Paju and Uiwang Promote 'Distributed Energy Specialized Areas'... Self Energy Production and Consumption

Gyeonggi Province has officially applied for Paju City and Uiwang City as candidates for the 'Distributed Energy Specialized Area' currently being solicited by the Ministry of Trade, Industry and Energy.

A distributed energy specialized area refers to a region where electricity generated by solar power plants and other sources within the area is consumed locally without going through Korea Electric Power Corporation (KEPCO).

According to the 'Special Act on the Activation of Distributed Energy,' if designated as a special zone, distributed energy operators in the area can simultaneously generate and sell electricity, and partial tariff deregulation will be allowed, enabling companies and citizens as electricity consumers to choose advantageous electricity rates.

Paju City is promoting the establishment of Korea's first 'Korean-style CCA (Community Choice Aggregation)' power retail business model. The Paju Urban Tourism Corporation has been designated as the main entity for the power retail business and will create a public renewable energy production base with a total capacity of 17 megawatts. Customized electricity products such as the 'Affordable Electricity Rate Plan' and 'RE100 Rate Plan' will be offered to companies and citizens. In particular, stable renewable energy will be supplied to areas with concentrated electricity consumption such as the Paju LCD Industrial Complex and the Publishing Industrial Complex, supporting small and medium-sized enterprises in responding to ESG (Environmental, Social, Governance) requirements.

Regions such as Tottori Prefecture in Japan and California State in the United States are already operating resident-centered power systems by promoting municipal power retail businesses. The Paju model has a similar structure and is expected to be the first case in Korea to transform the power industry into a consumer-centered system.

Uiwang City is establishing a privately-led eco-friendly microgrid (where electricity users also act as producers) in Hakui-dong and is demonstrating an 'urban-type stored electricity sales business.' Provided by Gyeonggi Province

Uiwang City is demonstrating a private-led eco-friendly microgrid (where electricity users also act as producers) in Hakui-dong, along with a 'urban-type stored electricity sales business.' This method stores surplus electricity generated during nighttime or excess renewable energy in energy storage systems (ESS) and sells it during peak demand hours.

This model aims to resolve the intermittency problem of renewable energy and develop a new revenue model that complements the existing power market structure. Additionally, it can alleviate the burden on the saturated northern Gyeonggi (Yeoncheon) power grid and establish a foundation for additional distributed energy inflow.

Gyeonggi Province plans to develop the public-led model of Paju City and the private-led model of Uiwang City into representative models for nationwide expansion after parallel demonstrations if designated as special zones.

The public inspection of the specialized area plan will be conducted for one month from April 11 to May 11.

Kim Yeon-ji, Director of the Energy Industry Division of Gyeonggi Province, said, "Gyeonggi Province is a region with high energy demand and has been doing its best to balance the national energy supply and demand through the 'Gyeonggi RE100' policy. The designation of Gyeonggi Province as a special zone will reduce the burden on Korea's power grid and serve as a turning point for expanding the regional economy and transforming the power market structure."

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