A National Vision Smart Grids Korea (1)

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1540-7977/11/$26.00©2011 IEEE0 IEEE 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


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january/february 2011 IEEE power & energy magazine 41

Policy Directionsfor the Smart Gridin Korea

Jinho Kimand Hong-Il Park

A

A NEW NATIONAL VISION FOR LOW-CARBON, GREEN

growth was announced in Korea on 15 August 2008, and a more

concrete plan was initiated through the presidential green-growth

committee on 16 February 2009. Korea is thus actively pursuing

sustainable development dealing with climate change and energy

security. At the same time, it is shifting toward a low-carbon econ-

omy and a society capable of recovering from climate change. Aspart of these efforts, Korea has launched a national smart grid

project to achieve green growth in a proactive, transparent, com-

prehensive, and effective way. The project envisions laying the

foundation for a low-carbon, green-growth economy by building

a smart grid. It will thus serve as a yardstick with which to evalu-

ate the future of Korea’s green-growth economy. Korea’s ambi-

tious plan to build a smart grid is evidence of its determination to

realize its low carbon and green-growth strategy. In this article, a

national vision and road map toward the smart grid in Korea will

be presented, followed by a discussion of future policy directions

for the successful implementation of the smart grid.

National Road Map for the Smart Grid

Background Korea has recognized the necessity of rolling out the smart grid as

infrastructure for the low-carbon, green-energy economy in order

to help meet its binding commitment to reductions of greenhouse-

gas emissions. With that in mind, the Korean government has begun

to implement relevant policies, action plans, and projects that can

be echoed by the public. Korea is pursuing the smart grid initiative

as a top national agenda to help achieve its vision of a low-carbon

and green-growth economy. In line with this national direction,

Korea’s presidential green-growth committee in 2009 publicly pre-

sented its vision for building an advanced, green-energy country

and specified the primary contents of the smart grid. Afterwards,

in November 2009, the committee collected the views of experts

from industry, academia, and various research institutes in order to

outline a national road map. As a leader in smart grid technology,

Korea announced a smart grid national road map in 2009 that calls

for complete nationwide implementation of smart grid technology

by 2030. The vision and goals for Korea’s smart grid implementa-

tion are shown in Figure 1.

To achieve its national goal of reducing greenhouse-gas emis-

sions—Korea has committed to cutting its emissions by 30% as

compared with a business-as-usual (BAU) baseline by 2020—

Korea has decided to build its smart grid as a fundamental enabler

for expanding the supply of renewable energy and electric vehi-

cles. As Korea works to ensure national energy self-sufficiency

and the transition to a low-carbon society (the 2008 national

energy master plan aims at a 46.7% energy source unit increase

by 2030—that is, an annual average increase of 2.1%), the imple-

mentation of the smart grid will be a powerful means of raising

energy efficiency through power demand dispersion and energy

savings. In addition, as the smart grid market is expected to grow

rapidly, Korea wants to enter the global market and turn its gains

in this area into a major export industry by capitalizing on smartgrid technology as a new national growth engine.

Digital Object Identifier 10.1109/MPE.2010.939166

Date of publication: 21 December 2010


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2 IEEE power & energy magazine january/february 2011

Therefore, in order to respond to climate change, increase

energy efficiency, and create a new growth engine for its

economy, Korea has established a national road map for a

smart grid that includes three phases and five implementa-

tion areas.

Smart Grid Visionand Implementation AreasThe national vision of a smart grid in Korea has been set to

realize a low-carbon and green-growth society by establishing

the world’s best nationwide smart grid infrastructure. Capi-

talizing on certain national advantages—highly populated

land, the world’s best broadband Internet networks, and a

single power transmission and distribution company—Korea

has established a proactive and ambitious plan for a full,

nationwide implementation of smart grid technology. In the

first stage, a smart grid test bed with innovative technology

and business applications will be built by 2012. In the second

stage, smart grid infrastructures focused on consumer benefits

will be built across Korea’s metropolitan areas by 2020. In the

final stage, the world’s first-ever nationwide smart grid will

be 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 five 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 power

grid that allows various kinds of interconnections between

areas where energy is consumed and energy supply sources.

