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1540-7977/11/$26.00©2011 IEEEIEEE power & energy magazine january/february 2011

A National Vision

© S T O C K

B Y T E

, M A P N A S A P U B L I C D O M A I N



IEEE power & energy magazine january/february 2011

Therefore, in order to respond to climate change, increaseenergy efciency, and create a new growth engine for itseconomy, Korea has established a national road map for asmart grid that includes three phases and ve implementa-tion areas.

Smart Grid Visionand Implementation AreasThe national vision of a smart grid in Korea has been set torealize a low-carbon and green-growth society by establishingthe world’s best nationwide smart grid infrastructure. Capi-talizing on certain national advantages—highly populatedland, the world’s best broadband Internet networks, and asingle power transmission and distribution company—Koreahas established a proactive and ambitious plan for a full,nationwide implementation of smart grid technology. In therst stage, a smart grid test bed with innovative technologyand business applications will be built by 2012. In the secondstage, smart grid infrastructures focused on consumer benetswill be built across Korea’s metropolitan areas by 2020. In thenal stage, the world’s rst-ever nationwide smart grid willbe completed by 2030. The three stages of the plan are sum-marized in Table 1.

Unlike other countries, Korea has chosen to focus primar-ily on emerging new business opportunities in ve implemen-tation areas:

a smart power grid

smart homes and buildings (enabling smart consumers) smart transportation

smart renewable energy smart electricity service.

First, the smart power grid project will build a powergrid that allows various kinds of interconnections betweenareas where energy is consumed and energy supply sources.The rolling out of such networks will pave the way for newbusiness models and for the building of a power grid self-detecting and automatic recovery system that will ensure areliable and high-quality power supply. By 2030, the proj-ect aims to realize an annual blackout time per householdand transmission and distr ibution loss of nine minutes and3%, respectively.

Korea’s smart consumer project will encourage consum-ers to save energy by using real-time information and smartappliances in buildings and homes that operate in responseto real-time wholesale market prices and retail electric util-ity rates. The smart consumer project has set power con-sumption savings and smart meter diffusion rate targets of10% and 100%, respectively, by 2030. The key implemen-tation targets for the smart power grid and smart consumerinitiatives are shown in Figure 2.

Next, a smart transportation project will build a nationwidecharging infrastructure that will allow electric vehicles to becharged in a wide variety of locations. It also establishes avehicle-to-grid (V2G) system in which the batteries of electricvehicles are charged during off-peak hours while the resale ofsurplus electricity takes place during peak times. The smart

transportation project aims to deploy 2,456,000 electric vehi-cles and commission 27,140 quick-charging stations by 2030.

Vision

Vision and Goals of Korea’s Smart Grid

Goalsby Phase

FiveImplementation

Areas

Pave the Way for Low Carbon, Green Growth Through a Smart Grid

Build a Nationwide Smart Grid

Build a Smart Grid Across Metropolitan Areas

Build a Smart Grid Test-Bed

2012

2020

2030

Smart Power Grid

Smart Place

Smart Transportation

Smart Renewable

Smart Electricity Service

— Build a Monitoring and Control System of the Power Grid— Build a Failure Prediction and Automatic Recovery System of the Power Grid

— Distribute Nationwide Smart Meters— Build an Automated Energy Management System

— Build a Nationwide Charging Infrastructure— Build an ICT-Based Electric Vehicle Operating System

— Create a Large-Scale Renewable Energy Generation Complex— Develop Large Capacity Energy Storage Devices

— Develop a Various Pricing System— Develop Consumer’s Electricity Trading System

figure 1. The vision and goals for Korea’s smart grid.



january/february 2011 IEEE power & energy magazine 45

early on. Smart metering and bilateral communication sys-tems for all customers are expected to be installed no laterthan 2020 by making these items part of mandatory regu-lations. In addition, a charging infrastructure will be estab-lished as quickly as possible to ensure that the promotionand commercialization of electric vehicles is implementedwithout delay.

Finally, to build and update a legal and regulatory frame-work, special legislation concerning the establishment of andsupport for the smart grid will be prepared. To ensure the pro-motion of this new industry through a convergence of relatedindustries, the necessary amendment of relevant laws, regula-tions, and complementary regulatory programs will also becarried out in the early stages of market formation. Moreover,a real-time billing system will be built in a timely manner inorder to raise consumer awareness of power consumption andsavings. Policy measures aimed at ensuring a stable power sup-ply in the light of smart grid technology deployment will alsobe implemented.

