Even if there is excess power, we cannot share it, so on days off from factories, shut off solar power

For the first time in history, the government will stop producing solar power next month because the supply is greater than the demand for electricity. This is because power outages can occur when the transmission and distribution networks cannot cope with excess power generation. Although solar power generation is concentrated in the Honam and Gyeongnam regions, the expansion of the power grid connecting to the metropolitan area is slow, and more cases of forced power generation are expected to be stopped in the future.

The Ministry of Trade, Industry and Energy announced on the 24th the ‘Special Measures for Spring Power Supply and Demand’ and announced that it would control the output up to 1.05GW (gigawatt) based on the capacity of solar power facilities on for the Honam and Gyeongnam. regions from the 1st of next month. 1GW is equal to the amount of electricity produced on average by one nuclear power station, and this is the first time the government has drawn up a supply-demand plan in spring rather than summer and winter, when r demand for electricity is high.

This measure is unusual in that it forces a reduction in power supply rather than an expansion. The Ministry of Industry predicted that a supply-demand imbalance could occur during the Labor Day (April 29-May 1) and Children’s Day (May 5-7) holidays, when factories that use electricity are closed. This is because solar power generation continues even during the holidays, but industrial power demand plummets during the holidays.

An official from the Ministry of Industry said, “Until last year, we were able to maintain the balance between power supply and demand only by reducing coal and liquefied natural gas (LNG) production, which can quickly adjust output according to demand. “There could be a supply-demand imbalance problem,” he said.

Above all, the problem is that solar power generation is concentrated in the Honam and Gyeongnam regions, which have a relatively low demand for electricity compared to other regions. Electricity produced in these areas must be brought to the metropolitan area, where the demand for electricity is high, but the transmission and distribution network currently built is not sufficient to handle it.

Previously, there was a case where solar and wind power generation was stopped for the same reason in Jeju Island. In Jeju Island, where the proportion of renewable energy is high, output limit orders were issued three times in 2015, and the number is increasing every year, reaching 132 orders in the same year last year. The controls were mainly for wind power generation, but there were also 28 measures against solar power generation. However, a series of measures were implemented not at the government level, but at the decision of the power exchange itself.

The government intends to consolidate transmission lines connecting non-capital and metropolitan areas in the medium to long term to resolve the imbalance between power supply and demand, but financial problems are immense. KEPCO’s annual deficit was more than 30 trillion won last year, and a similar level of loss is expected this year, so there is no room for investment.

The supply of energy storage systems (ESS), which can store electricity generated through solar power generation and use it later, also requires huge costs and takes a long time to introduce the facility. Through the recently published ’10th Basic Plan for Electricity Supply and Demand’, the Ministry of Trade, Industry and Energy announced that 26GW ESS will be required by 2036, and that up to 45.4 trillion won will be required for this .

This measure is expected to cause economic losses to renewable energy producers, but opposition is expected from operators as there is no legal basis for compensation.