The rolling out of such networks will pave the way for new

business models and for the building of a power grid self-

detecting and automatic recovery system that will ensure a

reliable and high-quality power supply. By 2030, the proj-

ect aims to realize an annual blackout time per household

and transmission and distribution loss of nine minutes and

3%, respectively.

Korea’s smart consumer project will encourage consum-

ers to save energy by using real-time information and smart

appliances in buildings and homes that operate in response

to 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 of

10% and 100%, respectively, by 2030. The key implemen-

tation targets for the smart power grid and smart consumer

initiatives are shown in Figure 2.

Next, a smart transportation project will build a nationwide

charging infrastructure that will allow electric vehicles to be

charged in a wide variety of locations. It also establishes a

vehicle-to-grid (V2G) system in which the batteries of electric

vehicles are charged during off-peak hours while the resale of

surplus 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

Goals

by Phase

Five

ImplementationAreas

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.


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The smart renewable energy project will build a smart

renewable energy power generation complex across the

nation by rolling out microgrids. This will ultimately lead

to the emergence of houses, buildings, and villages that

can achieve energy self-sufficiency through the deploy-

ment of small-scale renewable energy generation units in

every end user’s location. The

smart renewable energy project

has set market penetration and

household self-sufficiency ratio

targets of 11% and 30%, respec-

tively, by 2030.

Finally, with the launch of a

variety of energy-saving electric-

ity rate plans, the smart electricity

service project will offer consum-

ers more choice in satisfying their

energy needs. Key implementa-

tion targets for smart transporta-

tion, renewable energy, and elec-

tricity service are presented inFigure 3. In addition, it aims to

deliver a wide array of added electricity services through the

marriage of electricity and information and communication

technology (ICT) and to put in place a real-time electricity

trading system for the exchange of electricity and deriva-

tives. The smart electricity service project has set a con-

sumer participation target of 30% by 2030.

table 1. Korea’s smart grid implementation plan.

ImplementationDirections by Phase

First Stage (2010–2012)Construction and operation ofthe smart grid test-bed (technicalvalidation)

Second Stage (2012–2020)Expansion into metropolitan areas(intelligent consumers)

Third Stage (2021–2030)Completion of a nationwidepower grid (intelligentpower grid)

Smart Power Grid —Real-time power grid monitoring

—Digital power transmission—Operate optimal distribution

system

—Predict possible failures in power

grids—Connect the power system with

that of other countries—Connect the power delivery

system with distributed generationand power storage devices

—Self-recovery of power grids

—Operate an integratedenergy smart grid

Smart Consumer —Power management of intelligenthomes

—Various choices for consumersincluding rates

—Smart power management ofbuildings/factories

—Encourage consumers’ powerproduction

—Zero energy homes/ buildings

Smart Transportation —Build and test electric vehiclecharging facilities

—Operate electric vehicles as apilot project

—Expand electric vehicle chargingfacilities across the nation

—Effective maintenance andmanagement of electric vehicles

—Make the presenceof charging facilitiescommonly available

—Diversify charging methods—Utilize portable power

storage devices

Smart Renewable —Operate microgrids byconnecting distributedgeneration, power storagedevices and electric vehicles

—Expanded utilization of powerstorage devices and distributedgeneration

—Optimal operation of the powersystem with microgrids

—Expand the application of powerstorage devices

—Make renewable energyuniversally available

Smart ElectricityService

—Consumers’ choice of electricityrates

—Consumers’ selling of renewableenergy

—Promote transactions of electricalpower derivatives

—Implement real-time pricingsystem nationwide

—Emergence of voluntary marketparticipants

—Promote various typesof electrical powertransactions

—Promote convergence forthe market of electricity-based sectors

—Lead the power market inNortheast Asia

Blackout Time Per Household Power Transmission and Distr ibutionLoss Rate

15 min 12 min 9 min

2012

2012

2020

2020

2030 2012

3.9% 3.5% 3.0%

2020 2030

2012 20202030

Maximum Power Reduction

Applied on

a Trial Basis 5% 10%

5.6% 100%

Smart Meters and AMI Penetration Rate

figure 2. Key implementation targets for the smart power grid and the smart consumer.


