This issue brief aims to draw policy implications for the power grid of Korea by examining the case of grid innovation in the UK, which has successfully achieved decarbonization of the power sector by establishing a renewable energy-centric power grid despite the constraints of being an island nation. Lessons learned for Korea: The required amount of control resources for system stability should be analyzed based on future scenarios and these control resources should be secured cost-effectively through an auction system. Optimal grid construction plans should be designed by conducting scenario-based economic evaluations and the decision-making processes should be transparently disclosed through reports for public discussion. In order to avoid grid constraint costs and social conflicts associated with onshore transmission line construction while achieving decarbonization of the power sector, Korea should also actively consider the implementation of offshore HVDC.
EXECUTIVE SUMMARY
• This issue brief aims to draw policy implications for the power grid of Korea by examining the case of grid innovation in the United Kingdom (UK hereafter), which has successfully achieved decarbonization in the power sector by establishing a renewable energy-centric power grid despite the constraints of being an island nation.
• As the role of conventional power plants in ensuring power system stability decreases with the decarbonization of the power sector, additional means of ensuring power system stability are necessary. In the UK, the required amount of system stability control resources is analyzed based on future scenarios. These resources are secured cost-effectively through a control resource auction system.
• Additionally, the UK develops optimal grid construction plans that respond to future uncertainty by conducting annual economic evaluations based on scenarios. Most decision-making processes are transparently disclosed through reports, publicly discussed, and creative solutions are presented based on the disclosed information. On the other hand, Korea formulates basic power supply plans and transmission and transformation equipment plans based on a deterministic method that considers only one scenario, and related information is not disclosed. It is desirable to avoid deterministic planning to deal with future uncertainty and to consider a wide range of alternatives through transparent information disclosure.
• The UK transmits surplus renewable energy over long distances to demand sites through offshore HVDC, despite the high cost of large-scale offshore HVDC construction. This approach enables the UK to avoid grid constraint costs and social conflicts associated with onshore transmission line construction while achieving decarbonization of the power sector. Korea should also actively consider the implementation of offshore HVDC.