South Korea plans smart grid by 2030

South Korea aims to build the world's first nationwide smart grid system to reduce its emissions by monitoring energy use more carefully.

Unlike conventional "dumb" electricity grids, smart grids allow two-way communication between electricity suppliers and consumers, as well as enabling more dispersed generation and storage of power.

The grid, to be set up by 2030, is part of the country's $103bn initiative to increase its generation of green energy from the current 2.4 per cent of total power to 11 per cent in the next two decades.

According to a government-led committee, South Korea could lower its greenhouse gas emissions by 40 million tonnes annually with a national smart grid.

The committee's findings estimate that smart grids would reduce overall energy use by 3 per cent and lower the peak load for electric power by about 6 per cent. The electricity savings would be equal to the output of seven 1GW nuclear power reactors.

The committee comprises government officials, company executives and representatives and researchers. It did not provide a cost estimate for the project.

Consumers could reduce their electricity bills by an average of 15 per cent by charging their appliances and cars during off-peak hours, as indicated through the use of smart meters.

State-run electricity monopoly Korea Electric Power Corp plans to set up a $65m smart grid pilot project in the country's southern Jeju Island by 2011.

It would act as a test-bed for the nationwide initiative. The grid will incorporate two 10MW substation transformers and four power distribution lines located near an area with 3,000 households, commercial districts and green energy facilities that include a wind farm.

The US has similar plans for a nationwide smart grid, with $4.5bn earmarked for investment in related technologies.