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Investment and Expected BenefitsTo ensure the successful implementation of the smart grid in

Korea, a total of KRW27.5 trillion will be invested by 2030.

KRW24.8 trillion will be secured through private invest-

ment, while KRW2.7 trillion will be invested by the govern-

ment. More specifically, KRW20.5 trillion will be invested

in building the smart grid infrastructure and KRW7 trillion intechnological R&D.

The expected benefits of the implementation of the

smart grid in Korea have been calculated using an

IBM-developed simulation tool, with indexes reflecting

the stepwise targets in the five implementation areas. In

summary, by 2030 a nationwide smart grid implementa-

tion in Korea is expected to have reduced greenhouse gas

emissions by a total of 230 million tons, to have created an

average of 50,000 new jobs each year, and to have given

rise to new domestic demand for goods and services of up

to KRW74 trillion. Both the investment and the expected

benefits are summarized in Table 2.

Policy Directions forImplementation of the Road Map

To successfully execute the road map for a national smartgrid, the Korean government has specified several policy

tasks, including but not limited to support for technologi-

cal R&D and industrialization, promotion of successful

implementation models, building infrastructure, and estab-

lishing legal and regulatory frameworks. These are sum-

marized in Table 3.

First, in support of technological R&D and industrial-

ization, a national support system for energy-storing tech-

nology, core technology to prepare for a power grid with

upgraded ICT, and security technology will be implemented.

These are the core technologies needed for renewable power

generation and electric vehicle diffusion. In addition, poli-cies to boost domestic demand and promote the opening of

overseas markets will be put in place.

Next, to promote a model for successful implementa-

tion, incentives for realizing a successful implementation

in the Jeju smart grid test bed will be provided. In addi-

tion, strategies supporting the creation of new technolo-

gies and products will be provided; these will include cer-

tification programs for smart products and incentives that

encourage their commercialization.

To efficiently support smart grid infrastructure build-

ing, the core smart grid infrastructure will be established

table 3. Policy directions in supportof the smart grid road map.

Policy Direction Implementation Plan

Support for technological R&D and industrialization • To implement comprehensive and cohesive technological R&D,straddling technological development, standardization, andcommercialization.

• To create new growth engines by invigorating the domestic marketand supporting Korean businesses’ advancement into overseasmarkets.

Promotion of successful models • Forestall the creation of successful models by implementing the JejuSmart Grid Complex and carry out step-wise dissemination.

• Provide incentives for companies to invest and for people toparticipate spontaneously.

Building infrastructure • Offer aggressive incentive programs at the earlier stages to ensureearly infrastructure establishment.

• Establish standardization and certification bases to ensureadvancement into overseas markets and nurture specialists in relatedfields.

• Build a security system/program to ensure the establishment andoperation of a safe smart grid.

Establishment of legal and regulatory frameworks • To ensure the promotion of the new industry through conversionand integration between related industries, carry out the proactiveamendment of related laws and regulations and complementaryregulatory programs from the early stages of market formation.

• Enact and implement the Special Act on the Establishment of and

Support for Smart Power Grid (tentative title) to ensure the stableimplementation of long-term projects.

table 2. Investment plan and key

expected benefits (estimated).

Investment Plan Details (By 2030)

Private investment KRW 24.8 trillionGovernment investment KRW 2.7 trillionTotal KRW 27.5 trillion

Expected Benefits Details (By 2030)Greenhouse gas reduction 230 million tons

Job creation 50,000 per annumDomestic demand creation KRW 74 trillionEnergy import reduction KRW 47 trillionPower plant avoidance KRW 3.2 trillionExport hike KRW 49 trillion


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early on. Smart metering and bilateral communication sys-

tems for all customers are expected to be installed no later

than 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 promotion

and commercialization of electric vehicles is implemented

without delay.

Finally, to build and update a legal and regulatory frame-

work, special legislation concerning the establishment of and

support 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 be

carried out in the early stages of market formation. Moreover,

a real-time billing system will be built in a timely manner in

order to raise consumer awareness of power consumption and

savings. Policy measures aimed at ensuring a stable power sup-

ply in the light of smart grid technology deployment will also

be implemented.

