Naju City Establishes Demonstration Complex for Commercialization of DC Power Grid Platform

The world’s first ‘Direct Current (DC) Power Grid Platform Commercialization’ demonstration complex will be established in Naju City, Jeollanam-do.

Naju City (Mayor Yoon Byung-tae) announced on the 2nd that the ‘Jeonnam Energy New Industry Global Innovation Zone’ was finally designated in last year’s ‘Global Innovation Zone’ designation and contest hosted by the Ministry of SMEs and Startups.

The Jeonnam Energy New Industry Global Innovation Zone is being promoted with a focus on the ‘Future DC-based Power Grid Platform Commercialization’ project.

The DC-based power grid is regarded as a key industry that will resolve issues such as saturation of the existing Alternating Current (AC) power grid, grid connection delays, and output restrictions caused by the rapid increase of renewable energy facilities, as well as the sharp increase in power consumption due to the spread of electric vehicles and rising urban power demand.

Conceptual Diagram of the Global Innovation Special Zone Operation Model.
Photo by Naju City

The Global Innovation Zone is an area that further advances and expands the existing Regulatory Free Zone, applying systems that meet international standards for regulation, demonstration, certification, permits, and insurance to develop new products in future technology fields and to expand overseas markets.

In particular, it introduces a new regulatory innovation system that shifts the regulatory exemption method from the existing positive list to a negative list. According to the principle of prior permission and post-regulation, all demonstrations within the zone are allowed unless prohibited by laws or policies.

In the zone contest, 18 project tasks were designated and applied from 14 cities and provinces.

Among them, 8 projects including Jeonnam were selected through the first written evaluation, and on December 27 last year, Jeonnam (Energy New Industry), Busan (Marine Mobility), Chungbuk (Advanced Regenerative Bio), and Gangwon (Medical Data) were finally designated as innovation zones in the second presentation evaluation.

The Jeonnam Energy New Industry Global Innovation Zone will invest a total project cost of 100.2 billion KRW (national funds 25 billion, local funds 41.5 billion, private 33.7 billion).

With the goal of becoming a global hub for future DC-based power grid commercialization, the project will be promoted in stages, divided into core and linked districts.

The first phase, from this year to 2027, will establish a commercial testbed for DC-based power grid demonstration in the Naju Innovation Industrial Complex, where energy industry, academia, and research are concentrated.

It aims to create a virtuous cycle system for demonstration, testing, certification, and research of the DC industry, one of the next-generation power systems, establish domestic and international technical standards, support domestic equipment’s entry into overseas markets, and secure a leading position in the global market.

The second phase, from 2028 to 2029, plans to promote the commercialization of the world’s largest DC power grid by applying demonstration results linked to a large-scale renewable energy complex in the southwestern region.

The city expects that through the designation of the Jeonnam Global Innovation Zone, resident companies in the Energy Valley will actively develop technologies and products in future power technology fields, achieve research outcomes, and expand overseas market entry of equipment.

The Naju Innovation Industrial Complex, designated as a Global Innovation Zone with innovative regulatory exemptions, is expected to soar as a Korean version of Silicon Valley, creating cutting-edge innovative technologies and producing world-class unicorn companies.

Mayor Yoon Byung-tae said, “The designation of the Global Innovation Zone has elevated Naju’s status as an energy capital leading the global carbon neutrality and energy transition era,” adding, “We will promote the growth of Energy Valley companies and their overseas market expansion and create quality jobs through the establishment of a virtuous cycle system for research and development, demonstration, standards, and certification using global-level systems and infrastructure.”

Naju = Asia Economy Honam Reporting Headquarters Reporter Kim Yuk-bong baekok@asiae.co.kr

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