Ⅰ

Smart Grid in Korea

ⅡJeju Smart Grid Testbed

ⅢⅣKorea s’ EV Project

Jeju EV Project

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What is Smart Grid?
Power plant
FactoryHomeBuildingCommunications(Smart)Real Time
Communication

Given power network(Grid)
Supply side/one-way
Closed platform
Uniform services

Smart Grid
Demand side/two-way
Open platform
Various services

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1) To respond to climate change Need to build green-growth infrastructure for reducing greenhouse gasemissions
 By building smart grid, establish the foundation for expanding thesupply of renewable energy and electric cars

2) To increase energy efficiency
 To ensure energy self-sufficiency and transition to low-emmission society Smart grid as a powerful tools for energy efficiency through demand shift
and energy saving
DC(Edison)
At the end of the 19th century

AC(Tesia)
In the 20th century

Present
In the 21th century

Direct Current

Alternating Current

AC+DC3) To create new growth engines
 Smart grid market drives countries to ‘green competition’ To lead the Smart grid global market and turn into a major export industry
as a new growth engine

- .

5/43Needs
Continuous increase of Energy Consumption
Need to improve the effectiveness of energy consumption to respond to Climate Change

Essential Infrastructure for using renewable energy and distribution of EV

Consumer-Centered Supplyof Various Electiricity

PowerConsumption

01224 Time“Participation of consumers change
the pattern of power consumption
Development of new generation“A Green Car is a moving power plant”

SmartGrid

Effective Use of Generation
System by Smart Grid

Premium

FactoryMedium
Low

home
Heating, air-conditioning

DC

Home Appliance/Business Machine

EV Charger

Green Car

“Give a choice to consumers”

Smart Gridcharge

Charging Station discharge

EV

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“Designated as MEF the leading country out of
7 technologies to change the world in G8 Summit” (9/7/2009., Italy)- Smart Grid(Korea, Italy)- Energy efficiency(USA)- Solar energy(Germany)- Carbon capture and storage(UK, Australia)- Bioenergy(Brazil, Italy)- High-tech automobiles (Canada)- Highly efficient coal technology withlow carbon emission(Japan, India)

Response to Climate Change and Green Growth areglobal trends.

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National Road Map established (Jan. 2010) ; ’Smart Grid Promotion Act’ enforced (Nov.2011)
National Smart Grid Road Map (Smart Grid 2030) launched (27.5 trillion won to be invested by 2030)‘Smart Grid Promotion Act’ enacted with aim to build world’s first nationwide smart grid

Advanced technologies through pioneering R&D(Power IT) Top 10 technologies being developed through 253.2-billion-won investment (2005-2013)(Electric Vehicle Charger) Developed and standardized * Slow charger: June 2011, Fast charger: September 2011
(Energy Storage Device) World-class electric vehicle battery manufacturing technology developed

Jeju Test Bed (Dec. 2009~May 2013), Korea Micro Energy Grid (K-MEG, July 2011~June 2014) topilot technologies and develop business models
168 organizations, including power IT companies, carmakers, electronics makers, invested 249.5 billion won (publicsector: 76.6 billion won, private sector: 172.9 billion won)
Developed energy optimization system by applying smart grid concepts to buildings (80 companies took part)

Facilitation efforts, including structure organization , standardized framework and security, active
international cooperation
Established Korea Smart Grid Association as the pilot of the industry (May 2009)
Former Power IT Institute upgraded to Korea Smart Grid Institute (Aug. 2009)
Invited ISGAN Secretariat (June 2011); signed cooperation agreements with U.S. and other countries

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Smart Grid-based Low Carbon Green Growth9/43

Energy Storage Commercialization Strategy (~2011)

2020

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Smart Grid Hub CityAMIESS/EMS
EV Charging Infra
Renewable
Energy+ESS

Smart demand Mgt.
Energy storage
service
Charging service
Dispersed resources
integration

Diversified pricings: Time-of-use, realtime pricing, etc.
Open market to business operators
Demand management
Mutual growth: promote SMEs; win-win
between big and small businesses

Jeju Test Bed / K-MEG
National Road Map / Smart Grid Act
Power IT Technologies

Continue virtuous cycle
between R&D, testing andcommercialization
Establish R&D systems andplans

Standardization/
Cyber security
Consumerparticipation
Industry
promotion

International
cooperation
Workforcetraining

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2030
Completion ofNationwide SG

