Carbon Free Islands in South Korea - · PDF file17th Oct. 2015 Carbon Free Islands in South...

17th Oct. 2015

Carbon Free Islands in South Korea

Dong Wook(Dylan) Kim

Senior Manager

LG CNS

I. Activities and Policies in Korea

II. Case Studies

1) Jeju Island

2) Ulleung Island

3) Jo & Geomun Islands

III. Cooperation of Malaysian-Korean Government

IV. Closing

Ⅰ. Activities and Policies in Korea

3


Major Projects for the Carbon Free Island

: Many islands in Korea are now adopting eco-friendly and economical electricity system

• The biggest island in Korea

• From smart grid test-bed to commercialization

• Needs green tourism

• Benchmarking target for Langkawi island 1

2

3

1 2

3

• Government-driven 100% renewable energy system

• Diesel-renewables hybrid system

The first-phase carbon free islands such as Gapa and Gasa islands in Korea are omitted because they are not commercial but small pilot system.

4


8 New Energy Industries of Korean Government (MOTIE)

ESS: Energy Storage System, EMS: Energy Management System

5


Concept of Energy Independent Island with ESS

Conceptual Image of Energy Independent Island

DieselGenerator

Business Model and Consideration

Ⅱ. Case Studies

1) Jeju Island

2) Ulleung Island

3) Jo & Geomun Islands

7

Ⅱ. Case Studies 1) Jeju Island

Current Conditions of Jeju Island

Gapa Carbon Free Island

Dongkwangri Solar Village

Haengwonri Wind Farm

8


The beginning : Jeju Smart Grid Test-Bed

Area : 186㎢ (1/10 of Jeju Island), Population : 15,000, Household : 6,250 unit

Gujwa-eup

9


Vision and Goals for the Carbon Free Island

VISION

Smart Grid Test Bed, Gapa-do Carbon Free Island

Completion of Pilot Model of Carbon Free Island (2014)

To Transform Jeju into a Global Model of Green Growth

Job creation and Increased Income

Promotion of High Value-added Industry synchronized with

Clean Environment and High Technology

rd Phase

Construction of Infrastructure for Carbon Free Island (2020)

Wind Energy, Smart Grid, Electric Vehicles

Completion of Carbon Free Island (2030)

Global Green Growth City Free from Fossil Fuels

nd Phase

st Phase

10


Main Plan for the Carbon Free Island

1GW of renewable energy by 2020⇒ 50% replacement

1.8GW of renewable energy by 2030⇒ 100% replacement

11


Expected Effects from the Carbon Free Island Plan

12


•

•

•

•

•

•

•

•

•

“Global Eco-Platform Jeju Project“ as the Solution for “Carbon Free Island Jeju”

13


Concept Image of Global Eco-Platform Jeju

EV Infra

Smart Home

EV

ESS Center

Smart Building

Fuel Cell

Onshore Wind

Offshore WindOnshore Wind

Solar Power

New Grid

Integrated

Operation Center

14


Activity in Each Phase for Global Eco-Platform Jeju

15


Concept Picture for 1st phase

16


3-Party MOU for Global Eco-Platform Jeju (8th Oct. 2015)

New Energy Solution Local Government State-owned Utility

17

Ⅱ. Case Studies 2) Ulleung Island

The World’s Largest 100% Renewables-based Microgrid is Under Construction

Wind Farm

Geothermal

Plant

Solar Plant

Small Hydro

Diesel Plant #1

Diesel

Plant #2

Microgrid

Operation Center

ESS

Fuel Cell &

LNG Storage

Current

- Mostly Diesel

Phase 1 (~2017)

- 30% from Renewables

Phase 2 (~2020)

- Zero Diesel

• Microgrid Operation System

• ESS: 20MWh

• Renewables: Wind 8MW,

Solar 1MW

• Two Diesel Plants: 10.5MW,

8MW

• One Small Hydro: 0.7MW

• ESS: 36.5MWh

• Renewables: Fuel Cell 23MW,

Geothermal 4MW

• Smart Meters, EVs

[Ulleung Island]

Residents: 10,000+

Max. Peak: 11MW

EVs (Car Sharing)

: Legacy : Planned

18


Business Model : PPP(Public Private Partnership) + SPC(Special Purpose Company)

SPC(Renewable electric power production

& Operation)

KEPCO(Electric Power Purchase &

Selling)

Electricity

Development

Fund

Customer(Home, Building

etc.)

