DOMESTIC ENERGY STORAGE SYSTEM

[Anchor Lead]

Two years ago a blaze at an energy storage system made headlines. Energy storage systems are indispensable for achieving carbon neutrality, as they help make up for the shortcomings of renewable energy, which is affected by weather conditions. The global energy storage system market is growing more than 30 percent annually and Korean conglomerates are also producing impressive results, but the domestic market remains stagnant.

[Pkg]

This energy storage system in California, is the largest in the world. Its key parts were supplied by a South Korean company. The key parts of other two large energy storage systems in the states were also manufactured by Korean makers. While Korean manufacturers are expanding their presence overseas, the domestic energy storage system market remains stagnant. Three years ago, the systems were installed in some 970 areas nationwide, but the following year their number was halved. This year, it fell to less than 10 percent. Some 70 SMEs that participated in manufacturing energy storage systems scramble to stay afloat.

[Soundbite] Lee Hak-sung(ESS Promotion Association) : "Some companies survive on the orders they receive. But most companies are on the brink of closing their businesses."

The primary factor: fires. The number of blazes in energy storage systems decreased notably from 2018, but concerns linger. What's particularly concerning is that the exact cause of fires is yet to be identified. This discouraged businesses from investing in the energy storage system market.

[Soundbite] Lee Hak-sung(ESS Promotion Association) : "I wish institutions in charge of safety provided guidelines. Then private investors would be able to calculate cost-effectiveness in line with those guidelines."

The market has shrunk even more since the policy on expanding revenues from electricity sale, or the so-called REC multiplier scheme, was abolished.

[Soundbite] Lee Tae-ui(Korea Energy Economics Institute) : "There is no compensation for facilities designed to store and distribute power, but it is urgently needed."

Energy storage systems are essential for achieving carbon neutrality, but in Korea they are gradually losing ground. Experts are calling for efforts to restore the damaged market and promote trust in their safety.