- Development and commercialization of an integrated energy management system linked with wind power, photovoltaic systems, and energy storage equipment.
- Core smart grid system technology for stable new renewable energy.
- Full-blown real-life application to industrial sites after pilot runs for technology validation at the Smart Grid Demonstration Complex in Jeju Island.

Smart grid technology will be developed for the first time in Korea to stably supply electric power produced by irregular output renewable energy sources such as wind power and photovoltaic power generation systems.

POSCO ICT (Huh, Nam-suk, CEO) and IBM Korea (Lee, Hwi-sung) announced that the two companies agreed to develop management system (EMS) for new renewable energy. EMS is the core technology required for stably supplying electric power generated by new renewable energy at acceptable prices to factories, buildings, and general households.

EMS for new and renewable energy is an indispensable element for smart grids in order to operate and manage smart grid facilities to supply stable electricity generated from new and renewable energy sources such as wind and photovoltaic power generators to conventional power grids.

Once plugged to smart grids, EMS affords capabilities for planners to build timely energy operation plans by setting up real-time response system based on advanced scenario analyses on the changes in the supply of and demand for energy. For example, the accommodating house can stably receive electric power generated by an energy source whose output changes according to the weather conditions, such as wind power and photovoltaic systems, because the EMS converts these energy sources into the most efficient energy sources in real time. Besides, the power supply status can be monitored and controlled remotely in real time, and operational efficiency can be enhanced through various sensitivity analyses.

In this project, POSCO ICT will manage the overall tasks, including the establishment of stabilized and cost-effective power generation, by developing an optimal power generation algorithm for efficient energy utilization.

The two companies plan to complete development of the system by May next year, and apply it initially to the Jeju Smart Grid Demonstration Complex of POSCO ICT before jointly supplying the system to manufacturing factories in the steel and chemical industries, and new industrial complexes and buildings.

"Smart grid business is one of our strategic initiatives we identified to drive our future growth,” said Choi Chang-ho, Senior Vice President, Smart Grid Promotion Group. "POSCO ICT will be able to take a big step forward as a leader in the domestic smart grid market, by developing intelligent new and renewable energy management system by next year, and by applying it to the JeJu Smart Grid Demonstration Complex in advance for technology verification, followed by commercialization of the technology for real-life application to model cities and industrial sites.”