The Jeju Smart Grid Test BedThe most noticeable plan in Korea’s smart grid initiatives isthe construction of a smart grid test bed on Jeju Island (seeFigure 4). The Korean govern-ment selected the self-governingJeju Province as the locationfor the smart grid test bed inJune 2009.

As a world leader in smartgrid technology, Korea estab-lished the Jeju smart grid test bedat the same time it announced itsnational road map for the smartgrid. The purpose of the test bedis to determine the best smartgrid technologies and the mostviable business model. The testbed should prove that the smartgrid can become the basis for alow-carbon, green-growth strat-egy. Therefore, this project dem-onstrates Korea’s aspirations inthe area of green growth. TheJeju test bed will become theworld’s largest smart grid com-

munity and will allow for testingof the most advanced smart grid

technologies and R&D results, as well as the developmentof new business models. Jeju will also serve as the foun-dation for the commercialization and industrial export ofsmart gr id technologies. It is expected to contr ibute greatlyto strengthening Korea’s position as a leader in the globalsmart gr id industry.

This project will be conducted with the participationof the Korean government, the Korea Smart Grid Institute(KSGI), Korea Electric Power Corporation, Jeju Province,and the Korea Smart Grid Association. In addition, com-panies, other research institutes, and academic institutionswill be joining in the effort. A total of US$200 million willbe invested between 2009 and 2013, and 12 consortia inve areas—a total of 168 companies—will participate intesting technologies and developing business models. Thethree strategic directions stated in the vision and goals forthe Jeju initiative (see Figure 5) clearly reveal the green-growth strategy embedded in this project. From the nationalstandpoint, it aims to raise energy efciency and implementgreen-energy infrastructure by building an ecofriendlyinfrastructure that reduces CO 2 emissions. From the indus-trial standpoint, it seeks to secure a new growth engine thatwill drive Korea in the age of green growth. And from an

Total Number of EV Distributed(Unit: 1,000, Cumulative)

Quick-Charging Stations(Unit: Number, Cumulative)

0.5

3.1% 6.1% 11.0%

152 2,436 100 4,300 27,140

2012

2012

2020

2020

Renewable Energy Ratio Household Electricity EnergySelf-Sufficiency Ratio

2030

2030

2012

2012

Pilot Test 10% 30%

2020

2020

2020

2030

2030

15% 30%

2030

Consumer’s Right to ChooseTheir Electricity Rate Plan

Pilot Test2012

Choose anElectricity Plan

2020

InfrastructureBuilding

2012

Market Participation Rate of Consumers

figure 3. Key implementation targets for smart transportation, renewable energy,and electricity service.

Korea and the U.S. state of Illinoishave agreed to collaborate in a smart gridand green-technology initiative.




individual standpoint, it looks to enhance the quality of lifethrough the experience of and participation in a low-carbon,green society. Moving forward, Korea plans to nurture thesmart grid as a new growth engine of the nation by ensuringthat the technologies and business models developed andtested at Jeju are demonstrated and deployed not only onthe Korean peninsula but all over the world. In this way, themost pressing concerns of our time, climate change and theenergy crisis, could be effectively alleviated.

Jeju’s Five Implementation AreasThe Jeju smart grid test bed includes all ve areas of thesmart grid implementation from the national road map: asmart power grid, smart buildings and homes, smart trans-portation, smart renewable energy, and smart electricityservice. For the test bed’s smart power grid, Korea Elec-tric Power Corporation (KEPCO) and 21 participatingcompanies investing a total of US$30 million will developsmart transmitter and automated protection and recovery

National Standpoint Industrial Standpoint Individual Standpoint

Vision

Objective

ThreeStrategic

Directions

Commerciallzation and Industrial Export of Smart Grid Technology

Build World’s Largest and Most Advanced Open Test Bed by 2012

Build Green EnergyInfrastructure

Secure New DrivingForces for Growth

Secure New Growth Engines thatwill Drice the Country’s

Development in the Age ofGreen Growth

Introduce a Low-Carbon,Green Lifestyle

Raise Quality of Life ThroughExperiences of and Participationin a Low-Carbon and Green Life

Build Eco-Friendly EnergyInfrastructure, Which ImprovesEnergy Efficiency and Reduces

CO 2 Emissions

figure 5. Vision, goal, and strategic directions for the Jeju test bed.

