"Renewable Energy to Be Operated Flexibly"... Korea Power Exchange Introduces Semi-Centralized Dispatch System

Operation during low-demand periods from March to May and September to November
Incentives provided for renewable energy following dispatch instructions
Online remote control capability required for participation

Solar power generation system installed at LS Cable Donghae plant.

The Korea Power Exchange announced on January 22 that it will fully implement the "Semi-Centralized Dispatch Operation System for Renewable Energy" starting in the spring of 2026 to ensure the stable operation of the mainland power grid.

The Semi-Centralized Dispatch Operation System for Renewable Energy is a system designed to maintain grid stability during the low-demand spring and autumn seasons. Under this system, non-centrally dispatched generators-which previously did not receive dispatch instructions from the Korea Power Exchange-will be utilized for dispatch operations during the low-demand periods. Incentives will be provided for the controllable capacity supplied by these generators.

This system was first introduced as a pilot in October 2024, and starting in March this year, its scope will be expanded to include renewable energy generators such as solar and wind power.

Specifically, eligible participants are limited to generators connected to regional substations managed by the grid, excluding those in Jeju and the East Coast. Generators with a facility capacity exceeding 20 megawatts (MW) can apply individually, while those with a capacity of 20 MW or less can participate as aggregated power resources through small-scale power brokerage operators (VPPs).

A grid management substation refers to a substation where the available connection capacity is saturated, and output control of the connected generation facilities can occur at any time.

The system will operate during the spring and autumn months, specifically from March to May and from September to November, and will be in effect daily from 10 a.m. to 5 p.m., regardless of weekdays or holidays.

Businesses wishing to participate must be equipped with online remote control capabilities that can respond to real-time dispatch instructions from the Korea Power Exchange within one minute. They are also required to participate in the renewable energy generation forecasting system.

Kim Honggeun, Acting President of the Korea Power Exchange, stated, "It is significant that we have established a system to utilize renewable energy and aggregated power resources as dispatchable resources on the mainland for the first time. As renewable energy, which will be the main resource of the future power grid, transforms from an inflexible resource to a flexible dispatchable resource, we expect it will contribute to achieving a stable energy transition."