The MOTIE worked out a measure of managing energy demand using ICT-based new technologies.
The Ministry of Trade, Industry and Energy (MOTIE) said on August 18 that it will implement in 2014 the ‘measure of creating new market for managing energy demand using ICT-based new technologies’ in an effort to turn the energy supply system into a demand management-oriented system.
Under the new measure, wind power generating companies will be able to receive renewable energy certificates (RECs) weighted by up to 200% depending on extent of their contribution to peak load when they transmit power after storing in energy storage systems (ESSs).
And new buildings with total floor space of over 10,000 square meters under construction and buildings and factories that consume more than 2,000TOE of energy will be strongly encouraged to install energy management systems (EMSs). Small and mid-sized companies will be supported with costs of installing EMSs by up to 50%.
To alleviate cooling load, the government will lower price of gas for district cooling service to the level of gas cooling and provide subsidies, while it will allow installation of gas cooling facilities in areas designated as group energy districts to form a competitive structure.
According to the government plan, companies will receive various incentives as such when they install ESSs.
Wind power generating companies that are connected with ESSs will be recognized with 40% of RECs during normal hours and 200% during peak times, and they will also be ensured with earnings when they use power during peak hours in the daytime after storing power in ESSs in the midnight.
Organizations and companies that heavily consume power will be mandated to install ESSs on phased basis.
Large industrial companies that use over 300MW of contract power and public organizations that consume over 1MW of contract power will be encouraged to reduce power by over 5% and install over 100kW ESSs, and they will be ruled by separate mandatory measures when they show insufficient progress.
Buildings with floor space larger than certain criteria will be strongly encouraged to install EMSs. The EMS is a system that can monitor in real time and remotely control consumption amount of various energies, including electric power, heat and gas.
The MOTIE will actively induce new buildings with total floor space of over 10,000 square meters under construction and buildings and factories that consume more than 2,000TOE of energy to install EMSs, while supporting financially weak small and mid-sized companies for costs of installing EMSs by up to 50%.
Also, it will add investment in EMSs to the list of investments eligible for exempting tax for energy-saving facilities. And it will improve the energy service company (ESCO) registration procedure to enable companies that already secured related technologies, such as IT and communication companies, to easily take part in energy-saving market.
In addition, the government will take a measure of sharing electric cooling loads with district cooling or gas cooling.
The government will create competitive structure by expanding buildings mandated to supply district cooling service in areas designated for group energy service from the current buildings with total floor space of over 3,000 square meters to those with total floor space of over 1,000 square meters, while allowing to install gas cooling systems in areas designated for group energy service.
And, it will expand buildings subject to install cooling facilities for controlling power load to all buildings with floor space of over certain level, and it will take other support measures, such as reduction of gas prices for district cooling, increase of subsidies for installing such facilities, and refund of oil import dues.
At the same time, the MOTIE will increase the amount of KEPCO’s annual investment in programs of improving energy efficiency by double of the current 66.7 billion won, and it will rearrange the electricity market so that power resources secured through ESSs and EMSs can be transacted on equal footing with power generated by power plants.
Source : e2news
