1 / 23

Korean Electricity Market#7. Reference - KEPCO FR ESS

World’s Largest ESS Project for Frequency Regulation

Actual Image

Project Name KEPCO Frequency Regulation ESS

ApplicationsFast Frequency Regulation for KEPCO Main Grid using LiB Battery ESS

Capacity PCS 8MW / Battery 7.6MWh

Period ’14. 9 ~ ‘15. 6 (10 months)

Role of LG CNS

- Project Management

- EPC

- EMS

Overview

2 / 23

Korean Electricity Market#7. Reference - KEPCO FR ESS

Total 500MW ESS installation for FR in substations with GF and AGC functionalities

2014(Pilot)

2015(Fixed)

2016(Planned) Total

Capacity 52MW

(29MWh)200MW 250MW 500MW

Budget €43M €208M €283M €535M

• Pilot in the 2 Substation (345kV)

• Implementation GF & AGC

• Real connection to main grid

Project Roadmap 1st Year Project

• 3 Year Project for 500MW ESS Shortened from 4 to 3 years by successful 1st

year pilot project

• Replacing 45% of FR Resource

3 / 23

Korean Electricity Market#7. Reference - KEPCO FR ESS

As a result of 1st year pilot project, ESS proved superior performance than conventional power plant

• Better Efficiency

Battery Capacity Efficiency:

92%

Duty Cycle Efficiency:

over 98%

• Superior Response Time

Guideline of PCS Response Time: 200msec

Rated Output Delay Time(from 0 to 1MW for PCS): 15.6msec

Specified Output Delay Time by Control Algorithm: 110msec

• Overall FR Efficiency of ESS

Performance of single 500MW BESS is equivalent to 26 individual 500MW Thermal Power Plant

4 / 23

Korean Electricity Market#7. Reference - KEPCO FR ESS

KEPCO is expecting €250M of annual benefit

PowerPlant

PowerPlant

Transmission

Substation

Retailer

IndustrialCustomer

GeneralCustomer

ResidentialCustomer

…

ElectricityMarket

Distribution

: Electricity Flow

: Money Flow

[Territory of KEPCO]

5 / 23

Korean Electricity Market#7. Reference - KEPCO FR ESS

KEPCO is expecting €250M of annual benefit

PowerPlant

PowerPlant

Transmission

Substation

Retailer

IndustrialCustomer

GeneralCustomer

ResidentialCustomer

…

ElectricityMarket

Distribution

: Electricity Flow

: Money Flow

[Territory of KEPCO]

6 / 23

Korean Electricity Market#7. Reference - KEPCO FR ESS

KEPCO is expecting €250M of annual benefit

PowerPlant

PowerPlant

Transmission

Substation

Retailer

IndustrialCustomer

GeneralCustomer

ResidentialCustomer

…

ElectricityMarket

Distribution

: Electricity Flow

: Money Flow

(+) T&D Deferral(+) Grid Operation Stability

(+) Plant Efficiency/Lifetime(+) Peaking Plant Deferral

(+) Decrease of Peak Mgmt.

Effects for Grid[Territory of KEPCO]

7 / 23

Korean Electricity Market#7. Reference - KEPCO FR ESS

KEPCO is expecting €250M of annual benefit

PowerPlant

PowerPlant

Transmission

Substation

Retailer

IndustrialCustomer

GeneralCustomer

ResidentialCustomer

…

ElectricityMarket

Distribution

: Electricity Flow

: Money Flow

(+) T&D Deferral(+) Grid Operation Stability

(+) Plant Efficiency/Lifetime(+) Peaking Plant Deferral

(+) Decrease of Peak Mgmt.

Effects for Grid

(+) Decrease of Clearing Price

(+) Lower FR Purchase(+) Decrease of CON/COFF

(-) Lower SMP Revenue(+) Increase of SEP(-) Decrease of CON/COFF(+) More Payment for Fast FR(+) Capacity Payment for ESS

Effects for Market[Territory of KEPCO]