Laboratory and welcome to today's webinar hosted by the Clean Energy Solutions Center

and the United Nations Foundation's Energy Access Practitioner Network. Today we are

very fortunate to have Bruce Lee and Hans Kim, joining us. This outstanding group of

panelists would be discussing the Jeju Island Smart Grid Projects.

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posted to the Solution Center Training page within a week of today's broadcast.

And we have a very exciting agenda prepared for you today that is focused on the Jeju

Island Smart Grid Project, one of the world largest smart grid communities. And before

our speakers begin their presentations, I'll provide a short informative overview of the

Clean Energy Solutions Initiative and then following the presentations, we will have

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And now I'd like to say some brief introductions for our distinguish panelist today. Our first

speaker that we'll be hearing from is Mr. Bruce Lee, the Deputy Secretary General for

the International Smart Grid Network where he deals with smart grid and renewable energy

projects that are related to global climate change. And following Mr. Lee we will hear

from Mr. Hans Kim from Korea Telecom and as a Director of Smart Grid Department in KT.

Mr. Hans is responsible for leading the business and technical strategy for Smart Grid in Korean

Micro Energy Grid. And with those introductions, please join me in welcoming Mr. Bruce Lee

to the webinar.

>> BRUCE LEE: Hi, good morning everybody. Welcome everyone for joining us today. I'm

Bruce Lee, from ISGAN Secretariat. I am the Deputy—you know, the ISGAN where it started

in 2011 and we are try to facilitate government to government. First of all, I like to thank

you for the people from Clean Energy Solutions Center and our ISGAN and excellent for preparing

this wonderful webinar session. And I assume that Jeju Smart Grid Project is nearly a first

smart grid project in the world and it well known as the project many to test into operability

among the technologies and utilities for Smart Grid and to verify technologies. So today,

I like to deliver a very brief introduction of Jeju Smart Grid Projects first and then

more detail information shall be followed by Mr. Hans.

Next slide please.

Yeah, as you see here, the target is to develop and verify the Smart Grid technology and business

model. Actually, the period was started in 2009, December and the first phase was finalized

in May 2011. That is to enough to facilitate all the operation among the concession. There

is you can call the first phase. The second phase started from June 2011 and finalized

by May of 2013 last year. So that means this Jeju Smart Grid Project is now ready finalized

and then that we have interim reports for the government. And if you look at the budget,

the total budget investment amount is 230 million US dollars. Out of them are common

investees around 30 percent of total investments up to 70 million US dollars and private sectors,

they invest their own, 160 million US dollars. It's compost of 70 percent of total investment.

Next slide please.

Yeah, what is done during this period is that first, we can see, we have verified some technologies.

Mostly we have seven categories. We verified to test technologies. Among them, the most

important step AMI areas, another is the EMS, the other one is EVCI, and Interconnections

and ESS. So mostly recognized that AMI, and EMS, and EVCI, these areas would mainly test

these during these project areas.

Next slide please.

And then another research we can get from this Jeju Smart Grid project is that we just

verify some business model. This business model we can categorized into main three or

main categories. The first area is customer domain areas. The second is that transportation

domain and so the other one is that the other ones. So, mostly a total of nine businesses.

We have recognized to verify during the project period and these business model now there

are already reports to be come in and to verify and we are going to transfer these business

model to new Korea Smart City project which will be started on early 2015.

Next slide please.

So, one of our very famous Korea research institutes they repaired and they require

some reports this project leads us during last year so if you look at very briefly we

have 153 technologies developed and is verified. Out of them 111 IT has been registered in

Korea government and we think that what we need more in smart grid, the business is that,

the architecture and interoperability standards. As you all know Smart grid architecture is

very, very complicated. And we also need some consensus from global society that's why we

need more complicated architecture system we think. So expert there agreed they just

give some the great based on the SGMM for five—these five category areas. So probably

we think each category, the final and this phase is—the figure is generally with being

the higher than 3.5 point, above less than 4.5 grade. So, generally and everybody we

think the final I think is based on the SGMM model it could be around the 3.5 grades.

