LS Electric CEO and Chairman Koo Ja-kyun, left, shakes hands with CNCITY Energy CEO Hwang In-kyu at LS Yongsan Tower in Seoul, Monday, after signing a memorandum of understanding to jointly develop and propagate decentralized power distribution systems in the country. Courtesy of LS Electric
Korea's major power distribution technology developer LS Electric has agreed with CNCITY Energy to jointly spur decentralized power distribution in the country by introducing a local-based power distribution system.
LS Electric and CNCITY, a local provider of heat, electricity and natural gas, signed the partnership on Monday.
The new partnership benefits both companies, according to LS Electric. CNCITY can propose new energy business models using LS Electric's renewable energy-based power distribution technologies that LS claims are the country's best. LS Electric, with CNCITY, can begin testing its new technologies for local-based power distribution to deliver electricity more efficiently to remote regions far from the country's major power grids.
With the new partnership, the two companies have agreed to build a master plan to maximize profits out of a new operating system for local-based power distribution networks. They have also agreed to search and designate special regions where the new power distribution methods will be developed further.
The partnership came as the country's Special Act on the Promotion of Distributed Energy takes effect next June to overcome current difficulties with the centralized power distribution system. The system in use delivers electricity generated from the country's key power plants over power lines to distant regions in need of electricity. There are, however, problems: costs in constructing power lines and getting consent for such construction from local residents who may object to having new power lines hanging over their own communities.
Local-based power distribution is expected to mitigate such problems by introducing smaller energy-generation facilities in provincial regions and distributing electricity produced there to neighborhoods that are located far from the country's main grids. The new law is to spur the decentralized power distribution system's use in practice and thereby stabilize power supply throughout provincial regions and save power line construction costs.
LS Electric CEO and Chairman Koo Ja-kyun and CNCITY Energy CEO Hwang In-kyu on Monday signed a memorandum of understanding to ink the partnership at LS Electric's Seoul office in LS Yongsan Tower in central Seoul.
Koo said following the signing that LS, with the new partnership, will develop smart power distribution technologies for local-based energy distribution projects and promote the technologies overseas as well.
LS said that with the partnership, the two companies will develop technologies to support local-based power distribution including microgrids, energy storage system (ESS) for power generation and distribution, factory energy management systems (FEMS) and zero-energy buildings.
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