[Hwankyung Ilbo] This is the era of "energy decentralization. Until now, non-metropolitan areas have been constrained in their growth by large power plants, generating electricity and sending it to the metropolitan areas to help domestic industrialization and informatization.
However, it has been pointed out that the growth of non-metropolitan areas has stagnated due to the unilateralism of the metropolitan area after the high growth. Against this backdrop, it has been six months since the 21st National Assembly enacted the 'Special Act to Revitalize Distributed Energy'.
Distributed energy aims to empower non-metropolitan areas as energy producers and to match energy production with demand. It also aims to promote the growth of cities near power plants that have suffered by providing clear price signals through a regional electricity price differential system.
The Special Law on Distributed Energy is scheduled to be implemented in June, but the related enforcement decrees and implementing rules recently proposed by the government are considered insufficient for the purpose of enacting the law.
In particular, the "regional electricity price differential system" stipulated in the law is a major concern for local governments. It is pointed out that there is no provision for this in the draft decree and implementing rules.
It is necessary to prepare specific support measures and propose plans to activate distributed energy by major points, such as supporting distributed energy specialized areas, calculating distributed benefits, and Virtual Power Plants (VPP).
In addition, there are opinions that it is urgent to support the commercialization and technology development of new energy technologies such as Small Modular Reactors (SMR) and Demand Response (DR) as a priority for institutional support to revitalize related industries.
Challenges to stable energy supply are increasing in the domestic electricity market. Deepening regional imbalances in electricity supply and demand, such as the concentration of renewable energy, data centers in the Seoul metropolitan area, and increased transmission congestion due to grid constraints on the east and west coasts, are increasing the need to strengthen regional signals in prices.
The introduction of the real-time grid market in September 2022 reflects transmission contracts in the price, but the onshore region maintains a single price system, which does not provide regional price signals and leads to an increase in SMP (system limit price) and market inefficiency.
Delays in the construction of the East Coast-Capital Region transmission line and the lack of a linkage transmission line between Honam, Chungcheong, and the Capital Region have limited the transmission of power generation, which may hinder the power supply for new investments in high-tech industries such as semiconductors and bio.
In addition, due to the low acceptability of residents and local governments and the lack of a conflict management system, delays have occurred in the early stages of grid construction and conflicts between local governments have escalated. In addition, the support system for power grid construction has been stagnant since 2014, and the gap between the public and the government is growing.
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