Dongseo Power, Jeju 140MWh-class BESS Contract Signed

Jeju Bukchon-ri BESS Bird's-eye View

Korea East-West Power announced on the 5th that it will actively promote the Jeju Central Contract Market-type Battery Energy Storage System (BESS) power generation project, the first of its kind in Korea.

The Jeju Central Contract Market BESS is a large-capacity BESS with a capacity of 140 MWh (megawatt-hours). Using BESS allows electricity to be stored when there is an oversupply and withdrawn when electricity is needed. It has been cited as an essential technology to improve efficiency, especially in the renewable energy sector where power supply varies depending on weather and time. Accordingly, the Ministry of Trade, Industry and Energy issued a bidding announcement last August and has been seeking companies to promote the project.

East-West Power formed a strategic consortium last November with Equus Energy Korea, Jeju Energy Corporation, and LG Energy Solution and was selected as the preferred negotiator for the ‘Jeju Long-duration BESS Central Contract Market Bidding Project.’ It obtained a power generation business license in April and signed a tripartite power trading contract with the Korea Power Exchange and Korea Electric Power Corporation last month, commencing full-scale facility construction.

Commercial operation is scheduled to begin in May next year. Although the original plan was for commercial operation in November next year, it was moved up considering Jeju’s power situation. It is expected to contribute to stabilizing the power grid in Jeju, where renewable energy generation is abundant, by efficiently supplying electricity according to demand.

Currently, Jeju Island urgently needs to secure energy supply stability. Since the 2010s, solar and wind power facilities have been introduced, but infrastructure to handle the electricity has not been established, causing the ‘output control’ issue that limits power generation. Since the first three output controls in wind power in 2015, the number has increased every year, reaching 181 times last year.

New changes are also expected in the electricity market. The government plans to transform the existing market into a dual system of spot and contract markets through a low-carbon central contract market. The day-ahead spot market will be advanced with real-time, reserve power, and renewable energy generation price bidding systems.

Kim Young-moon, CEO of East-West Power, said, “We will contribute to solving the output control problem from next spring through early completion,” adding, “We will do our best to work with Jeju residents in the construction and operation of the project and to revitalize the local economy.”

Meanwhile, East-West Power is leading efforts to realize Jeju’s goal of becoming the ‘first carbon-neutral city in Asia by 2035’ through the 150 MW-class Jeju Clean Energy Combined Power Project using clean energy (hydrogen co-firing and LNG) as fuel and the country’s first publicly led 104 MW-class Jeju Handong-Pyeongdae Offshore Wind Power Project.

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