- Resolving the problem of "energy-isolated" areas in developing countries through renewable power generation and ESS
- Size of global microgrid market expected to reach approx. 23 trillion won by 2020
 

POSCO ICT (President & CEO: Choi, Doo Whan) is pushing forward with the construction of an energy self-sufficient microgrid by associating renewable power generation and Energy Storage System (ESS) for developing countries.

POSCO ICT plans to search and develop markets jointly with the government and other related agencies of the home country in order to push through with an energy self-sufficient microgrid that will help resolve the "energy isolation" in developing countries where the national power transmission network does not reach remote areas, based on the microgrid model constructed by POSCO ICT in Palgeumdo Island in Sinan County.

The energy self-sufficient microgrid is a system by which power is generated by using renewable energy such as photovoltaic or wind; the power produced is used in energy-isolated areas such as islands or remote areas without power supply from outside in self-sufficiency form. In keeping with the government's "2030 new energy industry proliferation strategy" with which the government is moving forward in order to use – as a new growth engine – the new climate system initiated as a result of the Paris Framework Convention on Climate Change sponsored by the UN, POSCO ICT's plan calls for the supply of microgrid technology as a package that was fully verified in the home country rather than the supply of ESS or generating unit as a single item. That is why it is drawing a lot of attention.

POSCO ICT together with KEPCO recently pushed through with a project in order to create an energy self-sufficient village in Mozambique, Africa for the first time among Korean companies. For Mozambique, which is 3.5 times the size of Korea, the north-to-south distance is more than 2,000 km; this makes it difficult to construct a power transmission network covering the whole country. Moreover, 60% of Mozambicans have no power supply. POSCO ICT successfully constructed a microgrid consisting of photovoltaic power generation and ESS and created an energy self-sufficient village by supplying electric power to 50 households and a school. The company plans to expand market entry further while aggressively utilizing the experience in Mozambique.

The government also plans to promote the microgrid through the "2030 new energy industry proliferation strategy" established in order to respond actively to the new climate system. Especially, the government is going to provide strong support for the export of microgrid with which electric power is produced by environment-friendly energy using international funds such as Green Fund, and the power produced is utilized in neighboring areas. For developing countries, there is a need to expand power generation facilities to resolve the electric power shortage problem, but they are also faced with the task of reducing carbon emission according to the new climate agreement. Under such circumstances, ESS associated with new renewable power generation is considered an alternative for developing countries. For this reason, the energy-related industry predicts that the size of the global microgrid market will grow to 20 billion dollars (about 23 trillion won) by 2020.

"Globally, there are a significantly large number of energy-isolated areas where no electric power is supplied due to insufficient power supply network, and the microgrid construction business utilizing new renewable power generation without carbon emission is expected to be vitalized. POSCO ICT is moving forward with overseas market entry jointly with related agencies on the basis of projects fully verified in the home country,” an official at POSCO ICT said.