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The South Korea Energy Storage System market growth is driven primarily by the increasing deployment of renewable power sources owing to the nation’s basic plan for long-term electricity supply and demand (10th edition), which outlines ambitious targets for renewable energy, aiming for a 21.6% share by the year 2030 and a more substantial 30.6% by 2036.
Furthermore, increasing transmission deferral projects by KEPCO and MOITE to avoid frequency regulation and the well-established battery manufacturing prowess of the nation are increasing the demand for the South Korea Energy Storage System market.
However, factors such as recurring fire accidents pertaining to battery energy storage systems and the nation’s high import dependency for battery raw materials are restraining the market growth of energy storage systems in South Korea.
Energy storage systems consists of diverse methods and technologies employed to store energy, facilitating its later use to generate power. Energy is available in various forms such as chemical, gravitational, electricity, heat, and kinetic. Numerous methods and technologies exist for storing these varied energy forms. The choice of energy storage technology is commonly influenced by factors like the specific application, economic considerations, integration within the system, and the availability of resources.
In South Korea, various energy storage solutions are used, including pumped hydro, electrochemical batteries, and others. Depending on the energy storage technology and delivery characteristics, an ESS can serve many roles in the electricity market.
Over the last ten years, South Korea has undergone a significant transformation in its electricity generation landscape, marked by a remarkable rise in the contribution of renewable energy (RE). Starting at a modest 2.5% in 2012, the proportion of RE in the country's electricity generation mix soared to 8.9% by 2022, reflecting a substantial growth of 6.5 percent.
A pivotal factor behind this surge in RE electricity generation in South Korea has been the rapid expansion of solar photovoltaic (PV) technology. In 2012, each RE technology held a relatively equal share, each accounting for approximately 1 gigawatt (GW). However, solar PV has experienced rapid growth, reaching an impressive 21 GW over the past decade, while other RE technologies have remained comparatively modest, staying below the 2 GW threshold.
As energy storage systems effectively address the intermittency issue associated with renewables by storing excess renewable energy during surplus periods and releasing it during peak demand, thereby smoothing out fluctuations and ensuring a consistent electricity supply, the increasing deployment of renewable energy sources is driving the demand for energy storage systems.
In January 2023, South Korea, under a new government, unveiled its biennial master plan, officially known as the "Basic Plan for Long-Term Electricity Supply and Demand" (10th edition). This strategic blueprint sets ambitious targets for renewable energy, aiming for a 21.6% share by 2030 and a more substantial 30.6% by 2036.
To cope with the increasing proportion of renewable energy within the nation's power mix, South Korea made significant additions to its energy storage capacity. The forecast for renewable energy deployment in South Korea anticipates a gradual increase. As renewable sources continue to gain traction, there is an expected surge in the demand for energy storage systems, driven by the imperative to mitigate the inherent intermittency associated with renewable energy systems.
Electrochemical storage denotes an energy storage system wherein chemical energy is converted into electrical energy and vice versa through electrochemical reactions. This technology finds widespread application in batteries and various other energy storage devices. In electrochemical storage systems, electrical energy is stored in the form of chemical potential and can be released as needed by reversing the electrochemical process.
Notably, the electrochemical sector emerges as the most rapidly advancing form of storage technology in South Korea. In terms of battery storage system deployment, South Korea stands among the global leaders. By the end of 2022, the cumulative installed capacity of battery storage in the country had reached an impressive 4.1 gigawatts.
Key changes introduced by South Korea help the development of the energy storage systems market:
According to Blackridge Research, the outlook for the South Korean Energy Storage System Market remains strong in the medium term, and the market is expected to expand during the forecast period due to compelling economics, policies, and decarbonization commitments by various stakeholders.
Blackridge Research's South Korea Energy Storage System Market Outlook report consolidates the developments and builds a perspective on growth from the point of view of energy storage in its current and future role.
The report provides a comprehensive analysis of the historical development, the current state of the energy storage systems scenario, and its outlook.
The majority of the data in the report has been derived from multiple bottom-up and top-down analyses, as well as proprietary models, databases, and offerings—the Global Project Tracker Service—built from public and exclusive sources over the years.
(You can access a comprehensive list of both existing and upcoming battery ESS Projects across the globe, along with their current status, through our extensive Global Battery ESS Projects Database)
The insights include, but are not limited to, market data, ESS installation data and capacity additions data and forecast, government policies and regulations, project data (upcoming ESS projects, under-construction projects, and operating/commissioned solar power plants), company profiles of major players in the nation such as Samsung SDI Co. Ltd., LG Energy Solutions, etc., and competitive landscape analysis.
The market research report covers market dynamics, the growth potential of the ESS market, economic trends, and investment & financing scenarios in South Korea.
Further, the report looks at the current state and assesses the potential for the deployment of different types of energy storage systems.
Special attention is given to depicting the impact of the changes in government policies and the regulatory landscape.
1. Executive Summary
2. Research Scope and Methodology
3. Market Analysis
4. Industry Analysis
5. Market Segmentation & Forecast
6. Key Company Profiles
7. Competitive Landscape
8. Conclusions and Recommendations
List of Tables & Figures
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