Features:— Integrated Test Bed— Close Collaboration Between Public and Private Sectors— Verification of Different Power Market Models

• Participants: Korea Electric Power Corporation(KEPCO) Plus Automakers, Telecommunications Companies and Home Appliance Manufacturers

• Open to Foreign Companies-Includes Major Companies Such as LG, SKT, KT, and Samsung

figure 4. The Jeju smart grid test bed.




technologies. In the smart buildings and homes (or smartconsumer) area, SK Telecom, KT, LG, KEPCO, and 101participating companies investing a total of US$80 mil-lion will develop and standardize advanced metering infra-structure technologies and smart home and smart build-ing technologies. KEPCO, SK Energy, GS Caltex, and

39 companies that participate in smart transportation willspend US$40 million to develop electric vehicle parts andcharging stations, vehicle-to-grid and ICT systems, andadditional service models. In the smart renewable energyarea, KEPCO, Hyundai, Posco, and 37 companies investinga total of US$35 million will develop coordination and sta-bilization technologies for renewable power with efcientimplementation across the power grid. Finally, Korea PowerExchange, KEPCO, and six companies will spend US$15million to develop real-time pricing, demand response, andonline consumer power-trading systems for smart electricityservice. Figure 6 provides an overview of the ve Jeju testbed areas and the implementation timetable.

Jeju Test Bed: Current FocusSince Jeju was selected as the smart grid test bed in June 2009,construction of a total operation center (TOC) for the test bedhas begun and will be nished in 2010. At the same time, leg-islation—including the special act on support for the smartgrid—will be proposed in 2010 to begin building the basiclaws and regulations needed to secure long-term investmentfunding and the provision of incentives. A variety of tests andimplementations of smart grid technologies in the Jeju smartgrid test bed will be carried out through 2013, when the project

is scheduled to be completed. As follow-ups to the Jeju proj-ect, smart grid pilot city projects and smart grid implementa-tion projects in metropolitan areas will be developed by 2020,followed by the nationwide smart grid implementation thatwill be completed by 2030.

The Jeju smart grid test bed, which aims to become the

world’s rst all-inclusive smart grid test bed location, con-sists of one PR center and four exhibition halls. Spearheadedby Korean conglomerates including KEPCO, LG, KT, andPOSCO, the Jeju facility gives visitors an opportunity tofully experience the wide array of prototypes available,including smart meters, in-home displays, smart appli-ances, EV charging facilities, wind turbines, and photovol-taic equipment. Figure 7 shows the various installations thatmake up the test bed.

International Collaborative ActivitiesIn order to facilitate the successful implementation of itssmart grid technologies, the Korean government has movedforward in the area of international collaborative activi-ties. First, in June 2009, the Korean Ministry of Knowl-edge Economy (MKE) and the U.S. Department of Energy(DOE) issued a joint statement of intent (SOI) in which theyagreed to collaborate closely on work in the green-energysector, including the smart grid. The agreement represents astrong foundation for cooperation between the two nationson issues relating to clean and green energy. In addition tosmart grid technology, the agreement covers carbon captureand storage and nuclear, methane hydrate, and geothermalgeneration. In addition, an investment forum on the smart

Five Areas of the Test Bed

Smart Power Grid

Build Smart Power Grid Infrastructure

Smart Place Smart Transportation Smart Renewable

Smart Electricity Service

Provide New Electricity Services

Phases

Basic Stage(Infrastructure Building)

Expansion Stage(Integrated Operation)

2010–2011

2012–2013

Smart Power Grid,Smart Place, Smart Transportation

Smart Renewable,Smart Electricity Service

–Linking Grid Networks and Consumers, Grid Networks, and Electric Vehicles

–Provide New Power Services–Accommodate Renewable Energy Sources to the Power Grid

Period Key Focus Areas Key Contents

Phase-by-Phase Implementation Plans

Manage Clean Energy ReliablyLay the Foundation forEfficient Energy Use

Lay the Foundation forExpanded Distribution of

Electric Vehicles

figure 6. Overview of Jeju smart grid test bed implementation.




POSCO’s Smart RenewablesExperience Hall

LG Live Green

Experience Smart Green ServicesThat are Based on Smart Home

Appliances and Smart Meters

PR Center

Jeju Smart Grid Test Bed

See a Demonstration and ExperienceHome Energy Saving Services

Connected via EVs and Photovoltaics

SK Smart GridExperience Hall

EV Riding and Charging Infrastructure Experience

KT/GS Caltex Smart Cafe

See a Demonstration andExperience Services that IntegrateElectric Power, Broadcasting, and

Telecommunications Services

EVs Are Placed Throughout the Test Bed to Provide Visitorswith EV Riding and Charging

Comprehend Korea’s SG Conceptsand the Jeju Smart Grid Test Bed

Experience “Green Life” Where Newand Renewable Energy as Well as

Storage are Applied

figure 7. Jeju test bed PR center and exhibition halls.




grid, cosponsored by Korea Smart Grid Association (KSGA)and GridWise Alliance (GWA), was held in Washington,D.C., in June 2009. Both organizations signed a compre-hensive memorandum of understanding (MOU) regardingindustry-focused collaborations on smart grid technologyand its implementation.

