South Korea: ''No model to recover investment in energy storage
“Under the current power market system, private companies have no model to recover their investment for installing DC energy storage,” said Chang Jae Won, vice chairman of the Korea
ET News said it marked the utility's first bulk procurement of battery storage in five years since the Korean market was put on pause by a series of fires at mostly commercial and industrial (C&I) facilities during 2017-2018.
Anchored by its draft 11th Basic Plan for Power Supply and Demand (11th BPLE), South Korea is working towards having 70% of its grid powered by carbon-free energy (including nuclear energy) by 2038.
The detailed conclusions regarding uncertainties at each level are as follows: The current state of the Korean power market would be unfavorable to ESS, as the expenses associated with construction would surpass the income generated by a larger capacity.
The Korean power market, which operates as a cost-based pool, is affected by diverse RE capacities, which have very low marginal costs. RE reduces the demand for energy sources, thus, a lower electricity price results in uncertain profits for ESSs.
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