LS Electric targets Southeast Asian microgrid market

South Korea's LS Electric Co. will join hands with Thailand's second-largest company Siam Cement Group (SCG) to target the Southeast Asian market for microgrids, or systems enabling power self-sufficiency through an independent distribution source in a small area.

LS Electric on Wednesday said it signed a memorandum of understanding with SCG on cooperation in expanding microgrid operations in Thailand and Southeast Asia. The signing ceremony at the headquarters of Thailand's SSG (Siam Steel Gratings) Companies Group in Bangkok was attended by LS Electric Chief Executive Counselor Choi Soon-hong and Nithi Patarachoke, president of SCG's cement and building materials business.

SCG's main business lines are the CO2-emitting sectors of cement, construction, chemicals and packaging. The company's goal is to reduce greenhouse gas emissions to zero by 2050 and is aggressively conducting carbon-neutral management. In November last year, SCG representatives visited LS Electric's smart factory in Cheongju, North Chungcheong Province, to inspect smart manufacturing lines and construction of a factory energy management system (F-EMS) there.

At the SCG headquarters Bangsue Complex, LS Electric will install a microgrid energy management system (EMS) and later provide EMS-based microgrid solutions to SCG plants and affiliates.

LS Electric will supervise EMS, software required for EMS design and technical support for all programming. SCG will supply equipment necessary for EMS operation like solar power facilities and energy storage systems.

LS Electric plans to expand its microgrid operations in Southeast Asia through its cooperation with SCG.

"Microgrids simultaneously allow efficient energy management and CO2 reduction," Choi said.''

Write to Jeong-Soo Hwang at hjs@hankyung.com