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1 / 23 Korean Electricity Market #8. Reference - Ulleung Island Microgrid LG CNS is implementing one of the largest 100% green microgrid with KEPCO Wind Farm Geothermal Plant Solar Plant Small Hydro Diesel Plant #1 Diesel Plant #2 Microgrid Operation Center ESS Fuel Cell & LNG Storage : Legacy : Planned Current - Mostly Diesel Phase 1 (~2017) - 30% from Renewables Phase 2 (~2021) - Zero Diesel Microgrid Operation System ESS: 20MWh Renewables: Wind 8MW, Solar 1MW Two Diesel Plants: 10.5MW, 8MW One Small Hydro: 0.7MW ESS: 36.5MWh Renewables: Fuel Cell 23MW, Geothermal 4MW Smart Meters, EVs [Ulleung Island] Residents: 10,000+ Max. Peak: 11MW EVs (Car Sharing) Electric Fishing Boat

Reference - Ulleung Island Microgrid

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Page 1: Reference - Ulleung Island Microgrid

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Korean Electricity Market#8. Reference - Ulleung Island Microgrid

LG CNS is implementing one of the largest 100% green microgrid with KEPCO

Wind Farm

GeothermalPlant

Solar Plant

Small Hydro

Diesel Plant #1

DieselPlant #2

MicrogridOperation Center

ESS

Fuel Cell &LNG Storage

: Legacy : Planned

Current- Mostly Diesel

Phase 1 (~2017)- 30% from Renewables

Phase 2 (~2021)- Zero Diesel

• Microgrid Operation System

• ESS: 20MWh

• Renewables: Wind 8MW, Solar 1MW

• Two Diesel Plants: 10.5MW, 8MW

• One Small Hydro: 0.7MW

• ESS: 36.5MWh

• Renewables: Fuel Cell 23MW, Geothermal 4MW

• Smart Meters, EVs

[Ulleung Island]Residents: 10,000+Max. Peak: 11MW

EVs (Car Sharing)

ElectricFishing Boat

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Korean Electricity Market#8. Reference - Ulleung Island Microgrid

Decreasing social costs for the energy-alienated area paid by KEPCO

SPC(Renewable electric power produc-

tion & Operation)

KEPCO(Electric Power Purchase &

Selling)

Electricity De-velopment

Fund

Customer(Home, Building

etc.)

SellingElectricity

Payment(Fixed Rate)

SellingElectricity

Electricity Bill - €0.1~0.2/kWh

Payment for Losses

Request for Losses

LG CNS(Integrated Implementation & Main-

tenance Business)

Payment for the System &

Service

Integrated Imple-mentation & Main-

tenance

KOGAS(LNG Supplier)

LNG Supply

Payment

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Korean Electricity Market#8. Reference - Ulleung Island Microgrid

Both KEPCO and Ulleung-Island will receive benefits from Microgrid

• KEPCO 29% of generation cost

recovery

€15.8M of annual loss (as of 2013)

• Ulleung Island Upsurge of CO2 emission

from diesel plants and fossil-fuel vehicles

Delay of green island development

Expected BenefitsCurrent Issues

Microgrid Project with Korean Gov-ernment Support

(such as REC bonus)

• KEPCO Increase in generation cost

recovery rate and decrease in annual loss

Plants and distribution deferral by 20% of peak reduction

• Ulleung Island CO2 reduction: 4,771ton

: by renewables, EVs, etc

Boost of green tourism: Job creation, effect on production inducement