As part of its ambitious energy transition, South Korea is launching a major procurement effort for battery energy storage systems (BESS), seeking to add 540MW of new capacity to its grid infrastructure. This move underscores the country’s growing urgency to manage renewable energy intermittency and alleviate grid congestion, especially during periods of low electricity demand.
Two Strategic Locations, One National Objective
The Ministry of Trade, Industry and Energy (MOTIE) announced a competitive tender targeting large-scale battery installations, with 500MW set for the Korean mainland and 40MW allocated to Jeju Island, a region known not only for tourism but also for its role as a renewable energy hub. These systems will be required to deliver 4- to 6-hour durations, offering a combined energy capacity of up to 3,240MWh.
This capacity will be critical in addressing seasonal grid challenges. During spring and autumn, when electricity consumption tends to dip, the national grid faces pressure from overgeneration, especially from solar and wind sources. Deploying long-duration storage will allow Korea to capture surplus renewable energy during these off-peak periods and shift it to peak demand hours, reducing curtailment and maximizing asset utilization.
Aligning with Long-Term Energy Goals
This tender fits within South Korea’s broader decarbonization roadmap. The country’s 11th Basic Plan for Electricity Supply and Demand, confirmed earlier this year, lays out a vision to expand renewable energy capacity from 30GW in 2023 to nearly 122GW by 2038. Solar is expected to account for over 77GW, while wind installations will approach 41GW.
Although no formal targets for energy storage were included in the plan, the government clearly acknowledges its critical enabling role. The document calls for substantial grid modernization and the development of market-based procurement mechanisms for BESS and pumped hydro storage. It also recognizes the need to scale flexible resources to manage the growing penetration of intermittent renewables.
Interestingly, South Korea’s approach differs from some Western markets where subsidies or mandates drive storage growth. Instead, Korea is leaning into competitive contracting, using central tenders to attract cost-efficient and technically robust projects.
A Global Player Strengthening Its Domestic Market
While this effort focuses on domestic energy security, it also aligns with South Korea’s industrial ambitions. As home to global battery leaders like LG Energy Solution and Samsung SDI, the country aims to secure a 30% share of the global energy storage market by 2036. Strengthening the domestic BESS landscape not only supports internal resilience but also serves as a proving ground for exported technologies.
The 2025 tender builds on the government’s initial foray into centralized BESS contracts, launched in 2023 with a 65MW, 4-hour project on Jeju Island. That project represented a turning point, establishing a new model for how low-carbon resources can be procured and integrated into Korea’s power system.
Moving Toward a Smarter, More Resilient Grid
South Korea’s latest tender sends a clear signal: energy storage is no longer a peripheral technology—it’s central to grid reliability, emissions reduction, and the broader energy strategy. The inclusion of both price and non-price evaluation criteria also suggests a mature procurement approach that values performance, innovation, and long-term viability, not just cost.
With the global storage market rapidly evolving, Korea’s blend of industrial strength, policy support, and technical sophistication positions it well—not just to meet domestic needs, but to lead internationally. As the energy landscape shifts, this kind of strategic alignment between infrastructure development and market expansion may prove to be a blueprint for others to follow.