The Jeju Smart Grid Test BedThe most noticeable plan in Korea’s smart grid initiatives is

the construction of a smart grid test bed on Jeju Island (see

Figure 4). The Korean govern-

ment selected the self-governing

Jeju Province as the location

for the smart grid test bed in

June 2009.

As a world leader in smart

grid technology, Korea estab-

lished the Jeju smart grid test bed

at the same time it announced its

national road map for the smart

grid. The purpose of the test bed

is to determine the best smart

grid technologies and the most

viable business model. The test

bed should prove that the smart

grid can become the basis for a

low-carbon, green-growth strat-

egy. Therefore, this project dem-

onstrates Korea’s aspirations in

the area of green growth. The

Jeju test bed will become the

world’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 development

of new business models. Jeju will also serve as the foun-

dation for the commercialization and industrial export of

smart gr id technologies. It is expected to contribute greatly

to strengthening Korea’s position as a leader in the global

smart grid industry.

This project will be conducted with the participation

of 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 will

be invested between 2009 and 2013, and 12 consortia in

five areas—a total of 168 companies—will participate in

testing technologies and developing business models. The

three strategic directions stated in the vision and goals for

the Jeju initiative (see Figure 5) clearly reveal the green-

growth strategy embedded in this project. From the national

standpoint, it aims to raise energy efficiency and implement

green-energy infrastructure by building an ecofriendly

infrastructure that reduces CO2 emissions. From the indus-

trial standpoint, it seeks to secure a new growth engine that

will 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 Energy

Self-Sufficiency Ratio

2030

2030

2012

2012

Pilot Test 10% 30%

2020

2020

2020

2030

2030

15% 30%

2030

Consumer’s Right to Choose

Their 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.


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individual standpoint, it looks to enhance the quality of life

through the experience of and participation in a low-carbon,

green society. Moving forward, Korea plans to nurture the

smart grid as a new growth engine of the nation by ensuring

that the technologies and business models developed and

tested at Jeju are demonstrated and deployed not only on

the Korean peninsula but all over the world. In this way, the

most pressing concerns of our time, climate change and the

energy crisis, could be effectively alleviated.

Jeju’s Five Implementation AreasThe Jeju smart grid test bed includes all five areas of the

smart grid implementation from the national road map: a

smart power grid, smart buildings and homes, smart trans-

portation, smart renewable energy, and smart electricity

service. For the test bed’s smart power grid, Korea Elec-

tric Power Corporation (KEPCO) and 21 participating

companies investing a total of US$30 million will develop

smart 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 Energy

InfrastructureSecure New DrivingForces for Growth

Secure New Growth Engines thatwill Drice the Country’s

Development in the Age of

Green 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

CO2 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.


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technologies. In the smart buildings and homes (or smart

consumer) area, SK Telecom, KT, LG, KEPCO, and 101

participating 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 and

charging stations, vehicle-to-grid and ICT systems, and

additional service models. In the smart renewable energy

area, KEPCO, Hyundai, Posco, and 37 companies investing

a total of US$35 million will develop coordination and sta-

bilization technologies for renewable power with efficient

implementation across the power grid. Finally, Korea Power

Exchange, KEPCO, and six companies will spend US$15

million to develop real-time pricing, demand response, and

online consumer power-trading systems for smart electricity

service. Figure 6 provides an overview of the five Jeju test

bed 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 bed

has begun and will be finished in 2010. At the same time, leg-

islation—including the special act on support for the smart

grid—will be proposed in 2010 to begin building the basic

laws and regulations needed to secure long-term investment

funding and the provision of incentives. A variety of tests and

implementations of smart grid technologies in the Jeju smart

grid 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 that

will be completed by 2030.

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

world’s first all-inclusive smart grid test bed location, con-sists of one PR center and four exhibition halls. Spearheaded

by Korean conglomerates including KEPCO, LG, KT, and

POSCO, the Jeju facility gives visitors an opportunity to

fully 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 that

make up the test bed.

