South Korea Energy Storage Systems Market - Growth, Trends, and Forecast (Outlook to 2028)

The South Korea Energy Storage System market growth is driven primarily by the 5th renewable energy plan, which promises to deploy 84.4 gigawatts of renewable energy by 2034. In addition to increasing transmission deferral projects by KEPCO and MOITE to avoid frequency regulation, peak energy, environmental and energy mix targets, and growing demand for residential, commercial, and industrial rooftop solar solutions, and increasing non-fossil fuel crisis are increasing the demand for South Korea Energy Storage System market.

South Korea, officially known as the Republic of Korea, is situated in the southern part of the Korean peninsula, surrounded by the Yellow Sea in the west, the Sea of Japan in the east, and the Korean strait. South Korea has a population of 51.75 million, of which roughly half live in the Seoul Capital Area, the fifth most significant metropolis in the world. Other major cities include Busan, Daegu, and Incheon.

Energy Storage Systems are the methods and technologies used to store energy for later use to supply power. Energy is available in various forms, including chemical, gravitational, electricity, heat, and kinetic. There are several methods and technologies for storing different forms of energy. The selection of energy storage technology is typically affected by the application, economics, integration within the system, and availability of resources.

In South Korea, various energy storage solutions, such as pumped hydro, and electrochemical batteries, are used. Depending on the energy storage technology and delivery characteristics, an ESS can serve many roles in an electricity market.

Key Changes introduced by South Korea help the development of the Energy Storage Systems Market:

• The Korean renewable energy 2030 plan, aiming to enter the low carbon economy society, plans to deploy 84.4 GW of renewable energy facilities by 2034 to create an ecosystem allowing renewable energy to serve as the main energy source. The final goal of this plan is to make renewable energy account for 25.8 percent of national power generation through facility deployment in a longer timeframe.
• In December 2021, South Korea targeted to reduce emissions by 40% below 2018 levels by 2030. This measure would help South Korea achieve climate neutrality by 2050.
• In 2018, the revised new electricity act provided licensing procedures for small-scale electricity brokerages and electric vehicle charging businesses. Small-scale electricity brokerage businesses are authorized to collect and trade electricity produced from renewable sources, stored in battery energy storage devices or electric vehicles, and traded at the Korea Electric Power Exchange (KPX). 
• In 2018, New Renewable Portfolio standards and Feed-in tariffs for new solar rooftops increased the demand for energy storage systems in industries, commercial and residential.

South Korea Pumped Hydro Energy Storage System:

• Although South Korea has a few rivers were flowing west and south, which seem advantageous to hydropower generation. The hydropower capacity comprises 1,789 MW of pure hydropower and a further 4,700 MW of pumped storage as of 2021.
• Most of the hydropower plants in Korea were built about 40 to 50 years ago and need modernization work to improve their performance, efficiency, and output.
• As per new pumped storage power plants, Korea Hydro and Nuclear Power (KHNP) has chosen three areas for development: Youngdong (500 MW), Hongcheon (600 MW), and Pocheon (750 MW). According to government plans, KHNP will progress construction, and completion is due in 2031.

South Korea Lithium ion Battery Energy Storage System:

• Korea's battery energy storage industries experienced remarkable growth, with conglomerate Korean companies LG Chem, Samsung SDI, and SK Group accounting for more than 80% of the total lithium-ion battery (hereinafter, LiB) Energy Storage System (ESS) in the Korean market.
• Most of Korea's lithium-ion battery energy storage systems have been built in the last ten years. The companies and the Korean government are supporting R&D on batteries to improve their performance, efficiency, safety, and output.

South Korea Energy Storage System Market Opportunities:

• Growing rooftop market in major cities such as Seoul and others, increasing the demand for residential energy storage systems.
• The demand for flow batteries is growing in transmission deferral systems and commercial applications.
• A growing number of P2G projects are being pursued in Korea to improve the hydrogen economy.

Some of the South Korea Energy Storage System Market Challenges:

• High Capital requirement for installation of battery energy storage systems.
• Technological challenges such as overheating and low lifetime.

Some of the South Korea Energy Storage System Market Restraints:

• In 2002, increasing battery-based fire accidents across the South Korean government proposed battery safety policies.

According to Blackridge Research, the outlook for the South Korean Energy Storage System Market remains strong in the medium term, and the market is expected to expand during the forecast period due to compelling economics, policies, and decarbonization commitments by various stakeholders.

Blackridge Research's South Korea Energy Storage System Market Outlook report consolidates the developments and builds a perspective on growth from the point of view of energy storage in its current and future role.

The report provides a comprehensive analysis of the historical development, the current state of the energy storage systems scenario, and its outlook.

The majority of data in the report have been derived from multiple bottom-up and top-down analyses, as well as proprietary models, databases, and offerings - Solar Intelligence Hub and Global Project Tracker Service built from public and exclusive sources over the years.

The insights include but are not limited to the market data, energy storage systems installation data, and capacity additions data and forecast, government policies and regulations, project data (upcoming energy storage system projects, under-construction projects, and operating/commissioned energy storage systems), company profiles of major players, and competitive landscape analysis.

The market research report covers market dynamics, growth potential of the energy storage systems market and battery energy storage systems market, economic trends, and investment & financing scenario in South Korea.

Further, the report looks at the current state and assesses the potential for the deployment of residential and non-residential energy storage systems.

Special attention is given to depicting the impact of the ongoing COVID-19 pandemic and changes in the government policies and regulatory landscape.