South Korea to invest $223 million in next - generation distributed grid

pv-magazine.com · Feb 23, 2026 · Collected from GDELT

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The South Korean government has announced plans to invest KRW 321 billion ($222.6 million) in 2026 to upgrade regional distribution networks, deploy 85 energy storage systems, and expand solar integration while piloting microgrids and market reforms. February 23, 2026 South Korea unveiled its next-generation distributed grid strategy at a recent discussion forum in Seoul, with plans to expand distributed generation and support region-specific electricity production and consumption. The Ministry of Climate, Energy and Environment said in an online statement it will begin regional distribution network upgrades to accommodate variable renewable energy and reduce congestion, deploying 85 energy storage systems by 2030 – starting with 20 units in 2026 – to enable an estimated 485 MW of additional solar connections, while small-scale storage installations will also support “sunlight income villages.” Microgrids will be developed for medium and small loads, such as industrial complexes and university districts, to flatten demand and increase distribution network utilization. The authorities also aim to reform connection rules, expanding conditional renewable energy capacity to 16 MW per distribution line. Korea Electric Power Corp. (Kepco) will act as distribution system operator, using an advanced distribution management system to forecast solar output and dynamically control storage charging to prevent overloads. The ministry claimed that a non-wires alternatives compensation scheme will reward storage operators when their systems replace the need for grid construction, beginning with a pilot in Jeju. The government also noted that market reforms will start in Jeju, including a power demand bidding system that shifts consumption to uses such as power-to-heat and electric vehicle charging when renewable generation lowers prices. A renewable energy bidding system tested in Jeju will be introduced on the mainland at some point this year, according to the ministry. It said global power grid investment could reach $372 billion by 2030 and outlined plans for a domestic industrial ecosystem for next-generation distributed grids. Universities, public power companies and private firms will collaborate on the K-Grid talent and startup cluster, including a testbed for technology demonstration, and the government will host the K-Grid Future Festival to support investment and research on virtual testbeds and AI-based multi-microgrid platforms. Two cooperation agreements were signed at the forum, involving the ministry, Korea Energy Agency, Kepco and Korea Power Exchange to enhance information sharing and storage system operations, as well as a separate deal with four universities to support workforce development. Project operators for distribution network storage and microgrid installations are expected to be selected in the second quarter following a first-quarter call for proposals. The government’s distributed-grid roadmap sits within the broader, ongoing transformation of South Korea’s electricity system, where energy storage, digitalization and domestic manufacturing capacity are emerging as strategic pillars. Kepco’s completion of a 978 MW/889 MWh grid‑stabilization battery system in Miryang, South Korea, in 2024 – then purportedly the largest in Asia – underscores how rapidly large-scale storage is being deployed to manage renewable variability and reduce system stress. Supply-chain coordination has also deepened in recent months. In late 2025, for example, seven South Korean inverter manufacturers, including OCI Power, Dass Tech, Ecos and Dongyang E&P, set up a new industry association to address cybersecurity risks, harmonize standards and reinforce domestic production. This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com. Popular content