Yeoungjin ChaeKorea Power Exchange

2

1. Who We Are

2. Smart Grid in Korea

3. Key Developments

4. Review and Current Issues

5. Conclusion

Who We Are

3

KPX introduction

• Establishment : APR, 2001- With the commencement of Electricity Industry Restructuring(2000)

• Non-profit & Independent

• Mission- Power System Operation- Electricity Market Operation- Long-term Power Planning

4

System operation

5

Market operation

• SMP Trend

6

0

20

40

60

80

100

120

140

160

0

50

100

150

200SMP(System Marginal Price) Oil Price(Dubai)

(Won/kWh) (US$/Barrel)

Power Planing

7

’10 ’15 ’20 ’24’12

Capacity

Peakdemand

Smart Grid in Korea

8

Concept

• Not just limited to build intelligent grid,

• But also expands into new value creation from the national business perspective.

9

Technology

- Optimizing energy efficiency by upgrading power grid with ICT

Business

- Providing opportunities for fusion and synergies among industries

- Complete green growth platform to facilitate new value creation

Why Smart Grid?

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POSCO

Sin-Incheon

Seo-Incheon

1,800

1,800

Busan

1,800

3340Youngheung

Dangjin

4,000Taean4,000

4,000Boryeong

400 Donghae

4,000

Hadong

3,240

Samcheonpo

400 Youngnam1,200

1,800

500Honam

529Yeosu

740 Jeju

Ulsan

1,800

500

Incheon

400Seocheon

Seocheon1,400

Youngdong325 YoungdongSeaul388

5,900Youngkwang

2,779

3,137 Kori

Uljin5,900

900

Ilsan

Wolseong

1,012 Incheon

450Anyang922450 Bundang

85

72Gunsan

Yeongwol

180

480Pyungtaek

1,030 GSBugok

526Yulchon990

Kwangyang

1,000 Yangyang

82 Kangreung108

Hwachun60

Chuncheon

200Soyangkang

45Euiam120

Paldnag

80 Chungpyung400 85

Small Hydro(Pocheon etc)

412Incheon

90Daechung

22Yongdam

29Sumjinkang

23Chuam

600Muju

100

700Sanchung

90Andong

50Imha

600Cheongsong

Hapchun

600Samrangjin

여수T/P

광양C/C

영광N/P

하동T/P삼천포T/P

고리N/P

울산T/P, C/C

월성N/P

청송P/P

울진N/P

보령T/P, C/C

태안T/P

당진T/P

평택T/P영흥T/P

인천T/P, C/C

신(서)인천C/C

양양P/P

무주P/P

산청P/P

신덕온

신파주 양주

중부의정부

서인천신부평

영등포

신인천영서

신양재성동 미금

동서울

화성신사흥

신성남

신영주

곤자암

신제천

아산신당진

신서산

동해

신온양

청양

군산

신김제

신광주

신화순 광양

해남

광양제철

신남원

의령

신마산

신고성

남부산

신양산신김해

북부산

신울산

울주신경산

신포항신영일신옥천

신계통청원

서서울

신수원

신진천

신용인

대구고령

서대구

북대구선산

신강진

현대제철

신가평

서안성

신태백

신안성

제주C/S

포항제철

신은산

765KV345KVDC 180 kV SubmarineCable765KV Substation345KV SubstationPower Plant

Why Smart Grid?

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40,000

45,000

50,000

55,000

60,000

65,000

70,000

75,000

80,000

'01 '02 '03 '04 '05 '06 '07 '08 '09 '10

Available capacity

Peak demand

(MW)

Why Smart Grid?

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17%

5.5%

Why Smart Grid?

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Energy Price Trend Consumption Trend

Oil 123%Natural Gas 46%Electricity 13%

• Energy Prices and Consumption Trend(‘02-’09)

'02 '03 '04 '05 '06 '07 '08 '09

OilNatural(City) GasElectricity

100

200

'02 '03 '04 '05 '06 '07 '08 '09

100

200

Oil 43%Natural Gas 28%Electricity 42%

Why Smart Grid?

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Electric heater Electric cook-top Electric fan heater

1997 2002 2004 2006 2009

Electric mat 0.22 0.30 0.31 0.40 0.55

Electric cook-top - - - - 0.10

• Penetration rate of electrical appliances

Why Smart Grid?

