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Korean English
Demand Response in South Korea

Demand Response

Earn a significant new revenue stream while supporting Korea’s most affordable path to decarbonization

What is Demand Response?

The charge towards Korea’s clean energy future has created the need for new forms of power capacity to ensure the reliability of the power grid while balancing the natural variability of renewable power. Demand Response is one of the best options for balancing renewables. The Korea Power Exchange (KPX) allows Virtual Power Plants (VPPs) to offer Demand Response through a market mechanism to ensure the stability and sustainability of the power grid. Our VPP allows energy users to offer Demand Response into the wholesale electricity market and to get paid for doing so.

Global experience

Enel X is a global Demand Response leader, present in 11 countries with more than 9.3 GW of flexible capacity managed.

Dedicated team

Our team of experts supports you to identify the best way your facility can support the grid without compromising your operations.

Smart platform

Advanced algorithms allow you to maximize revenue earned towards your bottom line, while maintaining the highest security standards.

Continuous assistance

Our Network Operations Center (NOC) is available 24-7-365, where all energy dispatches are actioned, managed and monitored in real time.

How does it work?

  1. How Demand Response works
  2. Demand Response Programs
1

Grid need

The Korea Power Exchange (KPX) balances the supply and demand of electricity in real-time. When demand is very high relative to the available supply, and close to reserve capacity of 6,500MW, the KPX will issue a ‘Demand Response Dispatch’ notice to aggregators, indicating that the power grid is under stress and there is a need for dispatchable capacity to support the system.
2

VPP is called

Enel X’s Virtual Power Plant (VPP) is called on, who aggregates its customer’s energy load or distributed energy assets made up of onsite equipment, backup generation assets, and battery energy storage solutions across businesses in Korea. Enel X offers its portfolio’s capacity to the KPX as a new source of power supply during these critical times.
3

Customer responds

Customers across Korea either reduce or modify energy usage when called on. This makes their power flexibility available to the KPX, by implementing power modulation plans.
4

Earn regular payments

Customers receive regular payments for both their availability to provide the service, and for when their power is provided to support the grid.  
1

Reliability Demand Response

To manage electricity supply in case of an emergency, load curtailment can be requested by the KPX if the reserve power level is in the “preparation” or “notice” stages (less than 6.5 GW of electricity demand reserve available), to reduce demand on the system.

 

With this program, businesses respond to the grid signal for 1 to 4 hours, with three to five mandatory events of curtailment per year.

2

Voluntary Demand Response

There are other Demand Response programs where participation is voluntary. These include Economic, Peak Demand and Fine-dust Demand Response, which can be done without a request for demand reduction by the KPX.

  • Economic: Businesses who participate in the Reliability program can also participate in voluntary bidding to compete with the generation price from power generation plants.
  • Peak: Businesses can curtail their load when power supply is expected to exceed the standard level of demand due to winter and summer peak usages and earn revenue.
  • Fine-dust: Businesses can curtail their load due to the emission of fine-dust caused by coal generation and be rewarded.
     

If your business is enrolled in Reliability Demand Response, you can opt-in to any Voluntary Demand Response program of your choice at any time of day, which we manage on your behalf.

Contact our team to learn which programs would best suit your business.

Power lines

Our offering

We extract businesses the most value from Demand Response, by selling it against utility assets in the KPX markets. We commit a dispatchable resource to the KPX in certain conditions, and get paid for being on stand-by and when utilized. While valuable, DR can be quite complex. The KPX requirements include: unique market registrations, dedicated meter connections, real-time market bidding and dispatch procedures, and detailed performance measurement and compliance rules. We approach market participation the same way we approach everything we do – with a mission to make it easy for businesses to access this new energy opportunity.

Our services

Our market-leading and comprehensive service offering includes:

DR evaluation

Technical and operational DR evaluation

Business case

Revenue planning and business case

Set up and enablement

Enablement

Metering and controls (at our expense)

Connection

Connection to our VPP platform

Compliance

Compliance

Market compliance and risk management

NOC Support

24/7 Network Operations Center bidding and dispatch management

Trading

Trading and co-optimisation of DR value

Why Enel X?

1

We are the global market leader

Businesses trust our proven track record as the market leader. Enel X manages the largest world’s largest C&I VPP, with over 9.3 GW of Demand Response resources. Our ambition is to grow this to 10.6 GW by 2023. More than 15,000 global enterprises are doing Demand Response with us across 11 countries today.
2

Demonstrated local leadership

Korea was an early mover within APAC in opening its power market to the participation of VPP and Demand Response resources. Today, Korea is Enel X's second largest Demand Response market in the world.
3

Global innovation, local execution

We bring our global leading platforms to local markets. We unlock new opportunities to decarbonize, digitalize and electrify your energy use in ways that will help grow your business.

 

We manage 98.3 MW of behind-the-meter Battery Energy Storage installed capacity globally today. We are also growing our world-leading electric mobility footprint, with 25,000 public charging points worldwide.

4

Future plans for electrification

The government is continuing to drive green reforms such as banning the registration of new combustion engine buses from 2024 onwards.

We see great opportunity for growth and value creation in the local market in the electrification of transportation and vehicle-to-grid technology, BESS, distributed energy generation, and more.

Intersection X

Discover Enel X

Learn more about our products and services

Solar PV

Distributed Energy Generation

Join the renewable energy transformation with our onsite Solar PV solution.

LEARN MORE
Electric Buses

Electric Buses

Debcarbonizing Korea's public transport with electric bus fleets and smart charging.

Learn More
DR Calculator

Demand Response Calculator

See how much revenue you can earn for reducing your energy consumption with Demand Response.

Start Simulation

Speak with an expert today to learn how Enel X can help you achieve your energy goals.

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