Members of the Major Economies Forum on Energyand Climate (MEF) sparked the second signicant interna-tional collaborative effort on behalf of the smart grid. On 14December 2009, the Korean government took part in estab-lishing an ofcial MEF smart grid road map during a UnitedNations meeting in Copenhagen. Along with Italy, Koreahad been designated a leading smart grid country at the G-8summit talks of July 2009, and the two nations then col-laborated closely to complete an international road map forthe smart grid. The MEF smart grid road map was reviewedby the MEF member nations, and the nal road map wasannounced in December 2009. The key contents of the MEFroad map indicate that global collaborations on smart gridregulation and policy development are critical to the timelydeployment of smart grid technologies and business modelsand are also necessary in order to effectively remove anyexisting and potential barriers. The road map also empha-sizes the importance of smart grid technical standardsdevelopment, human resource training and exchanges, andcybersecurity and privacy. To follow up on the road mapand develop detailed collaboration agendas among membernations, the establishment of a smart grid working groupunder the aegis of the MEF has been proposed.

Finally, Korea and the U.S. state of Illinois have agreed tocollaborate in a smart grid and green-technology initiative.In January 2010, Korea and Illinois signed an MOU regard-ing cooperation on smart grid and green technology develop-ment and deployment in the energy, economic development,environmental, and related sectors. Both parties agreed tofoster cooperation in the eld of smart grid and green tech-nology development by taking actions to deploy and imple-ment smart grid business models and technologies developedand veried by both parties; by exploring opportunities for

joint research and industrial development collaboration; bydeveloping strategic industrial and technological networks orcollaborative councils in smart grid technology developmentand standardization that capitalize on trends and opportuni-ties of mutual interest; by exploring opportunities to addressthe newly emerging markets that include, but are not limitedto, demand response, electric vehicles, energy managementsystems, and advanced battery research; and by fosteringinformation, technology, and human resource exchangesamong government agencies, businesses, and research insti-tutions. In order to realize this mutually declared commit-ment, a smart grid and green economy committee (SGGEC)was established in March 2010 to direct and supervise thecooperation. Concrete collaborative projects will be initiated

by the end of 2010 and will last for three years. Potentialprojects include smart building, electric vehicle charging sta-

tions, and workforce development. A successful collabora-tion is expected to support the entry of smart grid technologyinto global smart grid markets and to create new investmentsand new jobs in the smart grid arena.

Future DirectionsKorea has been pursuing implementation of the smart gridas one of its pioneering projects in the era of low-carbonand green growth. From a domestic point of view, the smartgrid has been included in the ve-year green-growth plan tobe implemented as a core national policy task. A nationalroad map for the smart grid has been established, an inno-vative smart grid test bed is being built, and the steps thatfollow are supposed to be undertaken in a timely mannerto successfully implement a “smart grid society” in Korea.In addition, several signicant international activities havebeen undertaken for the past few years, including an agree-ment on the smart grid with the DOE and GWA, smart gridleadership at MEF and the establishment of an MEF smartgrid road map in collaboration with Italy, and cooperationon global development and deployment of smart grid tech-nology and business models with Illinois.

In 2010 and 2011, with the goal of early penetration andadoption of the smart grid, the following tasks are to be initi-ated or completed:

enactment of special legislation on the establishmentof and support for the smart gridconstruction of a smart PR center and exhibition halls

installation of a substantial amount of smart grid in-frastructurediffusion of pilot smart grid equipmentselection of smart grid demonstration cities

development of the Korea-Illinois projectstandardization of smart grid technology.

From now on, Korea will be moving forward with concretesteps toward smart grid development. In terms of policy andpractices, key future directions for the sustainable implemen-tation of a smart grid in Korea include support for develop-ment and standardization of core technologies, expansion ofsuccessful business models, establishment of the necessaryinfrastructure, and development of a legal and institutionalframework.

For Further ReadingMinistry of Knowledge Economy, “National smart gridroadmap,” Korea, Jan. 2010.

Korea Smart Grid Institute [Online]. Available: www.smartgrid.or.kr

Ministry of Knowledge Economy and Korea Smart Grid In-stitute, “Brochure on the Jeju smart grid test-bed,” Feb. 2010.

Biographies Jinho Kim is with Kyungwon University, Republic of Korea.

Hong-Il Park with the Korean Ministry of KnowledgeEconomy. p & e

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