[K-Industry: Future Architects] "The Power Supercycle Will Last Until 2035 Without Exception... Reaping the Rewards of a Decade-Long Investment"

A "supercycle" has arrived in the power industry. Three waves are converging simultaneously: the cyclical need to replace equipment every 20 years, an increase in power demand driven by the rise of electric vehicles, and the explosive growth of data centers. At the center of this trend is Chaeyoon Bae, who has quietly led research into advanced technologies such as direct current (DC) for the past decade as the head of the Basic Technology Research Group at LS Electric.

In an interview with The Asia Business Daily conducted on April 13 at the LS Electric Global R&D Campus in Anyang, Gyeonggi Province, Bae stated, "From the perspective of data centers, we (LS Electric) are essentially the only company with a full lineup of DC solutions from ultra-high-voltage transmission to distribution, power conversion, and internal low-voltage DC." He added, "Our comprehensive capabilities in both power conversion and distribution give us a definitive competitive advantage in the current data center market."

Paek Chaeyoon, Head of Basic Technology Research Group at LS Electric, is being interviewed on the 13th at the LS Electric Global R&D Campus in Anyang, Gyeonggi Province. Photo by Kang Jinhyung

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The power industry's cycle typically repeats every 20 years, which is the standard lifespan for equipment. However, this time, the unusual "supercycle" is being formed by the simultaneous overlap of three types of demand. As a result, global big tech companies building data centers are increasingly turning to power companies. In the market, there is an expectation that, following LS Electric’s recent securing of a 170 billion won project to supply power facilities to a North American data center, the company is likely to win similar contracts repeatedly in the future.

Bae explained, "Orders for ultra-high-voltage transformers are already booked up until 2030, and we expect this situation to continue at least until 2035." Customers are now demanding faster, larger-scale, and more customized supply than ever before. "The quality standards and requirements have become much higher and more demanding," Bae noted, "and there is a pronounced preference for collaborating with companies that have mid- to long-term visions in response to industrial growth."

Paik Chaeyoon, Head of Basic Technology Research Group at LS Electric, is being interviewed on the 13th at the LS Electric Global R&D Campus in Anyang, Gyeonggi Province. Photo by Kang Jinhyung

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However, there are concerns that the rapidly increasing power demand cannot be met using conventional methods. With power supply contracts already saturated, simply expanding facilities is not a sufficient response. "Ultimately, in order to compensate for scarce resources, the share of renewable energy will inevitably have to increase," Bae said. "Given the high volatility of sources like solar and wind power, the expansion of energy storage systems (ESS) will inevitably follow."

He also predicted that the power supply structure will shift from a centralized to a distributed model. "Supplying power centrally and uniformly can be inefficient," he explained. "Microgrids, in which power is generated and consumed at the local level, are expected to become increasingly prevalent."

Bae emphasized the need to advance energy management methods. "Currently, energy optimization is centered on individual units, but moving forward, an integrated management system will be needed-from the national level down to smaller units," he stated. "Energy Management Systems (EMS) will be increasingly applied in this direction." He also predicted that DC-based systems would be more widely adopted across the entire power infrastructure.

In summary, the ultimate form of power supply he envisions is an "integrated solution" using the turnkey (design and construction as a package) approach. "After receiving high-voltage power, it will be converted to DC and supplied directly to data centers, with integrated provision of power conversion devices and protective equipment," Bae said. "Customers are likely to prefer this type of solution as well." This transformation of power infrastructure goes beyond simple facility competition and will become a core infrastructure directly linked to future competitiveness in the artificial intelligence (AI) industry.

Bae Chaeyun, Head of Basic Technology Research Group at LS Electric, is being interviewed on the 13th at the LS Electric Global R&D Campus in Anyang, Gyeonggi Province. Photo by Kang Jinhyung

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LS Electric's competitive edge comes from its long-term investment in advanced technologies. Beginning with the establishment of the Power Technology Research Team in 2015, the company has conducted advanced research for the past decade, developing core technologies such as semiconductor circuit breakers, semiconductor transformers, and DC-DC converters to the productization stage. Notably, earlier this year, LS Electric began operating a "DC Factory" in Cheonan, South Chungcheong Province, which demonstrates a power system based on DC, thereby securing its proof-of-concept capabilities.

The research group is currently accelerating the development of next-generation power technologies including superconductors, small modular reactors (SMRs), and hydrogen power generation. If superconducting cables are commercialized, it will be possible to transmit large amounts of power directly without substations, potentially transforming the entire structure of the power grid. Recently, a range of power generation methods-including thermal, hydrogen, and SMRs-are being discussed as part of efforts to expand power supply.

Bae stated, "If superconducting technology becomes practical, the entire structure of the existing power grid could change," adding, "It is also considered a promising area for the long-term development of DC distribution networks." In addition to superconductors, the research group has been working on HVDC (high-voltage direct current) technology and software-based power control, which have contributed to the current DC Factory setup.

He predicts that competition among power suppliers will become even fiercer in the future. As companies' technical standards rise, the reliability of power supply will become increasingly important. "Data centers demand far higher reliability than factories or homes," Bae explained. "Outages of even a few seconds per year are unacceptable." He continued, "LS Electric is accumulating demonstration data through the Cheonan DC Factory and will strive to further enhance reliability in the future."

▲ Joined LS Electric in 2005

▲ Former Head of Beijing Research Center, Power Technology Research Team Leader, and Advanced Technology Research Group Leader

▲ Led the development of ultra-high-voltage circuit breakers, arc analysis technology, and superconducting fault current limiters

▲ Currently Head of the Basic Technology Research Group; Director at the Korean Institute of Electrical Engineers and the Korean Society of Superconductivity and Cryogenics; Korea representative for the CIGRE A3 sector

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