International Collaborative ActivitiesIn order to facilitate the successful implementation of its

smart 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 they

agreed to collaborate closely on work in the green-energy

sector, including the smart grid. The agreement represents a

strong foundation for cooperation between the two nations

on issues relating to clean and green energy. In addition to

smart grid technology, the agreement covers carbon capture

and storage and nuclear, methane hydrate, and geothermal

generation. 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


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,


–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 for

Efficient Energy Use

Lay the Foundation for

Expanded Distribution ofElectric Vehicles

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


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POSCO’s Smart RenewablesExperience Hall

LG Live Green

Experience Smart Green Services

That are Based on Smart HomeAppliances 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 and

Experience 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 New

and Renewable Energy as Well asStorage are Applied

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


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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) regarding

industry-focused collaborations on smart grid technology

and its implementation.

Members of the Major Economies Forum on Energyand Climate (MEF) sparked the second significant interna-

tional collaborative effort on behalf of the smart grid. On 14

December 2009, the Korean government took part in estab-

lishing an official MEF smart grid road map during a United

Nations meeting in Copenhagen. Along with Italy, Korea

had been designated a leading smart grid country at the G-8

summit talks of July 2009, and the two nations then col-

laborated closely to complete an international road map for

the smart grid. The MEF smart grid road map was reviewed

by the MEF member nations, and the final road map was

announced in December 2009. The key contents of the MEF

road map indicate that global collaborations on smart gridregulation and policy development are critical to the timely

deployment of smart grid technologies and business models

and are also necessary in order to effectively remove any

existing and potential barriers. The road map also empha-

sizes the importance of smart grid technical standards

development, human resource training and exchanges, and

cybersecurity and privacy. To follow up on the road map

and develop detailed collaboration agendas among member

nations, the establishment of a smart grid working group

under the aegis of the MEF has been proposed.

Finally, Korea and the U.S. state of Illinois have agreed to

collaborate 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 to

foster cooperation in the field of smart grid and green tech-

nology development by taking actions to deploy and imple-

ment smart grid business models and technologies developed

and verified by both parties; by exploring opportunities for

joint research and industrial development collaboration; by

developing strategic industrial and technological networks or

collaborative councils in smart grid technology development

and standardization that capitalize on trends and opportuni-

ties of mutual interest; by exploring opportunities to address

the newly emerging markets that include, but are not limited

to, demand response, electric vehicles, energy management

systems, and advanced battery research; and by fostering

information, technology, and human resource exchanges

among 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 the

cooperation. 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 technology

into global smart grid markets and to create new investments

and new jobs in the smart grid arena.

Future Directions

Korea has been pursuing implementation of the smart gridas one of its pioneering projects in the era of low-carbon

and green growth. From a domestic point of view, the smart

grid has been included in the five-year green-growth plan to

be implemented as a core national policy task. A national

road map for the smart grid has been established, an inno-

vative smart grid test bed is being built, and the steps that

follow are supposed to be undertaken in a timely manner

to successfully implement a “smart grid society” in Korea.

In addition, several significant international activities have

been undertaken for the past few years, including an agree-

ment on the smart grid with the DOE and GWA, smart grid

leadership at MEF and the establishment of an MEF smartgrid road map in collaboration with Italy, and cooperation

on global development and deployment of smart grid tech-

nology and business models with Illinois.

In 2010 and 2011, with the goal of early penetration and

adoption of the smart grid, the following tasks are to be initi-

ated or completed:

✔ enactment of special legislation on the establishment

of and support for the smart grid

✔ construction of a smart PR center and exhibition halls

✔ installation of a substantial amount of smart grid in-

frastructure

✔ diffusion of pilot smart grid equipment

✔ selection of smart grid demonstration cities

✔ development of the Korea-Illinois project

✔ standardization of smart grid technology.

From now on, Korea will be moving forward with concrete

steps toward smart grid development. In terms of policy and

practices, 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 of

successful business models, establishment of the necessary

infrastructure, and development of a legal and institutional

framework.

For Further ReadingMinistry of Knowledge Economy, “National smart grid

roadmap,” 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

Documents

A National Vision Smart Grids Korea (1)