H. Yoo
Research expert covering South Korea
Energy storage systems in South Korea - Statistics & Facts
Less than a decade ago, South Korean companies held over half of the global energy storage system (ESS) market with the rushed promise of helping secure a more sustainable energy future. However, a string of ESS-related fires and a lack of infrastructure had dampened investments in this market. This was a heavy hit for the energy industry, but developments of safer technology and renewed state support have recently given new life to the domestic ESS market. According to South Korea’s “10th Basic Plan for Electricity Supply and Demand,” the government aims to capture over 30 percent of the global ESS market by 2036. Such a requires changes on multiple fronts. Domestic infrastructural support for large-scale utilization, improved safety due diligence, and quick adoption of new technologies are some of the concerns likely to heavily influence the future of South Korea’s ESS market renewal.
Energy storage technology and leading companies in South Korea
Among South Korean companies providing ESS products, Samsung SDI and LG Energy Solution have represented almost all the country’s global ESS market share. Both companies focus on producing lithium-ion batteries (LiB), the most used type in electric vehicles and residential and commercial buildings. Although LiBs are considered the gold standard for their long durability and high-energy density, lithium iron phosphate (LFP) batteries have taken over the market in countries like China and the United States due to their comparatively higher stability and lower costs. Recognizing this market shift, Samsung SDI, LG Energy Solution, and SK On have also started or expressed plans to manufacture their own LFP batteries in the future. However, the state of ESS infrastructure in South Korea still falls short of wide-scale domestic renewable energy utilization.Renewable energy and power grid management
South Korea can produce a fair amount of renewable energy under the right conditions, especially in some regions like the island of Jeju and Honam. These regions often produce too much power, resulting in grid instability and mandating power output restrictions. Large-scale ESS facilities are designed to manage this volatility by storing extra generated power to be used during periods of high demand. Helping supply power regardless of weather conditions, such ESS facilities play a vital role in a sustainable carbon-free future. The South Korean government has estimated that around 46 trillion South Korean won would be needed by 2036 to install the ESSs necessary to compensate for the inflexibility of renewable energy. In a hopeful start to the growth of the domestic ESS market, the government recently introduced a large-scale ESS construction project to build three ESS facilities on Jeju by 2025. Indeed, South Korea will likely continue relying on the development of safer and more efficient ESS technology for actualizing a clean energy future.
