LG signed a deal with the Korea Electric Power Corporation (KEPCO) to jointly promote transforming Jeju Island into a clean district with renewable energy technology.
The agreement comes as the government is pushing smart-grid technologies with state-run KEPCO. KEPCO has been pushing to install technologies that help boost energy efficiency, while cutting carbon emissions on Jeju.
In a statement, LG said it signed a memorandum of understanding (MOU) with KEPCO and the Jeju Special Self-Governing Province to construct an Eco-Town on the island. The three parties will launch a special purpose company (SPC) for the project.
The SPC will get 3 trillion won in initial funding; however, the allocation of the investment has yet to be fixed, said LG. The country’s trade ministry will also provide substantial financing for the project, though the group declined to specify how much.
The partnership is a part of a plan announced earlier to help make the island carbon free by 2030, LG spokesman Terry Taekyung said. He said the Eco-Town will be a test bed for the companies to learn how to work together on joint projects.
“LG is happy about the support by KEPCO to convert the island into a center of renewable energy, making the most of our competitiveness in batteries and energy storage products. The partnership with KEPCO will be the biggest project thus far to push green projects,” said the spokesman.
The Eco-Town project will be launched next year. Management of electricity will be controlled by LG-patented information technology. The parties plan to supply wind power to the village based on energy storage systems (ESS).
A 1.5-megatt per hour ESS will be installed in the town. LG said some 150 households will use wind power as their main energy source.
The ESS will store the electricity that will be saved during the night so that it can be used during the day. LED lighting sources, smart meters based on the Internet of Things (IoT) and CCTVs will also be installed in the town, said the statement.
LG has a plan to ultimately replace all gas powered vehicles on the island with ones powered by electricity.
Government officials say this will be a huge leap forward in making the country into a smart nation in power generation, distribution and consumption.
LG is the front-runner among its local rivals to work with the government’s plan for low carbon growth. The idea of making the power system smarter was first introduced in 2009.
Under the Korean Smart Grid Roadmap 2030, the country plans to expand smart grid test beds in metropolitan areas by 2020 and complete change the nation’s power grid by 2030.