2020

Completion of intelligent
consumerStart of wide area SG business
Designation of SG Hub-city

2010
2009

Completion of 1st phase of Jeju SG
Testbed, start of 2nd phase
Establishment of Foundation for 1st phase SG

Designation of a Smart Grid Leading
Country by MEF

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Activation of Jeju demonstration project
Expansion of the area and scope of Test-bed- Current test-bed complex is restricted to commercial facility, factory,apartment etc.
- expand from suburban to downtown in Jeju

Enactment of the operating guidelines about demonstration project- Development activation of new business models
Reinforcement of connectivity with new businesses- K-MEG ⇒ connected with Jeju test-bed complex

Activation of the organization promoting Smart Grid- contents reinforcement and development of the theme tourist route-813/43

System reformation for new business creationEstablishment of the demand management market- Provider ⇒ Reduction of the power demand ⇒ Reward of the performance

Introduction of pricing by the season or the time for housing- Real Time Pricing

Activation of the zone electric business applying Smart Grid
Infrastructure to spread and expand Smart Grid
Spread of the smart metering infrastructure like AMI- 100% dissemination, specially IHD, by 2020

Early construction of the charging infrastructure for EV
Construction of Smart Grid building- K-MEG (Korea-Micro Energy Grid) technology and development

Method promoting the model city of Smart Grid
- later 2012, the base zone of commercialization

14/43In the view of Korea
Reformation of 3E(Energy - Environment - Economy)
Decrease of Korean energy consumption by 3%(electronic energy 10%) and its

Energypick loads by 6%

Environment
EconomyDecrease of Korean greenhouse gas emissions by 230 million ton
Import decrease of fossil fuels

Reduction of energy

Import (one million USD)

Reduction of CO2emissions (1000 ton)

Energy import decrease by 43.2 billion USD
Export increase(one million USD)

232,786
69,691’12’30’12

65,314
19,565

8,367’20’3086,008116,10737,595253’20(the number)

453,012431,183471

Job creation’12’20’30’12’20’30

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Smart Grid, Why in Jeju?

Jeju Carbon Free Island

Proper Scale Electric Power SystemJeju Special Self-Governing Province

Easy reformation of system and legal system

Easy construction and distribution of Smart Grid

Global Clean & Green Image

Connection of 4 lines of HVDC

The best optimal place of promotion
for the world market

minimization of system influence and expansionof infra applying new technology

OptimalEnergy

10 Million Tourist Visitors per year

Experiential space for the people in green
growth period

PlaceApplicabletoGreenabundant resources such as Wind, Solar etc

Global Platform Island

Optimal Place of Electric Vehicle operation

Easy construction of optimal-scale infrastructure

Powerful Driving Will of Jeju Province

Fosterage of Smart Grid as New Growth Engine행원리 픙력단지동광리 태양광 마을가파도 Carbon Free Island

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Global Green Growth Model, Jeju

Create local income and jobs by improving industrial structure
Promote high value-added green high-tech industries
Create business models, and allow immediate commercialization(Object)Gapado Carbon Free lsland System

17/43 period : 2011.11~2013.10

Gapado Carbon Free Island system

 Power : renewable energy 100%
 Car ; EVhome : smart meter- .
Promote Jeju as global smart grid platform to bring forth green technologies throughupgrading the world’s current largest and most advanced Jeju Smart Grid Test Bed into a
Jeju-wide one Test Bed (R&D) → Pilot City (Business model development) → Hub City (Commercialization)

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Completion ofconstruction’11.6.1

2nd phase total operation’11.5.31
Completion of 1st phase’10.11.9
Completion of TOC(Total Operation Center)’09.12.16’09.8.31

Singing the agreement for SG Testbed
Designation of Jeju as the SG Testbed

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Objective : to early construct the world-biggest and high-tech Smart Grid
Demonstration to stimulate commercialization of the related technology and theexport industrialization

Period : Dec. 2009 ～ May 2013
 (Basic Phase) Dec. 2009 ～ May 2011 : Infra construction
 (Extensional Phase) June 2011 ～ May 2013 : integration operation

Working expenses : 224 million US dollars
 government - 64 million US dollars, Private - 160 million US dollars

