Samsung SDI(006400) secured the largest volume in the government's next-generation artificial intelligence (AI) distribution-grid energy storage system (ESS) project. Six of the nine winning consortia adopted Samsung SDI battery cells.
The Ministry of Climate, Energy and Environment released on the 10th the results of the selection for the "AI-based ESS construction support project," listing nine consortia—VPP Lab, LG Energy Solution, KEPCO KDN Co. (KDN), SK eternix, HD Hyundai Electric, Gridwiz, Korea East-West Power Co. (EWP), and Hyundai Engineering & Construction—as winners.
The I-based ESS construction support project is a government program that stores electricity produced by renewable energy in ESS units installed on distribution lines and supports efficient operation through AI. As renewable generation increases, the approach focuses on areas where the grid is under strain, using ESS instead of expanding lines to balance power supply and demand.
Of the 32 distribution lines in total, 21 will use Samsung SDI batteries, a provisional tally of 66% of the total. By power capacity, that is 84 MW, and by storage capacity, 420 MWh. The quantities using LG Energy Solution and SK On batteries are seven lines and four lines, respectively.
Samsung SDI plans to supply its integrated ESS solution "SBB (Samsung Battery Box) 1.5" for this project. SBB 1.5 is an all-in-one product that packages high-nickel NCA prismatic battery cells, modules, racks, and safety devices in a 20-foot container. A key feature is that it can be used immediately when connected to the grid.
LG Energy Solution emphasized its capabilities in ESS construction and AI-based operation. Partnering with Shinhan Asset Management, LG Energy Solution formed a consortium and joined the project not only as a simple cell supplier but also as a virtual power plant (VPP)-based ESS operator. It secured seven lines, known to be the maximum level a single operator can receive.
SK On is set to supply ESS batteries for four lines, equivalent to 12% of the total in this project. SK On is expanding its business from an electric-vehicle battery focus to the ESS field. Through this project, it additionally secured experience in supplying grid-scale ESS.
In the battery industry, this AI distribution-grid project is seen as a prelude to the third central ESS contract market tender scheduled for Sep. The competition among Korea's three domestic battery makers was fierce in the first and second ESS tenders. The results this time are viewed as an indicator of the direction of future large-scale ESS orders.