Seoul Energy Storage Power Supply Procurement EK

Why is South Korea launching the ESS central contract market auction?

The South Korean government, under the auspices of its carbon neutrality and energy transition goals, has launched the 2025 1st ESS Central Contract Market auction, marking an evolution in the country’s battery energy storage system strategy. South Korea has committed to increasing renewable energy capacity while maintaining grid stability.

Are South Korean companies investing in energy storage systems?

Less than a decade ago, South Korean companies held over half of the global energy storage system (ESS) market with the rushed promise of helping secure a more sustainable energy future. However, a string of ESS-related fires and a lack of infrastructure had dampened investments in this market.

How does ESS work in Korea?

The ESS market in Korea is designed as a centralized auction system the Korea Power Exchange (KPX) administers, where winning bidders enter into 15-year fixed-capacity contracts to supply standby grid support.

Will South Korea capture 30 percent of ESS market by 2036?

This was a heavy hit for the energy industry, but developments of safer technology and renewed state support have recently given new life to the domestic ESS market. According to South Korea’s “10th Basic Plan for Electricity Supply and Demand,” the government aims to capture over 30 percent of the global ESS market by 2036.