south korea

South Korean energy storage company H2 is to set up a new battery production plant to scale up the production of its secondary vanadium redox flow battery.

The 4628m2 facility will be built in Yuseong, South Korea, with a targeted annual production capacity of 30MWh.

Samsung SDI is to form a joint venture (JV) for energy storage systems with inverter manufacturer Sungrow in China.

The JV will develop lithium-ion battery energy storage, as well as marketing and sales of its storage solutions and products. The South Korean and Chinese companies plan to establish new firm in the first half of 2015.

The price of lithium-ion batteries for electric vehicles and energy storage systems (ESS) have fallen by a third in the past year, according to a report by Korea’s Electronic Times.

It reports the price of mid-to-large lithium-ion secondary battery cells dropped from $500-600/kWh last year to $350/kWh. In South Korea, said to be less competitive than the global market, batteries are traded at $400-500/kWh.

British AFC Energy (AFC) has struck a deal with South Korean power plant owner Daniel to provide a 1MW alkaline fuel cell system for a stationary plant.

The deal has an expected worth of $3.75m and contains a follow-on option for a further 3MW project, which could make a total potential value of $15m. According to AFC, this is the largest single order AFC has received since the company launched in 2006.

The 1MW fuel cell system is set to be deployed in stages at Daniel’s site. The system will use a mixture of liquefied natural gas (LNG) and biomass gas as its primary energy source. The South Korean government’s clean energy incentive programme will support the project.

It is the second deal for AFC in South Korea within a week after signing a contract with Chang Shin Chemical for the supply of multiple fuel cell systems with a potential of 5MW.

“South Korea is one of the world's fastest growing fuel cell markets where US companies have traditionally made early inroads due to their long history," said Ian Williamson, chief executive at AFC and added: “This initial agreement represents a tremendous opportunity for AFC Energy and, together with our other commercial-scale projects, is expected to establish a strong foundation to build a truly world-class British fuel cell company focusing on industrial, chemical and utility sectors.”

State-owned electricity utility company Kepco estimates that the installed capacity for stationary fuel cell systems in South Korea will increase from 306MW 2014 to 780MW by next year and double again by 2020.

Power supplier Schneider Electric has warned that South Korea lacks of equipment to cope with power cuts.

A nationwide survey on behalf of Schneider Electric has shown that only 40% of over 1,400 asked organisations, including hospitals and data centres, have uninterruptible power supplies (UPS) installed.

"We've seen many power supply issues. Local industries are still passive (in this area). As summer is approaching, risks over possible blackouts are growing", said Chae Kyu-mun, executive at Schneider Electric Korea.

Chae urged the country to reduce power consumption and to deploy automated UPS to counter blackouts as chronic power shortages in the summer increase the demand of back-up power.

According to Schneider Electric, local industries are not implementing energy-saving regulations entirely. Hospitals have started to introduce UPS systems, Chae stated and added: "Especially in hospital and transportation industries, UPS is crucial as even a brief power cut could cause great damage."

In 2011, power cuts across the whole country during an unseasonable heat wave caused a public uproar forcing the head of the Ministry of Knowledge Economy, Choi Jung-gyeong, to resign.

The total market for UPS in Korea is estimated at $490m, with Schneider holding a 30% share.