Selling

Electricity

Payment

(Fixed Rate)

Selling

Electricity

Electricity Bill- $0.1~0.2/kWh

Payment for

Losses

Request for

Losses

LG CNS(Integrated Implementation &

Maintenance Business)

Payment for

the System &

Service

Integrated

Implementation &

Maintenance

KOGAS(LNG Supplier)

LNG Supply

Payment

Dohwa

EngineeringPayment for the

Service

Integrated

System Design

19


Simulation of Economic Feasibility (Example)

Generation Cost by Diesel

Generation Cost by 100% Renewable

Cumulative Total Cost by Diesel Generator Only

Cumulative Total Cost by 100% Renewable System

“Diesel generation cost including fuel itself and shipping cost is too high and causes serious loss to the government and/or the power company”

“The Generation Cost of Hybrid System: 10~30% Lower than Diesel Only”

Basic Cost of ElectricityProduction

(Million USD)

`34`27`26`25`24`23`21 `22 `35`20`19`18 3̀7`36`30`29`28 `31 `32 `33

20


Simulation of Carbon and Air Pollutant Reduction (Example)

-

2

4

6

8

10

12

14

16

18

20

“For 20 years, reducing

50~70% ofCO2 andSOx, NOx

“Realize Eco-friendly Island”

(Million Liter)

Fuel Saving Area

Fuel Consumption of Diesel Generation

Fuel Consumption ofRenewable Hybrid

Cumulative Total Fuel Consumptionby Diesel Generator Only

Cumulative Total Fuel Consumption byRenewable Hybrid System

`34`27`26`25`24`23`21 `22 `35`20`19`18 3̀7`36`30`29`28 `31 `32 `33

21

Ⅱ. Case Studies 3) Jo & Geomun Islands

Diesel 0.5 MW

Diesel 0.5MW

1) National project to expand the Ulleung island business model in 62 off-grid islands in Korea

Diesel-Renewables Hybrid Microgrid Systems are Under Construction

22

Ⅱ. Case Studies 3) Jo & Geomun Islands

• •

•

•

Optimal Energy Mix by the Economic & Technical Feasibility

Economic Feasibility Technical Feasibility

Ⅲ. Cooperation of Malaysian-Korean Government

24


Mutual Cooperation Structure

25


History of the Cooperation

Information Sharing and

Training to Malaysian Public

Servant about Smart Grid in

Korea

Initial Mutual Discussion about

Langkawi Green Island Project

Korean Consultants Started

Discussion with KeTTHA and

rekarancang

Rekarancang visited Korea:

Visited Jeju-SG Test-bed and

discussed scope of F/S

Oct. ‘14 ~ Jan. ‘15

Malaysian Government Chose Jeju Project for the

Model of Langkawi Project

KeTTHA Concept Paper: “GREEN ISLAND

TWINNING PROGRAM WITH JEJU LOW CARBON

ISLAND”

Korean Public Servant is Cooperating with KeTTHA

Jan. ’15 ~ Current

Apr. ’15 ~ Current

26


Overview of Korean F/S for Langkawi Project

Name of Study

Low-Carbon Green Island Based

on Renewable Energy in

Langkawi, Malaysia

Period Sep. 2015 ~ Mar. 2016 (6 months)

Goal of Study

Feasibility study about the

low-carbon green island for

Langkawi

Promoting close cooperation

between Malaysia and Korea

in green technology

Introducing Korean energy

independent island project to

Malaysia

Project OverviewProject Hierarchy

Authority

Implementing

Agency

Executing

Companies

Korean

Government

27


Schedule of Korean F/S for Langkawi Project

No Work item DescriptionSchedule

Sep. Oct. Nov. Dec. Jan. Feb. Mar.

1Technical Feasibility

Study

· Preliminary data research and

analysis

· Location Analysis and Selection

· Equipment estimation

· Layout and process plan

2Economic Feasibility

Study

· research current economy

· Investment estimation and financial

analysis

· Determine direction of Project

3Political

Feasibility Study

· Researching related regulations

· Researching related policy

· Project evaluation

· Project expansion plan

4 Report

· Write report

· Translate report into English

5 Report process status

Ⅳ. Closing

29

Ⅳ. Closing

Creating a Synergy Effect by Close Cooperation of Malaysia and Korea

Establishing Firm G2G Relationship for the Langkawi Project based on the F/S Activities

Cooperation of Malaysian-Korean Private Companies for the Langkawi Feasibility Study

Developing & Conducting Real Project in Langkawibase on the Firm G2G Relationship

1

2

3

30

“IF YOU WANT TO GO FAST, GO ALONE

IF YOU WANT TO GO FAR, GO TOGETHER"

“Innovation for a Better Life” with LG Energy Solution

Thank you

LG

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