Jeonnam Province Moves to Secure 1.5 Trillion Won ESS Capacity in Second Bidding Round

Consulting on Site Identification and Local Acceptance for Companies

ESS Central Contract Market Business Briefing Site. Provided by Jeonnam Province

Jeonnam Province announced that it is strengthening support by operating on-site support teams together with cities and counties to secure energy storage system (ESS) capacity in the second competitive bidding for the ESS Central Contract Market conducted by Korea Power Exchange.

The second bidding volume is 500MW for the mainland and 40MW for Jeju, the same as the first round. In the first bidding, Jeonnam Province secured the entire 523MW, exceeding the bidding volume, across seven substations in six cities and counties.

The government’s ESS bidding project aims to alleviate power grid shortages and renewable energy output curtailment. It targets 129 grid management substations in five regions: Jeonnam, Gwangju, Jeonbuk, Gangwon, and Gyeongbuk, with Jeonnam having the largest number at 46 substations.

ESS is a facility that stores surplus electricity generated from renewable energy and discharges it during periods of high power demand, earning it the nickname "electricity reservoir."

The 523MW secured by Jeonnam Province in the first bidding represents facilities worth 1.5 trillion won, expected to resolve output curtailment for 872MW of solar power plants and create approximately 9,300 new jobs in battery manufacturing and construction.

For the second bidding, Jeonnam Province will continue to operate on-site support teams with cities and counties, providing consulting services to participating companies for site identification and securing local acceptance, as well as inspecting fire and facility safety.

According to the 11th Basic Plan for Long-term Electricity Supply and Demand, the government plans to secure an additional 500MW of mainland ESS in 2026 and 600MW in 2027. Jeonnam Province intends to maintain a continuous support system for site identification and local acceptance to ease renewable energy output curtailment and ensure grid stability, while also actively fostering the ESS industry.

For the second bidding, Korea Power Exchange will accept business plans until the 12th. Preferred bidders will be announced in February. The final selected bidders must obtain power generation business permits within six months and complete ESS power plant construction by December 2027.

Yoo Hyunho, Director of the Energy Industry Bureau of Jeonnam Province, stated, "We welcome the government's continued ESS deployment," adding, "With ESS adoption, we will accelerate the expansion of renewable energy, the realization of basic energy income, and the attraction of high-tech companies."