Next slide please.

So as I mentioned on the previous slide, we just recognized the big research with big

returns from this project is that we recognized. We got this nine business model from this

project. So, this 9 business model, that's based on this three business categories mainly

on the Smart Consumer Domain and second is based on the smart transportation domain and

the energy usage consulting service and the load leveling and power quality improvement,

et cetera. So these 9 business model now we're are going to adapt in view of Korea Smart

City Project which will be started early 2015.

Next slide please.

Yeah, so now what's next? As I mentioned, the Jeju smart grid project already finalized

on the May 2013 last year. So during last second half the Korean government and KSGI,

they prepared some next project which will be lasted for another two years during last

year with that [inaudible] [00:14:19] our candidates companies in the local here. They

prepare application. And then now from this year we are doing some feasibility study through

some Korean, some research institutes among [inaudible] [00:14:42] Korean government.

So this feasibility study shall be finalized with that to around this year August to September.

Then after we got some results from that research institutes where the feasibility study then

probably we can expect that the project will be studies from early next year 2015 and we

also expect that the duration for new Smart Grid City project will be lasted for 3 years.

And the timing and the schedule can be subject to change. But this is very brief introduction

of Smart and Jeju Smart Grid project. And the more details or information's shall be

followed by Mr. Hans. Welcome Mr. Hans please.

Thank you.

>> HANS KIM: Thank you very much. This is Hans Kim from KT, Korea Telecom. It's a great

pleasure to introduce the Jeju Island field trial on Smart Grid. Well actually my role

in Jeju Trial was project leader of KT consortium. So, next side please.

My talk this day consists of three parts. In the very first part, I will introduce the

three aspects off Korean economy including power market and then I will show more details

on actually what's going on Jeju field trial. In the final part, we'll summarize some what

we learned in this Jeju field trial.

Next slide please.

Well, the slide shows the brief introduction of South Korea economy.

Well, actually South Korea is quite small country, less than 115th in world lies maybe

the country but regarding on economy they had, let's say as GDP and the volume of trading,

it's quite high level, around number 10th over the world and another key, some industries,

the semiconductor, and the ship building, automobile et cetera also positions in around

top 5 level over the world.

Next slide please. Now this slide shows that Korea, the system

overview in 2008. In right-hand side, there are some indices, especially the rate of the

transmission and distribution loss is around 4 point—at 0.1 percent, the number one in

the world. And blackout duration is around 16 minutes a year, the annual indices, top

two of the world. And also load factors around 76 percent, the one in the world.

Next slide please.

Regarding on this environment, energy dependency in Korea is a very immediate issue nowadays

because Korea is one of largest energy consumption countries in the world so we have around 97

percent out of foreign energy dependency. So, how to manage of this energy dependency

is one of

the mission or agenda.

Next slide please.

This slide will show the overall structure of power market in Korea. Actually before

2001, Korean power market was not privatize and still a part of public sector governed

by Korean government but from 2001, this structure of power market started to restructure into

very competitive environment but this figure shows a little bit disrupted the aspect 'cause

in generation part area a fully and privatized market. So there are more than 80 generation

company but in transmission and distribution and including sales part—sales part, there's

only one big giant company KEPCO. So the next part of this restructuring, a project will

be a competitively environment in T&D and Sales. So this restructuring process is here

ongoing issue in Korean power market.

Next slide please.

Here is why Korean government and private sectors tried implement Smart Grid environment

in but actually the level of electric circuit consumption in Korea is around number 10 and

reconsider Korea to choose this point but the volume of power consumption per capita

is around 1.7 comparing OECD average around issues in some grid in right-hand side. So

how to reduce or manage of this energy usage and consumption aspect in Korea is—are the

issue that's one of the reason of smart grid project in Korea—actually from some survey,

economy survey in Korean government mention that if the situation is raised from the very

low price and easy access for electric usage in Korean economy.

Next slide please.

Okay, in this second part. I will explain more detail in Jeju field trial.

Next slide please.

Jeju is—how to explain. Jeju is quite lovely island for honeymooners in Korea but why Jeju