Carbon Free Islands in South Korea Dong Wook(Dylan) Kim Senior Manager LG CNS 17 th Oct. 2015
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
Ⅰ. Activities and Policies in Korea Major Projects for the Carbon Free Island : Many islands in Korea are now adopting eco-friendly and economical electricity system 1 2 2 Government-driven 100% renewable energy system The biggest island in Korea From smart grid test-bed to commercialization Needs green tourism Benchmarking target for Langkawi island 1 3 3 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. 3
Ⅰ. Activities and Policies in Korea 8 New Energy Industries of Korean Government (MOTIE) ESS: Energy Storage System, EMS: Energy Management System 4
Ⅰ. Activities and Policies in Korea Concept of Energy Independent Island with ESS Conceptual Image of Energy Independent Island Business Model and Consideration Diesel Generator 5
Ⅱ. Case Studies 1) Jeju Island 2) Ulleung Island 3) Jo & Geomun Islands
Ⅱ. Case Studies 1) Jeju Island Current Conditions of Jeju Island Haengwonri Wind Farm Dongkwangri Solar Village Gapa Carbon Free Island 7
Ⅱ. Case Studies 1) Jeju Island The beginning : Jeju Smart Grid Test-Bed Area : 186 km2 (1/10 of Jeju Island), Population : 15,000, Household : 6,250 unit Gujwa-eup 8
Ⅱ. Case Studies 1) Jeju Island Vision and Goals for the Carbon Free Island To Transform Jeju into a Global Model of Green Growth VISION Job creation and Increased Income Promotion of High Value-added Industry synchronized with rd Phase Clean Environment and High Technology Completion of Carbon Free Island (2030) Global Green Growth City Free from Fossil Fuels nd Phase Construction of Infrastructure for Carbon Free Island (2020) Wind Energy, Smart Grid, Electric Vehicles st Phase Completion of Pilot Model of Carbon Free Island (2014) Smart Grid Test Bed, Gapa-do Carbon Free Island 9
Ⅱ. Case Studies 1) Jeju Island Main Plan for the Carbon Free Island 1GW of renewable energy by 2020 50% replacement 1.8GW of renewable energy by 2030 100% replacement 10
Ⅱ. Case Studies 1) Jeju Island Expected Effects from the Carbon Free Island Plan 11
Ⅱ. Case Studies 1) Jeju Island Global Eco-Platform Jeju Project as the Solution for Carbon Free Island Jeju 12
Ⅱ. Case Studies 1) Jeju Island Concept Image of Global Eco-Platform Jeju Smart Building Onshore Wind Offshore Wind EV Infra Onshore Wind Fuel Cell New Grid Integrated Operation Center Smart Home EV ESS Center Solar Power 13
Ⅱ. Case Studies 1) Jeju Island Activity in Each Phase for Global Eco-Platform Jeju 14
Ⅱ. Case Studies 1) Jeju Island Concept Picture for 1st phase 15
Ⅱ. Case Studies 1) Jeju Island 3-Party MOU for Global Eco-Platform Jeju (8th Oct. 2015) New Energy Solution Local Government State-owned Utility 16
Ⅱ. Case Studies 2) Ulleung Island The World s Largest 100% Renewables-based Microgrid is Under Construction [Ulleung Island] Residents: 10,000+ Max. Peak: 11MW Wind Farm Geothermal Plant Solar Plant Diesel Plant #1 Small Hydro Diesel Plant #2 Microgrid Operation Center ESS Fuel Cell & LNG Storage EVs (Car Sharing) : Legacy : Planned Current - Mostly Diesel Phase 1 (~2017) - 30% from Renewables Phase 2 (~2020) - Zero Diesel Two Diesel Plants: 10.5MW, 8MW One Small Hydro: 0.7MW Microgrid Operation System ESS: 20MWh Renewables: Wind 8MW, Solar 1MW ESS: 36.5MWh Renewables: Fuel Cell 23MW, Geothermal 4MW Smart Meters, EVs 17
