LG Energy Solution's company-in-company (CIC) AVEL has signed a business agreement with Korea South-East Power and Tamra Offshore Wind Power to jointly participate in a pilot project to improve Jeju Island's power market system, the company said Wednesday.
Under the partnership, the three firms will predict renewable energy generation quantity which will be managed by linking offshore wind generators and energy storage systems (ESSs).
AVEL plans to use energy aggregation technology to operate ESS and others. Korea South-East Power will share its administrative know-how related to the forecast system, while Tamra Offshore Wind Power will provide wind power operation data.
"Until now, it had been difficult to accurately predict the generation quantity of offshore wind energy due to its nature and there was no system to manage energy stored in ESS," AVEL CEO Kim Hyun-tae said. "Our partnership with the two firms in predicting accurate offshore wind energy generation and using it efficiently will contribute to stabilizing the domestic power market."
Base on the partnership, AVEL will also participate in the renewable energy bidding system of the power market.
The new system, which will be established at the end of this year, enables renewable energy operators with a facility capacity of more than 1 megawatt to join bids in the domestic power market equally with such as thermal and nuclear power generation companies.
AVEL was launched as a CIC of LG Energy Solution in October 2022. The following month, the company signed a business agreement with the Jeju Energy Corporation to stabilize the power system on Jeju Island and discover new energy projects.