KEPCO JEJU Smart Grid Projects IL-KEUN SONG

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Frankfurt (Germany), 6-9 June 2011  History 1898 : The first electric power company was founded 1961 : Three regional electric companies merged into a national electric Power company(KECO) 1982 : KECO was renamed as KEPCO, a wholly goverment-owned 2001 : KEPCO’s generation unit was spun off into 6 subsidiaries  As of 2010 Number of Customers : 223,488,239 Sales(kWh) : 434,160,228, st Ranked in Utilities(Fortune) Asset(107.6 Billion USD, ranked 5 st in KOREA) Credit Rating(A2 : Moody’s, A : S&P) Ⅰ. KEPCO in Brief Song– KR – RT.4c

Frankfurt (Germany), 6-9 June 2011  JEJU SG Pilot Projects For the Technical Verification of SG, and Business Model Development  SG Road Map Ⅱ. JEJU SG Pilot Projects Foundation for Low-Carbon Green Growth based on Smart Grid Field Test in JEJU 1 st Phase(2013) Application in Wide Area (SG City Project) 2 nd Phase(~2020) Nationwide Application 3 rd Phase(~2030) VISION PHASE Main 5 Sectors Main 5 Sectors Smart Power Grid Smart Place Smart Transportation Smart Renewable Smart Elec. Service Song– KR – RT.4c

Frankfurt (Germany), 6-9 June 2011  Smart Power Grid Ⅱ. JEJU SG Pilot Projects New Intelligent Power Grid Management System with “Smart” Functions based on IT technology Labor Cost and Time Saving, Reliability & Efficiency Improvement Copper Wire Mosaic Panel 100 Mbps Fiber Ethernet IEC IED Relay Digital Relay Contents 1 st ( ~ ) : Device installation 2 nd ~4 th ( ~ ) : Device test, Operation and Assessment Schedule Two 154kV Substations and Feeders will be digitalized based on IEC Fault Prediction System with Intelligent sensors Intelligent Distribution Management System Targets Benefits Song– KR – RT.4c

Frankfurt (Germany), 6-9 June 2011  Smart Place Ⅱ. JEJU SG Pilot Projects Load Management by Demand Respond under AMI environment Load Leveling, Energy Efficiency Improvement, Cutting Electric Charge Targets Benefits Smart Meters / MDMS Integrated Metering System /Energy Portal Two-way Power Exchange / Other Services 1 st ( ~2010.5): Planning & Field Survey 2 nd ( ~ ): Service Models & Solutions 3 rd ( ~ ): Field Test 4 th ( ~ ): Conclusion Schedule Contents ※ MDMS – Metering Data Management System Smart Home Home Server Smart Thermostat Smart Meter Intelligent Switch Center Smart Panel Smart Building SUN Green Energy MDMS Service DR Infra EV, PHEV Smart Appliance Energy Display Song– KR – RT.4c

Frankfurt (Germany), 6-9 June 2011  Smart Transportation Ⅱ. JEJU SG Pilot Projects Preparation for EV’s Charging Infrastructure Contribution for EV’s fast spread, Power Sales Increment Targets Benefits Schedule * CIM : Customer Information Management Charging Infra. CIM System Distribution Network Distribution Network Operation System Operation System EVs Charging Station Charging Station Charging Stand Meter Monitoring & Charging Control Monitoring & Charging Control Remote Control Remote Control Network Protection Customer Management & Payment Customer Management & Payment Metering, Billing & Charging 1 st ( ~ ): Designing 2 nd ( ~ ): Infra. Construction 3 rd ( ~ ): EV operation & Test 4 th ( ~ ): Assessment Various charging stands by case - Quick, Slow, Inductive, High Capacity Storage Operation System for Charging Station / / Information Security / Other services Standardization of Charging Interface Contents Song– KR – RT.4c

Frankfurt (Germany), 6-9 June 2011  Smart Renewable Ⅱ. JEJU SG Pilot Projects Stabilization of unstable power from renewable energy sources DG’s stable interconnection with Network Targets Benefits 4 Types of System Configurations 3 Types of Power Stabilization Mode, including control Algorithm 1 st ( ~ ): Designing 2 nd ( ~ ): Device Production 3 rd ( ~ ): Field Test 4 th ( ~ ): Conclusion Schedule Contents SW STATCOM, AVC STATCOM, AVC Total Operation Center (TOC) Renewable Energy Renewable Energy Power Grid PCS EMS BMS Battery Load Bank Load Bank Song– KR – RT.4c

