The government is set to establish the ‘Korean Next-Generation Power Grid (K-Grid),’ which integrates the control of renewable energy and energy storage systems (ESS). This initiative aims to address the issue where the intermittent nature of renewable energy affects the entire national power grid. The government plans to utilize artificial intelligence (AI) to control the distribution network in real-time, starting with a pilot project in Jeollanam-do and eventually expanding it nationwide.
The Ministry of Trade, Industry and Energy announced on the 31st that it will begin building the K-Grid, a system that optimizes the production, storage, and consumption of energy by real-time controlling of distributed energy like small solar and wind power in the distribution network.
Unlike the traditional ‘unidirectional’ power system centered on the transmission network, the K-Grid features a ‘bidirectional’ structure that transmits power to demand sites through the distribution network and sends any surplus power back to the transmission network. Particularly, by using AI, it can predict generation and demand and minimize the control over renewable energy output. As a result, more renewable energy can be utilized when there is capacity in the power grid.
President Lee Jae-myung remarked at the chief aides’ meeting that day, “Relevant departments should seek ways to construct Korean-style next-generation power grids by fully considering the characteristics of our current power landscape, reducing the inefficiency of long-distance transmission, and actively utilizing advanced AI technology.”
Initially, Jeollanam-do will be designated as a specialized region for distributed energy, applying regulatory exemptions to test power direct transactions and various tariff models. Custom microgrids will be established in regional industrial complexes such as steel and petrochemical sectors, and surplus power will be used in decarbonization processes like green hydrogen production. Additionally, large-scale ESS installations will address connection waitlists and foster virtual power plant (VPP) business activation. The expansion of energy vulnerable areas to RE100 villages through a resident-participatory renewable energy distribution model is also planned.
With the implementation of the K-Grid, a power system suitable for highly variable renewable energy will be equipped, while balancing power supply and demand across regions is anticipated. The Ministry plans to expand microgrid infrastructure, ensuring that distributed energy is stably ‘integrated-managed-traded,’ alongside carrying out power market system reforms.