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Key Developments

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Key Developments

• National Smart Grid Roadmap(‘10.1)

• Jeju Test-bed(‘09.12~)

• Smart Grid Act

• ISGAN

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National Smart Grid Roadmap

visionvision

KeyObjectives

KeyObjectives

5 Domains5 Domains

Low Carbon, Green Growth Economy Based On Smart Grid

SG Pilot CitySG Pilot City

Completion of Consumer Smart Grid

Completion of Consumer Smart Grid

Completion of National Smart Grid

Completion of National Smart Grid

Phase I(~2012)

Phase II(~2020)

Phase III(~2030)

Smart

Power GridSmart

Power Grid

Open PowerPlatform

Fault ForecastingSelf-Heal

Smart

Power MarketSmart

Power Market

Various TariffIncluding RTP,CPP, etc.

Smart EnergyTrade

Smart

ConsumerSmart

Consumer

Smart AMI

Auto HEMS

SmartTransportation

SmartTransportation

National EVChargingInfrastructure

V2G & ICTService

Smart

RenewableSmart

Renewable

MaximumRenewableExpansion

Net-ZeroHome &Building

Jeju test-bed

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Sector Leads Participating CompaniesInvestment

Govt. Private

SmartPlace

Samsung electronics, Korea Cable TV, Jeju broadcast etc (29) 5 25

Samsung SDS, Samsung Trade, Rootech etc (14) 4.7 30

LG U+, GS pure cell, GS construction etc (15) 4.7 17.5

Samsung electronics, Taihan Electric, Nuri Telecom etc (38) - 10

SmartTransport

Samsung SDI, Lotte data communication, P&E Solution etc (22) 4.5 14

SK Network, Iljin Electrics, Ientech etc (13) 4.5 13

LG CNS, ABB Korea, NexCon Take etc (7) 4 8

SmartRenewable

KOSPO, Hyosung, LSIS etc (16) 4.7 15.3

Maxcom, Icellkorea etc (6) 4.7 7

LG Chem, Woojin Industrial System etc(6) - 9

(Million dollar)

※ ( ) : No. of participating companies

Jeju Test-Bed

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Smart Place

SmartTransportSmartRenewable

Jeju Test-Bed

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Power GridPower Grid

Smart PlaceSmart Place Smart TransportSmart Transport Smart RenewableSmart Renewable

Smart Transmission

Digital substation

Information management

Market operation

Real time data connection

Recharging Infra Distributed Energy Resources

StorageSystem

System operation

Real time utility rate

Security control

Wholesale Electricitymarket

Incumbent System (KEPCO)

Facility data

Demand bidding

Settlement data

Smart power distribution

Real time data connection

Active Telemetrics

Additional Connections

Weather/Traffic Information

CO2/ Regional Information

Total Operation Center

Demand Side Bidding

Demand Side Bidding

Demand response bidding

Display

Temperature control systemHome

server

Demand control

Smart electric appliances

Smart Grid Act

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▶ Background

▶ Key Articles- National Implementation Plan- New SG Service Provider- Investment Support- Expansion of Smart Grid City- R&D, International Cooperation- Information, Cyber Security - Interoperability- Standard, Verification

ISGAN

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Review and Current Issues

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Review on the past progress (1)

• Public Awareness on SG- SG Roadmap & SG Act

• Private Investment from Various Indutries- Jeju Test-bed & Korea Smart Grid Week

• Global Leadership- ISGAN, MEF Roadmap, Korea-Illinois SG Initiative

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Review on the past progress (2)

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• Expanding Jeju Test-bed business- Area Expansion, Test-bed Rule Making, InteroperabilityImprovement, Visitor Center

• Opening More Opportunities for SG Business- Introduction of Economic DR, Pilot Dynamic Tariff forResidential Customer, CES Business Expansion

• Expanding SG Infrastructure Foundation - Smart Meter/IHD, AMI Policy, EV Charging Standard,EV Safety Improvement, Smart BEMS(K-MEG)

Current Status

• Phase II of Jeju Test-bed started in June

• New test area includes other parts of Jeju

• More dynamic pilot tariff will be introduced

• Pilot DR programs will begin next year

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Conclusion

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Implication

• Price-responsive demand is the first and most important step of the successful smart grid.

• Smart Grid should follow the customers, not vice versa.

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Thank You for Your Listening

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