LG Energy Solution to collaborate on Jeju offshore wind power pilot project

LG Energy Solution Ltd. said on Wednesday that its subsidiary AVEL had signed an agreement with Korea South-East Power Co. (KOEN) and Tamra Offshore Wind Power to participate in a pilot project to improve the power market system using offshore wind energy and energy storage systems (ESS).

Under the agreement, the three companies will commence a renewable energy generation volume prediction and management pilot project by integrating offshore wind power generation facilities and ESS.

AVEL will operate the ESS using energy aggregation (EA) technology, while Korea South-East Power and Tamra Offshore Wind Power will provide expertise in the prediction system and wind power generation operating data, respectively.

AVEL's CEO Kim Hyun-tae stated that accurate prediction and efficient utilization and management of offshore wind energy generation will contribute to stabilizing the domestic electricity market. AVEL is also planning to participate in the Renewable Energy Bidding System based on the current agreement.

The bidding system, to be launched by the end of this year, will allow renewable energy operators with a certain level of capacity (over 1 MW) to participate in the electric power market bidding process, similar to conventional power generators like thermal and nuclear power. The system is expected to expand nationwide, starting with Jeju Province.

AVEL, which was established as an in-house subsidiary of LG Energy Solution in October last year, had previously signed a cooperation agreement with the Jeju Energy Corporation to stabilize the power system and explore new energy businesses in Jeju Province.

Write to Ik-Hwan Kim at lovepen@hankyung.com