Commercialization of smart grid is expected to create new service markets.
The government will push forward programs of commercializing smart grid business.
The Ministry of Trade, Industry and Energy (MOTIE, Minister: Yoon Sang-jick) said on August 22 that it will expand commercial smart grid business led by private companies based on technologies and business models verified through the ‘smart grid demonstration project’ conducted in Jeju.
The MOTIE plans to set up bases for expanding smart grids by private companies by applying technologies and business models verified through the demonstration project.
With participation of some 170 companies, the government built the world’s largest smart grid demonstration complex in Jeju, and completed the demonstration project in May this year, achieving affirmative outcomes of verifying core technologies and developing business models.
Among affirmative outcomes, demand response service, stabilization of renewable energy outputs, and electric vehicle charging and renting service are evaluated as business models that can be immediately applied to programs of expanding smart grids.
On the other hand, some observers evaluate that outcomes of the demonstration project are insufficient to commercialize in full scale and attract private investments due to regional characteristics, absence of architecture (general drawing) and limitation in verifying systems.
And the government will push forward the smart grid expansion program, placing focus on practical and performance-oriented business by fully applying outcomes of the demonstration project, while institutionally supplementing exposed problems.
To this end, the MOTIE will focus on selecting business models that are most suitable for expanding smart grids, instead of selecting regions for such business. And it will ensure compatibility between smart equipments and systems by providing basic guideline for systems to be installed for expanding smart grids, while maximizing business effects by supplementing related institutions and regulations, and then applying them to expansion programs with priority.
The briefing session held on August 22 was attended by over 150 representatives from companies, local governments and organizations. At the meeting, an official at the MOTIE said that the smart grid expansion program will be pushed forward as announced by MOTIE Minister Yoon Sang-jick on August 12 at a policy meeting. The program will be implemented in 2015 by conducting feasibility study and allocating its budget in the first half of 2014 after selecting 3~4 candidate companies by October this year.
Source : todayenergy