This document discusses smart grid developments in Korea. It provides background on KPX, the organization responsible for power system operations and electricity market operations in Korea. It then discusses the motivation for smart grid in Korea, including rising energy prices, peak demand issues, and goals of energy efficiency and green growth. Key smart grid developments discussed include the national smart grid roadmap, the Jeju smart grid testbed launched in 2009, the Smart Grid Act, and Korea's involvement in ISGAN. The document reviews progress thus far and discusses current issues and next steps, such as expanding the Jeju testbed and introducing more dynamic pricing pilots.

1. Yeoungjin Chae
Korea Power Exchange

2. 2
1. Who We Are
2. Smart Grid in Korea
3. Key Developments
4. Review and Current Issues
5. Conclusion

3. Who We Are
3

4. 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

5. System operation
5

6. Market operation
• SMP Trend
6
0
20
40
60
80
100
120
140
160
0
50
100
150
200
SMP(System Marginal Price) Oil Price(Dubai)
(Won/kWh) (US$/Barrel)

7. Power Planing
7
’10 ’15 ’20 ’24’12
Capacity
Peak
demand

8. Smart Grid in Korea
8

9. 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

10. Why Smart Grid?
10
POSCO
Sin-Incheon
Seo-Incheon
1,800
1,800
Busan
1,800
3340Youngheung
Dangjin
4,000Taean
4,000
4,000
Boryeong
400 Donghae
4,000
Hadong
3,240
Samcheonpo
400 Youngnam
1,200
1,800
500Honam
529Yeosu
740 Jeju
Ulsan
1,800
500
Incheon
400Seocheon
Seocheon1,400
Youngdong325 Youngdong
Seaul388
5,900Youngkwang
2,779
3,137 Kori
Uljin5,900
900
Ilsan
Wolseong
1,012 Incheon
450
Anyang
922450
Bundang
85
72Gunsan
Yeongwol
180
480
Pyungtaek
1,030 GSBugok
526Yulchon
990
Kwangyang
1,000 Yangyang
82 Kangreung
108
Hwachun
60
Chuncheon
200
Soyangkang
45
Euiam
120
Paldnag
80 Chungpyung
400
85
Small Hydro
(Pocheon etc)
412
Incheon
90
Daechung
22
Yongdam
29
Sumjinkang
23
Chuam
600
Muju
100
700
Sanchung
90
Andong
50
Imha
600
Cheongsong
Hapchun
600
Samrangjin
여수T/P
광양C/C
영광N/P
하동T/P
삼천포T/P
고리N/P
울산T/P, C/C
월성N/P
청송P/P
울진N/P
보령T/P, C/C
태안T/P
당진T/P
평택T/P
영흥T/P
인천T/P, C/C
신(서)인천C/C
양양P/P
무주P/P
산청P/P
신덕온
신파주
양주
중부
의정부
서인천
신부평
영등포
신인천
영서
신양재
성동 미금
동서울
화성
신사흥
신성남
신영주
곤자암
신제천
아산신당진
신서산
동해
신온양
청양
군산
신김제
신광주
신화순 광양
해남
광양제철
신남원
의령
신마산
신고성
남부산
신양산
신김해
북부산
신울산
울주
신경산
신포항신영일신옥천
신계통
청원
서서울
신수원
신진천
신용인
대구
고령
서대구
북대구
선산
신강진
현대제철
신가평
서안성
신태백
신안성
제주C/S
포항제철
신은산
765KV
345KV
DC180kVSubmarineCable
765KV Substation
345KV Substation
Power Plant

11. Why Smart Grid?
11

12. 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?
12
17%
5.5%

13. Why Smart Grid?
13
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
Oil
Natural(City) Gas
Electricity
100
200
'02 '03 '04 '05 '06 '07 '08 '09
100
200
Oil 43%
Natural Gas 28%
Electricity 42%

14. Why Smart Grid?
14
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

15. Why Smart Grid?
15

16. Key Developments
16

17. Key Developments
• National Smart Grid Roadmap(‘10.1)
• Jeju Test-bed(‘09.12~)
• Smart Grid Act
• ISGAN
17

18. National Smart Grid Roadmap
visionvision
Key
Objectives
Key
Objectives
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 Grid
Smart
Power Grid
Open Power
Platform
Fault
Forecasting
Self-Heal
Smart
Power Market
Smart
Power Market
Various Tariff
Including RTP,
CPP, etc.
Smart Energy
Trade
Smart
Consumer
Smart
Consumer
Smart AMI
Auto HEMS
Smart
Transportation
Smart
Transportation
National EV
Charging
Infrastructure
V2G & ICT
Service
Smart
Renewable
Smart
Renewable
Maximum
Renewable
Expansion
Net-Zero
Home &
Building

19. Jeju test-bed
19
Sector Leads Participating Companies
Investment
Govt. Private
Smart
Place
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
Smart
Transport
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
Smart
Renewable
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

20. Jeju Test-Bed
20
Smart Place
Smart
Transport
Smart
Renewable

21. Jeju Test-Bed
21
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
Storage
System
System operation
Real time utility rate
Security control
Wholesale Electricity
market
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
Temperatur
e control
systemHome
server
Demand control
Smart electric
appliances

22. Smart Grid Act
22
▶ 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

23. ISGAN
23

24. Review and Current Issues
24

25. 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
25

26. Review on the past progress (2)
26
• Expanding Jeju Test-bed business
- Area Expansion, Test-bed Rule Making, Interoperability
Improvement, Visitor Center
• Opening More Opportunities for SG Business
- Introduction of Economic DR, Pilot Dynamic Tariff for
Residential Customer, CES Business Expansion
• Expanding SG Infrastructure Foundation
- Smart Meter/IHD, AMI Policy, EV Charging Standard,
EV Safety Improvement, Smart BEMS(K-MEG)

27. 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
27

28. Conclusion
28

29. 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.
29

30. Thank You for Your Listening
30