation of new industrial sectors in Jeollanam-do."