Benefits and barriers to the smart grid, the Korean example Gyu Myoung Lee ETRI (Rep. of Korea) 29 September 2010

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1 Smart ICTs and Green Growth OECD Technology Foresight Forum 2010 Benefits and barriers to the smart grid, the Korean example Gyu Myoung Lee ETRI (Rep. of Korea) 29 September 2010

2 Next convergence with Energy Smart Grid is achieved by the convergence with ICT Convergence of Power and NGN will lead to new business opportunities Main concerns of this convergence are currently security, QoS and interoperability. Electricity Energy World Best Electricity Information Technology (Power Sector + Telecommunication) Telecommunications Power failure duration per household/year : 18 minutes (UK : 68min, US : 137min) Energy Loss through Transmission and Distribution : 4% (OECD countries 6%, non-oecd countries 11%) + World Best Telecommunications Renewable Construction Automobiles Home Appliances World #1 local broadband distribution rate (OECD, 2008) World #2 ICT advancement rate (ITU, 2009) Convergence of multi-industries 2

3 Network/Service/Terminal Convergence 1. Network Convergence 100 years Power Grid + IP-based NGN* Generation / Transmission / Distribution / Customer LAN / WAN / Access network / CPN** * NGN : QoS guaranteed and highly secured IP-based Network ** CPN : Customer Premise Network 2. Service Convergence Power Service+ ICT service capability Real-time delivery, Broadband connectivity, Secured integration, bulk data management 3. Terminal Convergence Power Service through Communications Terminals Demand Response, Energy Monitoring, Notification, OA&M, etc. 3

4 Smart Grid for Green Growth Establishment of Smart Grid platform for low carbon green growth 11% 2.4 million 2.4% 0 (2006 standard) Wind, Solar power development AMI(Smart meter) Electric vehicle recharging station Grid-Connected Technology DR (Demand Response) Fuel battery, DC distribution 4

5 Smart grid technologies across the electricity sector value chain Generation Transmission Distribution Consumption Source : OECD, based on MEF,

6 National Roadmap by Korean Government Sustainable Green Growth by Smart Grids 1 st Step(~2012) Smart Grid Demonstration City 2 nd Step(~2020) Regional Smart Grids 3 rd Step(~2030) Nationwide Smart Grid Ministry of Knowledge Economy Initiates Project for Nationwide Smart Grid 27.5 trillion Korean Won in investments until 2030 Progress Jeju Field Trial : KT, GS-Caltex, Kepco, etc ( 09.11) Korean Power Market Restructuring Plan ( 10.6) Competitive Power Trading in Jeju ( 11.6) 6

7 Jeju Island Project 1,000 homes, buildings and factories in Jeju Island General configuration of Field Trial Service Energy Generation and selling Real-Time Energy Consumption Real-Time Pricing 3G SG Center Premium Demand Info. Pricing Info. Energy Metering Power Trading SG Market Real time pricing achieved through demand response 7

8 Areas for Trial There are 5 Project Sectors in Jeju Island Trial Build energy efficiency use Infrastructure Construct intelligent grid network Build Electric Vehicle Infrastructure Provide new electricity service Operation of stabilized clean energy Progress Plan in Phases Phase Basic (Establish infrastructure) Expanded (integrated operation) Main Establishment Areas Primarily on PowerGrid Place Transportation Primarily on Renewable Electricity Service Main contents Connections between power grid & consumer, power grid and electric vehicles Provide new electricity service. Connection with Power grid and new renewable generation center 8

9 Implementation model in Jeju Smart Meter Solar WCDMA/WiBro PCS Energy Storage Smart Box (G/W) Smart Appliance Smart Tag EV Charger Power Market HEMS MDMS App. Smart Meter Solar REMS DRMS Billing FTTH PCS E/S Wind CEM EMS Asset Mg. REMS(Renewable Energy Management System) DRMS(Demand Response Management System) CEM(Carbon Emission Management System) BEMS/ FEMS 스마트분전반 Building/ Factory EV charger 9

10 Barriers to the smart grid Cost Regulatory Barriers Barriers Open Standards Source: Pacific Crest Mosaic - August 2009 Concluding Remark Energy savings = efficient and comfortable life connectivity + reality + intelligence using 5Any environments Smart technologies (e.g., smart grid) to use ICTs for saving energy Realization of ubiquitous networking for energy savings NOTE: 5Any = Any Time, Any Where, Any Service, Any Network, Any Object 10

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