LG Energy Solution Selected for South Korea's First AI-Based Grid ESS Project

LG Energy Solution and Shinhan Asset Management's 'Haetbit Distribution Network Energy' consortium were selected on the 10th as an operator for the Ministry of Climate, Energy and Environment's '2026 AI-Utilized ESS Construction Support Project.' The selection aims to alleviate connection delays and output control problems caused by renewable energy growth saturating the Honam region's distribution grid. The government evaluated distribution grid conditions and project execution capabilities in Honam region renewable energy concentration areas through a public tender, selecting 9 operators and 32 distribution lines for this first-ever government-led distribution grid ESS construction support project.

LG Energy Solution Secures 7 Distribution Lines for 140MWh ESS Project

LG Energy Solution secured 7 distribution lines totaling 140 megawatt-hours (MWh) out of the 32 total distribution lines available, representing the maximum allocation a single operator could obtain. The company will handle high-performance battery supply, ESS construction, and overall AI-based operations, while Shinhan Asset Management will manage financial structuring. Commercial operation starts in 2027 with a 20-year operational period.

Consortium Plans AI Algorithm and VPP Platform Integration

The project installs ESS in the Honam region's saturated distribution grid to alleviate connection delays and output control issues caused by renewable energy increases. LG Energy Solution plans to utilize AI prediction algorithms and a virtual power plant (VPP) platform to enhance renewable energy acceptance and power system stability. The company expects this approach will enable new connections for 40 megawatts (MW) of solar power generation facilities currently waiting for grid access and accommodate an additional 52.4 gigawatt-hours (GWh) of renewable energy annually.

LG Energy Solution Executive Comments on Platform Company Transition

Kang Chang-beom, head of LG Energy Solution's ESS Battery Business Division, stated this represents "an achievement in the process of advancing beyond a battery supplier to become an energy platform company."

FAQ

What did LG Energy Solution secure in the AI-based ESS project?

LG Energy Solution's consortium with Shinhan Asset Management secured 7 distribution lines totaling 140MWh in the government's '2026 AI-Utilized ESS Construction Support Project,' representing the maximum allocation available to a single operator out of 32 total distribution lines.

When will the ESS project begin commercial operation?

Commercial operation of the ESS project will start in 2027, with a planned operational period of 20 years.