Using the Same Battery Cells... Why Are Overseas Ones Fine?

Overseas Battery Charge Rates Below 90%
Korea Operates at 100% Maximum Capacity Overload
Modular Building Installation Environment Also Problematic

[Asia Economy Reporters Kim Hyewon and Moon Chaeseok] Battery cells from LG Chem and Samsung SDI, identified as one of the causes of the chain fire accidents in energy storage systems (ESS), are also widely installed in ESS units exported to the US and Europe. Why do fires occur predominantly in Korea despite using the same batteries in ESS overseas without issues?

According to battery experts on the 15th, the reasons for the near absence of fires at overseas sites using Korean-made batteries in ESS include differences in operational methods, the capabilities of construction companies, and installation environments. In contrast, in Korea, both ESS suppliers and consumers focus solely on economic efficiency, resulting in safety and maintenance being neglected.

First, overseas ESS operators prioritize the stability of power supply when selling ESS units. Contracts include guarantees for uniform power supply throughout the contract period. For example, if an ESS operator overseas signs a 20-year contract to supply 10MWh of power, they install an 11MWh ESS initially to prevent overload considering battery degradation, and after 10 years, they add additional batteries to compensate for degradation, ensuring a steady 10MWh supply. ESS power capacity is strictly managed accordingly.

Additionally, overseas subsidies are provided based on the contracted power amount during the contract period, differing from the Korean system where operating ESS at maximum capacity yields more benefits. This allows overseas operators to maintain battery charge rates around 90% rather than at maximum. One expert explained, "In Korea, the structure requires utilizing 100% battery charge to make money, whereas overseas, a certain profit is guaranteed at an appropriate level," adding, "Overloading to recover ESS investment early causes failures." Although the government has belatedly recommended ESS operators keep battery charge rates below 70%, less than 10% comply.

Another difference is that renowned global EPC and PCS companies such as General Electric (GE), AES DE, and Fluence handle ESS construction and operation overseas. These companies have installers and operators with high understanding of battery handling and power systems, and employ dedicated safety managers. The commissioning period after ESS installation lasts up to two months, during which various scenarios are tested to redundantly verify performance and safety.

Lastly, the buildings protecting and managing ESS components from external environments differ. Overseas, ESS units are mainly installed in containers or dedicated buildings. Laws strictly require temperature and humidity control equipment as well as fire protection facilities. In contrast, in Korea, most ESS are installed in prefabricated temporary structures, where 19 out of 28 fires occurred. Installation costs for prefabricated panels are reportedly about 30% of overseas costs.

This content was produced with the assistance of AI translation services.