Ministry of Industry to Reduce Electricity Demand This Summer to Secure Power Reserve Resources

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kwon Haeyoung] The Ministry of Trade, Industry and Energy is pushing to secure power reserve resources this summer by reducing electricity demand.

On the 13th, Moon Seung-wook, Minister of Industry, held a non-face-to-face meeting with specialized power demand resource management operators and participating companies, stating, "Since the demand response (DR) market was established, it has played a role in stabilizing power supply and demand as a useful resource during winter and summer power peak periods," and urged, "Please pay special attention to this summer's power supply and demand situation and actively cooperate in power demand management."

The DR system is a scheme where companies receive compensation if they achieve the agreed reduction amount when requested to reduce demand during periods of high electricity demand. Since the Korea Power Exchange opened the DR market in November 2014, currently 30 demand management operators have registered 5,154 companies (totaling 4.65GW) participating, playing a role in lowering peak demand by a certain margin during power peak periods. Whether to operate power plants to meet electricity demand, reduce electricity demand, and if reduced, how much compensation to pay are traded and settled through the DR market.

A Korea Power Exchange official said, "Power supply this summer is expected to be similar to last year, but due to economic recovery increasing industrial production and temporary increases in electricity demand caused by weather effects, the possibility of utilizing the DR market has increased."

An official from the Ministry of Trade, Industry and Energy said, "Using this system can reduce the construction of new power plants to respond to peak electricity demand that occurs only for a few hours a year," adding, "With the development of digital technology, it has become possible to measure and control electricity usage in real time, and advanced countries such as the United States are actively utilizing this system."

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