Location and target : Gujwa-eup Jeju-si / 6,000 families
Project contents : Technology development of Smart Grid and demonstration
associated with Power Grid
 Five domains : Smart Place, Smart Transportation, Smart Renewable,
Smart Power Grid, Smart Electricity Service
 Participants : 12 consortiums, 168 companies

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Area : 186㎢ (1/10 of Jeju island, 1849㎢), population : 15,000, #household: 6,250
Gujwa-eup
Jeju City

Seogwipo City

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Samsung electronics, Taihan Electric Wire, Nuri Telecom etc (37)

SmartPlace(94)Samsung electronics, Korea Cable TV, NexG etc (28 companies)
Samsung SDS, Samsung Trade, Rootech etc (14 companies)
LG U+, G pure cell, GS construction etc (15 companies)

Smart
Transport(42)Smart
Renewable(32)

Samsung SDI, Lotte data communication, P&E Solution etc (22)SK network, Iljin Electrics, Ientech etc (13 companies)
LG CNS, ABB Korea, NexCon Take etc (7 companies)
KOSPO, Hyosung, LSIS etc (16 companies)
Maxcom, Icel Systems Korea etc (6 companies)
LG Chem, Woojin Industrial Systems, DaeKyung Engineering(10)SmartPower GridKEPCO KDN, LSIS, AnyGate etc (16 companies)

Smart
Electricity
ServiceWooam, Bitech Information & Communication etc (5 companies)

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globally competitive business industries
Total of 168 companies participating in Electricity,telecommunication, vehicles, oil refining,smart appliances etc.
※ reduction of power consumption by 20% using smart meters

Convergence project of various businesses
creation of innovated BIZ models using state of theart technologies
Integrated demonstration of 5 areas such as
Smart Place, etc.
Companies are making greater investments for thedemonstration project
171 billion won (160 million US dollars) of private
investment

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It affords people the chance to experience diverse Smart Grid technologies
and services such as smart meters, IHD, EV charging and ride, and utilization ofrenewable energy .
POSCO’s Smart Renewables
Experience Hall

PR Center/KEPCO Experience Hall

Gimnyeong Beach

LG Live Green

Smart Grid Test-bed
Gujwa-eup

Women Driver’s Museum
Manjanggul
Hado Beach
SK/HHI Smart Grid Experience Hall

Experience of electric car

KT/GS Caltex Smart Cafe

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Contents

Power plant

Real-time confirmation of Power usagepatterns
Various power exchange (sales, inversesales)
Optimization of power consumption ofHome appliances

Characteristics
Smart green home
Convergence services
Smart appliance
Energy Efficiency
Home/Building

Participation
Participating : 101 companies(4 Consortiums)

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Contents
Construction of EV charging
infrastructure
Decentralized power associated with theEV battery
Re-sales using charged power of EV

Power plant

Characteristics
High-speed charging Infra
Business model associated withthe additional services
Charging using decentralizedpower
Home/
BuildingEV

Participation
Participating : 39 companies(3 Consortiums)

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Contents
Stable association of renewableenergy with power grid

Renewable
EnergyPower plant

Expansion of wind power andphotovoltaics system
Effective use of renewable energy

Characteristics
Renewable energy source
Operation of RE.
Application of RE.
Home/
Building

Participation
Participating : 37 companies(3 Consortiums)

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Contents : intelligent power grid,fault detection and auto-recovery

Power plantParticipating 21 companies , KEPCO etc.

Contents : construction of TOC (TotalOperation Center) new power exchange

Home/
Building

Participating 6 companies, KEPCO,
Power Exchange etc.

Ⅲ

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World EV Market Forecast
Volume: million units
Market share: percentSource: Deutsche Bank Report

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World’s Fourth Green Car Powerhouse by 2015

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SeoulPohang• Target: car sharing, buses, taxies• Plan (by 2014): 1,970 EVs, 1,983chargers• Target: public institutions, schools,
military camp, steel complex• Plan (by 2014): 32 EVs, 62 chargers

3 1
32Bucheon• Target: public organizations, publichealth centers, park management, carsharing• Plan (by 2014): 157 EVs, 180 chargers

Dangjin• Target: small towns and islets, village
guiding and patrolling, the elderly andinfirm care• Plan (by 2014): 200 EVs, 200 chargers• Target: official vehicles, buses, taxies,
car sharing• Plan (by 2014): 300 EVs, 320 chargers

