Gyeonggi Province and Goyang City Receive First Regulatory Sandbox Approval for "Shared ESS"... Full-Scale Demonstration of New Electricity Business Begins

“Shared ESS Virtual Net Metering” Receives First-Ever Regulatory Exemption from Ministry of Trade, Industry and Energy
Public-Private-Government Partnership Resolves Grid Issues... Outcome of Regulatory Easing
Reduces Line Overload and Delivers Electricity Bill Savings for Consumers
Cooperation to Build a Sustainable Business Model... Ongoing Dialogue Between Province and KEPCO

The pilot project for shared Energy Storage Systems (ESS), jointly promoted by Gyeonggi Province and Goyang City through public-private cooperation, has received a special regulatory exemption from the government, enabling a full-scale demonstration of a new electricity trading model. As the first case of its kind nationwide, there is growing interest in whether this initiative can simultaneously address both grid stabilization and the development of emerging energy industries.

ESS Power Plant. Provided by Gyeonggi Province

On July 22, Gyeonggi Province and Goyang City announced that the “Shared ESS Virtual Net Metering Service for Securing Grid Flexibility Resources,” applied for by private companies including Ninewatt, passed the Ministry of Trade, Industry and Energy's Industrial Convergence Regulatory Sandbox Committee on June 29 and has received regulatory sandbox approval.

With this approval, the virtual net metering model utilizing shared ESS can now be launched as a pilot project for the first time in the country.

Virtual net metering is an innovative electricity trading system that goes beyond traditional home solar power cost savings by matching electricity produced and stored through ESS or solar power with participating consumers and deducting it from their electricity bills.

In this pilot project, shared ESS units will be installed near distribution lines where overload is a concern, simultaneously enhancing the stability of the power grid and deducting the stored electricity from the bills of public institutions and private companies that are not physically connected to the ESS.

The total project budget is KRW 3.2 billion. In connection with a climate ministry open call, ESS facilities with a total capacity of 5.8 MWh will be installed—4.8 MWh in the Naeyu distribution line section in Ilsandong-gu, Goyang City, and 1 MWh in the Hwaseom distribution line section in Deokyang-gu. The demonstration will be conducted for two years starting in the second half of this year (2026).

The initiative began as Gyeonggi Province and Korea Electric Power Corporation (KEPCO) sought solutions to regional grid overload issues, and evolved into a public-private-government partnership through the involvement of Goyang City and technology-driven private enterprises.

However, under the current Electric Utility Act, direct trading and virtual net metering outside of the power market by electricity generators are not permitted, creating regulatory barriers to advancing the project.

In response, Gyeonggi Province and Goyang City have consistently called for regulatory reforms to the Ministry of Trade, Industry and Energy and the Ministry of Environment, while collaborating with local National Assembly offices, Korea Electric Power Corporation, Korea Energy Agency, and other stakeholders to secure the special regulatory exception.

Gyeonggi Province plans to continue pursuing regulatory improvements and solidifying the business framework to ensure the pilot project can be stably implemented in the market. In particular, the province intends to work closely with KEPCO to develop measures that will ensure the profitability of private participants.

Cha Seong-su, Director General of the Climate, Environment and Energy Bureau at Gyeonggi Province, stated, "The approval of this special regulatory exception is a representative example of the government, the National Assembly, local governments, public agencies, and private enterprises working together to break down regulatory barriers for the common goal of stabilizing the power grid. Through a successful demonstration, we will provide active support so this project not only enhances power grid stability but also establishes a leading public-private partnership model for the domestic energy sector's new business ecosystem."

This content was produced with the assistance of AI translation services.