Jeju Island implements decentralized energy production and storage models

Jeju Island is launching a demonstration of decentralized energy models designed to produce, store, and utilize energy at the village and household levels. Following its designation as a specialized decentralized energy zone, the province is implementing three core projects based on Virtual Power Plant (VPP) technology: Vehicle-to-Grid (V2G) integration, Energy Storage Systems (ESS), and Power-to-X (P2X) technologies that convert surplus electricity into hydrogen or heat.

The initiative aims to stabilize the power grid and expand renewable energy use. Under this specialized zone framework, energy providers can sell electricity directly to users without going through the central power market, potentially allowing for localized electricity pricing. Residents can benefit by using electric vehicle batteries to supply power during peak demand or by reducing costs through AI-based energy management systems.

Additionally, Jeju is transitioning its building energy performance improvement projects from a subsidy-based system to a private-investment-led model. This includes developing Energy Service Company (ESCO) models and Heat-as-a-Service (HaaS) subscription models to reduce the initial financial burden on residents. The province is also working on a standard model for zero-energy buildings and villages, integrating solar power, ESS, and heat pumps to accelerate carbon neutrality.