South Korean energy and battery infrastructure management

South Korea is managing various aspects of its energy and battery infrastructure, ranging from new capacity procurement to waste management and power distribution challenges.

The Korea Power Exchange (KPX) has launched a competitive bidding process to secure 1.18 GW of energy storage system (ESS) capacity, intended for completion by February 2029. This tender includes 1.1 GW for the mainland and 80 MW for Jeju Island, utilizing a scoring system that weighs price equally with non-price factors such as fire safety, grid-forming capability, and supply-chain resilience.

Concurrently, the nation faces difficulties regarding battery lifecycle management and power infrastructure for new industries. Data from the Ministry of Environment indicates a 65.9% recovery rate for decommissioned electric vehicle (EV) batteries subject to mandatory return, with over 2,300 batteries currently unaccounted for. Additionally, the Korea Electric Power Corporation (KEPCO) reports delays in power supply reviews for data centers, with 37% of reviews exceeding six months. These delays and the high concentration of power applications in metropolitan areas have raised concerns regarding environmental management and industrial competitiveness in the AI sector.