31• Target: public health centers, visiting
nurse service, transportation, patrolling• Plan (by 2014): 200 EVs, 200 chargers

Yeonggwang

Changwon

1

2Gwangju

2• Target: outside duties and patrolling,hydrogen energy conference (2014)
information center• Plan (by 2014): 300 EVs, 320 chargers

Jeju• Target: public institutions, rental cars,taxies• Plan (2020): 30% of cars (72,000 cars)

1 1차 선도도시2 2차 선도도시3 3차 선도도시Ⅳ

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Vision and Strategy

Build Jeju-wide EV Pilot City Develop Jeju into EV Pilot City
 Promote Jeju as global hub for EV industry

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Promote Jeju as global hub of EV industry through development as EV Pilot City
utilizing Jeju’s premier EV infrastructure and operating conditions

EV Distribution Target Phase 1 (by 2017): 10% replacement, including public-use and rental cars (29,000 vehicles) Phase 2 (by 2020): 30% replacement, including buses, rental cars (94,000 vehicles) Phase 3 (by 2030): 100% distribution (371,000 vehicles)
Plan EV distribution target in 2013: 300 cars (currently 223: 146 public, 77 private)- Provincial subsidies for public transportation and private EV consumers: 2.5 billion won Set up integrated operating system for charging infrastructure in first half of 2013
- Establish integrated EV charger operating center: 371 chargers (including 179 pilot chargers)
 Develop Jeju EV industry into key local industry by measures including attracting EV companies
to Jeju

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Infrastructure Considerations
Infrastructure
Installment− Public-use cars − Public organizations− Rental cars
− Hotels, tourist
attractions and airport− Rental car lots
− Major roads,− Taxis
downtown areas

Phase 1(~2017)

Phase 2(~2020)

Phase 3(~2030)

 Operate charging facilities

 Complete charging infra.

 Complete charging infra.

established for test-bed

establishment for rental

distribution to satisfy

projects and establish morecars (major tourist

volume of EV use

facilities to cover wider area

attractions, and In line with the phase 1 of EV

accommodations)

EV Distribution− BusesInfra.
Map− Bus garages

 Reflect characteristics of eacharea in establishment planning Consider existing charging
facilities in future plan

Directions in charge infra.
Phase 1

Phase 2Phase 3

Test bedcenteredexpansionMoreinfra.
hubs

Full
coveragePlan(Details)

distribution strategy,

 Complete establishment ofestablish charging infra. atcharging and battery

public organizations, rental

exchange stations for

car and bus garages

public transport Considering needs of rental

 To meet wider EV use,

cars and taxis, build fast-build more charging infra. incharging and battery

residential and commercial

exchange stations alongzones

major toads

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Central Government
 Establish national road map Develop promotion policies
 Strategically nurture pilot andhub cities
 Encourage specialized
applications for each city

 Provide Jeju-specificknowledge and requirements
 Develop Jeju industrial
cooperation model Devise measures to revitalize
Jeju

Jeju Research Institutions
and others

Jeju Special Selfgoverning Province Plan strategic road map Set up legal and regulatory
systems
 Support and nurture privatebusinesses Seek measures to promotetechnology and business Develop advanced servicemodel Suggest and realize to-bemodelsEV Charging Infra.
OperatorJeju Provincial Council
 Collect public opinion
 Design balanced policies
 Check and revise long-term
vision, and allocate resources
accordingly Participate in planning Jeju
road map Propose support programs Create business model andcooperation

EV Business Operator,
Charging StationOperator

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MOU on EV & ITS with Nagasaki, Japan (in Jeju)• MOU between Posco ICT and Nagasaki on EV & ITS• In cooperation with the Jeju Provincial Office, Jeju
National University, Jeju Development InstituteAttended Nagasaki EV & ITS Conference• Attended Nagasaki EV & ITS Conference (Goto Islands)• Technological exchange with the Nagasaki Ebisu
Consortium

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Established (Aug. 23, 2012)• Established by Posco ICT Consortium• Nation’s first privately-owned charging business operator• Launched EV rental service in cooperation with Jeju

(EV charging infra. business)

Provincial Office• Jeju’s first EV charger maker, obtained KC mark forchargers

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Smart Grid-affiliated project; Integrated operation testing; EV charging infra. testing
Best practices regarding EV test bed

Integrated Micro Grid Operation Center

Electric Vehicle Charging Demonstration

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