Despite NIRS Fire, Government Says "Cannot Abandon ESS; Considering Incentives for Replacing Outdated Batteries"

On the 28th, fire, police, and National Forensic Service officials were moving to conduct a joint investigation at the fire site of the National Information Resources Service in Yuseong-gu, Daejeon. On the 26th, a fire broke out in a lithium-ion battery for an uninterruptible power supply (UPS) at the National Information Resources Service, which houses government computer systems, causing a large-scale paralysis of government computer services. 2025.9.28 Yonhap News Agency

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Although concerns over batteries have resurfaced following the fire at the National Information Resources Service (NIRS) in Daejeon, the government has stated that its policy to expand energy storage systems (ESS) remains unchanged. The government is also considering providing incentives for replacing ESS or uninterruptible power supply (UPS) units that are past their manufacturer warranty period.

An official from the Ministry of Climate, Energy, and Environment said on October 1, "Due to growing concerns about ESS and UPS following this fire, we are reviewing measures to support the replacement of battery systems that either do not meet the latest safety standards or have exceeded their manufacturer warranty period," adding, "If necessary, we will coordinate with relevant ministries."

The government is considering replacing outdated battery systems because widespread concerns about ESS could negatively impact the expansion of renewable energy. ESS is a key flexibility resource that helps compensate for the intermittency and variability of renewable energy and ensures the safe operation of the power grid.

As renewable energy increases, the government has established a battery energy storage system (BESS) bidding market to accelerate the adoption of ESS. In the 11th Basic Plan for Electricity Supply and Demand, the government estimated that about 23 GW of long-duration ESS would be needed by 2038. By 2029, 2.29 GW of ESS is planned to be installed.

The government also plans to raise its renewable energy targets, meaning the pace of ESS installation is expected to accelerate further. Under the 11th Basic Plan for Electricity, the target for renewable energy facility capacity in 2030 was 78 GW. However, during a recent forum to establish the 2035 Nationally Determined Contribution (NDC), the Ministry of Environment stated that facility capacity should reach at least 100 GW by 2030.

An official from the Ministry of Climate, Energy, and Environment emphasized, "If we halt ESS deployment policies while renewable energy is expanding, the domestic industrial ecosystem will collapse, and foreign-made ESS will dominate our market. We cannot abandon the domestic ESS industry."

The UPS, which has been identified as the cause of this fire, is an auxiliary power device installed to supply electricity temporarily during building power outages. While its purpose differs, its structure and operation are identical to those of ESS. The government believes that recently released ESS and UPS units are not at significant risk of fire, as they are subject to the latest safety standards.

After a series of ESS fires in the late 2010s, the government strengthened related safety standards by revising the Korea Electrical Installation Regulations in April 2023, the Electrical Installation Inspection Standards in July 2023, and the Enforcement Rules of the Electrical Safety Management Act in July 2024. For example, under the Korea Electrical Installation Regulations, if the total capacity of secondary batteries exceeds 600 kWh, they must be separated from other electrical equipment, and the facility must be fire-resistant. In the event of battery abnormalities, the system must automatically disconnect from the electrical circuit, and fire suppression systems must be installed in modules and racks to prevent the spread of fire.

The problem lies with ESS or UPS units installed before these enhanced safety standards were implemented. Existing facilities must undergo regular inspections every one or two years (for units under 1,000 kWh). A Ministry of Climate, Energy, and Environment official said, "If issues that do not meet the latest safety standards are found during regular inspections, we recommend corrective action, but it is not mandatory." This is why support measures, such as providing incentives, are needed to upgrade outdated battery systems to meet current safety standards.

Meanwhile, there is growing analysis that the recent NIRS fire was more likely caused by negligence during the relocation of the UPS rather than a battery defect. The battery industry has pointed to the possibility that the power was not completely shut off or that unskilled workers acted carelessly. A battery industry official stated, "If it turns out the fire was caused by human error, the impact on the ESS or UPS market may not be significant."

Safety standards for UPS relocation are governed by the Rules on Industrial Safety and Health Act standards and guidelines from the Korea Occupational Safety and Health Agency. According to these regulations, when performing electrical work on a de-energized circuit, the power must be shut off, and disconnectors (switches used to completely isolate electrical circuits) must be opened and checked. Any electronic devices that could pose a hazard to workers due to induced voltage or stored electrical energy must be fully discharged of residual charge before contact. In other words, when relocating a UPS, the power must first be shut off and the system discharged before any work begins.

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