Frankfurt (Germany), 6-9 June 2011  Smart Electric Service Ⅱ. JEJU SG Pilot Projects Support of Power Trade on RTP market, and Integrated Operation Center Business platform Development in the future Targets Benefits 1 st ( ~ ): Designing 2 nd ( ~ ): Installation & Pilot test 3 rd ~4 th ( ~ ): Integrated Field Test, Assessment Virtual Power Market Operation System (EMS) Real-time Tariff Test, Energy Information Portal Schedule Contents Song– KR – RT.4c

Frankfurt (Germany), 6-9 June 2011  Project Goal Development & Field Test of Power Stabilization Technology and Business Models in JEJU-Island  Project Outline Project Name : Smart Renewable Test-bed Project Duration / Budget : ~ (42month) Contents  Generation Power Stababilization of Resource Source  Development of Business Models, and Institutional Strategy to spread Smart Renewable Technology Ⅲ. Smart Renewable Test-bed Project Song– KR – RT.4c

Frankfurt (Germany), 6-9 June 2011  System Configuration Ⅲ. Smart Renewable Test-bed Project  EMS [Energy Management System] ▪ PCS [Power Conditioning System]  AVC : Automatic Var Compensator ▪ BMS[Battery Management System]  STATCOM [STATic synchronous COMpensator] Smoothing Constant Power Energy Shifting STATCOM, AVC TOC(Total Operation Center) Renewable Power Renewable Power Power Grid PCS BMS Battery SW EMS Song– KR – RT.4c

Frankfurt (Germany), 6-9 June 2011  Air View of SR Test Bed Ⅲ. Smart Renewable Test-bed Project No 12 (750 ㎾, A Type) No 12 (750 ㎾, A Type) Small Hydro (60 ㎾ ) Small Hydro (60 ㎾ ) SR Operation Center Jeju Line KEPCO Line Communication No 14 (660 ㎾, B type) No 14 (660 ㎾, B type) G G Small WT (100 ㎾, C1 type) Small WT (100 ㎾, C1 type) Small PV (100 ㎾, C2 type) Small PV (100 ㎾, C2 type) Song– KR – RT.4c

Frankfurt (Germany), 6-9 June 2011  Business Model Ⅲ. Smart Renewable Test-bed Project Type A [Energy Shifting] Type A [Energy Shifting] Type B [Power Smoothing] Type B [Power Smoothing] Type C [PQ Compensation] Type C [PQ Compensation] Type D [Intentional Islanding] Type D [Intentional Islanding] Stores energy in low load time, and Discharges in peak time by using Large capacity storage Makes the generation power smooth by small capacity storage Improves the PQ at PCC(Point of Common Connect); Voltage variation reduction, PQ improvement, etc Supplies power to customers in isolated grid when in case of KEPCO lines’ outage Song– KR – RT.4c

Frankfurt (Germany), 6-9 June 2011  Future Plans Ⅲ. Smart Renewable Test-bed Project SR Equipment Development SR Demonstration SR Biz Model Equipment Upgrade Standard & Patent Test being linked Analysis & BM Development BM Evaluation Long Term Demonstration Shor t Term Demonstration Demonstration Scenario Song– KR – RT.4c

Frankfurt (Germany), 6-9 June 2011  Connection Capacity (As-is) Ⅳ. Distributed Resource Interconnection Rules  Technical Criteria (To-be) “DG can be interconnected to the grid if they meet the technical criteria” “DG can not be interconnected to the grid if their capacity over the capacity rules” Renewable Energy Renewable Energy Power Smoothing PQ Compensation SR have no technical barrier for connection with grid (Smart Renewable Functions) Song– KR – RT.4c

Frankfurt (Germany), 6-9 June 2011  Exising rule and policy Ⅴ. Policy for DG Positive Impacts on Grid  Changed rule and policy “The changed rules and policy lead to the positive impacts of DG” “The Capacity Rules intend to alleviate the negative impacts of DG” Renewable Energy Renewable Energy Power Smoothing PQ Compensation SR can provide the ancillary service and also participate in the electric market (Smart Renewable Functions) negative impacts of DG The existing rules and policy focus on the negative impacts of DG ☞ limit the connection capacity of DG ☞ hinder R&D activity and application of new technologies negative impacts of DG The existing rules and policy focus on the negative impacts of DG ☞ limit the connection capacity of DG ☞ hinder R&D activity and application of new technologies The changed rule intend to drive positive impacts of DG the positive impacts of DG ☞ Enlarge the connection capacity ☞ Utility have help form DG and also DG create new benefits The changed rule intend to drive positive impacts of DG the positive impacts of DG ☞ Enlarge the connection capacity ☞ Utility have help form DG and also DG create new benefits Energy Shifting Intentional Islanding Song– KR – RT.4c

Frankfurt (Germany), 6-9 June 2011 IL-KEUN SONG, Team Leader/Chief Researcher Transmission & Distribution Lab. KEPCO RI