AVESS welcomes the Government of South Korea’s Energy Storage System (ESS) Industry Development Strategy

  • Reports
  • 10th November 2023

AVESS welcomes the release of the long-awaited energy storage system (ESS) policy from the Government of South Korea. Through the Korean Energy Storage System (ESS) Industry Development Strategy, South Korea hopes to achieve a 35% market share in the global ESS market by 2036.

Following the Strategy’s release by the Ministry of Trade, Industry and Energy (MOTIE) on 31 October 2023, South Korea will seek to establish a flexible power system – comprising various ESS technologies – to support the growth of the ESS sector.

Currently, South Korea ranks 4th globally – behind the United States and China – with a 14.8% market share. The global ESS market is projected to grow to US$615 billion by 2036, according to the Strategy.

In step with the 10th Basic Plan for Long-term Electricity Supply and Demand, the Government is seeking to deploy ~3.7 GW per annum of energy storage capacity from 2025 – with a focus on the southern province of Honam.

By 2026, Honam will require 1.4 GW of storage to stabilise the grid as a result of excess renewable generation. Such efforts are geared towards stimulating investment in South Korea’s domestic ESS market.

Maintaining South Korea’s competitive edge in lithium-ion (Li-ion) batteries is underscored by the Government in the Strategy – particularly in the three-dimensional cathode material sector. Additionally, the Government is seeking to grow lithium iron phosphate (LFP) battery production.

Moreover, the Government is planning to deploy a mix of energy storage technologies – with a focus on longer duration – including redox flow batteries, sodium-sulphur (NaS) batteries, compressed air energy storage, thermal storage, and pumped hydroelectric storage. This approach is expected to attract domestic investment and facilitate additional exports to support global expansion.

The Strategy also enables research into the diverse causes of Li-ion ESS fires and the development of approaches to enhance safety standards and management systems.

With a focus on technological innovation, safety improvements and investment promotion, South Korea is determined to expand its market share in the global ESS market, whilst boosting its domestic power system via a diversified energy storage portfolio.