Ⅱ. Case Studies 2) Ulleung Island Business Model : PPP(Public Private Partnership) + SPC(Special Purpose Company) Customer (Home, Building etc.) Electricity Bill - $0.1~0.2/kWh Selling Electricity KEPCO (Electric Power Purchase & Selling) Payment for Losses Request for Losses Electricity Development Fund Selling Electricity Payment (Fixed Rate) Dohwa Engineering Integrated System Design Payment for the Service SPC (Renewable electric power production & Operation) LNG Supply Payment KOGAS (LNG Supplier) Integrated Implementation & Maintenance Payment for the System & Service LG CNS (Integrated Implementation & Maintenance Business) 18
Ⅱ. Case Studies 2) Ulleung Island Simulation of Economic Feasibility (Example) (Million USD) Generation Cost by Diesel Generation Cost by 100% Renewable Cumulative Total Cost by Diesel Generator Only Diesel generation cost including fuel itself and shipping cost is too high and causes serious loss to the government and/or the power company Cumulative Total Cost by 100% Renewable System The Generation Cost of Hybrid System: 10~30% Lower than Diesel Only Basic Cost of Electricity Production `18 `19 `20 `21 `22 `23 `24 `25 `26 `27 `28 `29 `30 `31 `32 `33 `34 `35 `36 `37 19
Ⅱ. Case Studies 2) Ulleung Island Simulation of Carbon and Air Pollutant Reduction (Example) (Million Liter) 20 Fuel Saving Area 18 16 14 12 Fuel Consumption of Diesel Generation Cumulative Total Fuel Consumption by Diesel Generator Only For 20 years, reducing 50~70% of CO 2 and SOx, NOx 10 8 6 Fuel Consumption of Renewable Hybrid Realize Eco-friendly Island 4 2 Cumulative Total Fuel Consumption by Renewable Hybrid System - `18 `19 `20 `21 `22 `23 `24 `25 `26 `27 `28 `29 `30 `31 `32 `33 `34 `35 `36 `37 20
Ⅱ. Case Studies 3) Jo & Geomun Islands Diesel-Renewables Hybrid Microgrid Systems are Under Construction Diesel 0.5 MW Diesel 0.5MW 1) National project to expand the Ulleung island business model in 62 off-grid islands in Korea 21
Ⅱ. Case Studies 3) Jo & Geomun Islands Optimal Energy Mix by the Economic & Technical Feasibility Economic Feasibility Technical Feasibility 22
Ⅲ. Cooperation of Malaysian-Korean Government
Ⅲ. Cooperation of Malaysian-Korean Government Mutual Cooperation Structure 24
Ⅲ. Cooperation of Malaysian-Korean Government 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 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 Korean Consultants Started Discussion with KeTTHA and rekarancang Rekarancang visited Korea: Visited Jeju-SG Test-bed and discussed scope of F/S 25
Ⅲ. Cooperation of Malaysian-Korean Government Overview of Korean F/S for Langkawi Project Project Hierarchy Project Overview Korean Government Authority Implementing Agency Executing Companies Name of Study Period Goal of Study Low-Carbon Green Island Based on Renewable Energy in Langkawi, Malaysia Sep. 2015 ~ Mar. 2016 (6 months) 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 26
Ⅲ. Cooperation of Malaysian-Korean Government Schedule of Korean F/S for Langkawi Project No Work item Description Preliminary data research and analysis Schedule Sep. Oct. Nov. Dec. Jan. Feb. Mar. 1 Technical Feasibility Study Location Analysis and Selection Equipment estimation Layout and process plan 2 Economic Feasibility Study research current economy Investment estimation and financial analysis Determine direction of Project 3 Political 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 27
Ⅳ. Closing
Ⅳ. Closing Creating a Synergy Effect by Close Cooperation of Malaysia and Korea 1 Cooperation of Malaysian- Korean Private Companies for the Langkawi Feasibility Study 3 Developing & Conducting Real Project in Langkawi base on the Firm G2G Relationship 2 Establishing Firm G2G Relationship for the Langkawi Project based on the F/S Activities 29
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