Utility of the

Future

2018 KEMRI SYMPOSIUM

Min-Hyug, Park Ph. D

Korea Electric Power CorporationManagement Research Institute

2. Late Challenging Issues

3. Transforming Utilities and New Business

1. Perfect Storms in Energy Industry

4. Utility of the Future, Future of the Utility

3/28

In 1887

4/28

KEPCO, Global Electricity Utility (2018)

5/28

The Era of Disruptive Technology Innovation

6/28

Top 10 Utility Industry Trends of 2018

1

2

3

4

5

6

7

8

9

10

Transforming into Digital Utility

Distributed Energy Change Everything

Effective DER Integration

Technology Innovation

Digital Business Initiatives

Energy Democratization by Blockchain

AI Deployment

Digital Twin for Decision Making

DER Penetration

Energy Storage Enlargement

By Gartner (2018) * Source : tech UK

7/28

Is the current business model valid in the future?

Good Days (’01~’10)

* 2010 → 2016, 6 year reduction rate

Bad Days (’10~’16)

* 2001 → 2010, 10 year growth rate

2. Challenging Issues

3. Transforming Utilities and New Business

1. Perfect Storms in Energy Industry

4. Utility of the Future, Future of the Utility

9/28

Innovation

1st

2nd

3rd

· Cyber Physical System

· Computer· Internet

· Electricity· Mass Production

· Steam Engine· Mechanical Engineering

(Late 18th Century)

(Late 19th Century)

(Mid 20th Century)

(Now)

IoT

NanoBio

AI Big Data

ICT

10/28

Reforming the Value Chain

Generation

Transmission

Distribution

Pricing & Metering

Customer

Self Production

E-Prosumer

Marketplace

V2G

11/28

Emerging New Players

‘Supercharger’(EV Charging)

‘Nest’(Energy Management)

‘Power Wall’(Residential ESS)

(Renewables)

‘i-Home’(Energy Management)

12/28

Cause the Difficulties in distribution Grid

Bulk Power DistributionISO (RTO/TSO)

DER Deployment

Uncertainty, Volatility

Blackout↑, Quality↓

Inverse flow, Islanding

Outage↑, Complexity↑

Net-Demand Variance

Reserve requirement↑

* Sandia National Laboratory, Characterizing Output Variability (’12), N. Dakhel, Grid Capacity Issues with Distributed Generation (’14)

13/28

Energy Policy Shift

Cheap Clean & Reliable

· Nuclear phase-out

(Stepwise)

· Reduce operating

time of coal plant

· Shut-down old plant

· 2030 renewable

generation ratio 20%

· PromoteNew Business

· Develop Energy

Efficiency

· Energy policy establishment considering environment and security

· Promoting 4th industrial revolution and building leading platform

14/28

Sunrise? Or Sunset?

2. Challenging Issues

3. Transforming Utilities and New Business

1. Perfect Storms in Energy Industry

4. Utility of the Future, Future of the Utility

16/28

Centralized to Distributed

Preferred Resource Pilot

Open Field Message Bus

17/28

Own to Operate

Virtual Power Plant

Renewable O&M

18/28

Sales to Save

Strategy CAP 2030

EO programm

19/28

Commodity to Service

Home Mobility

Industry City

Energy as a Service

20/28

Facility to Data

Strategic Plan2018-20

“Full Speed Ahead on

Digitalization”

Utilityof the Future

2. Challenging Issues

3. Transforming Utilities and New Business

1. Perfect Storms in Energy Industry

4. Utility of the Future, Future of the Utility

22/28

Solution is…

VRA.I.

IoT BigData Cloud

Robot

Generation Market Transmission Distribution Meter Customer BTM

BehindThe

Meter

23/28

Energy Platform (Digitalization)

24/28

IT Company,Manufacturer

Start-up

Energy Marketplace (Openness)

25/28

Energy Valley (Connectivity)

Bitgaram Energy ValleyBitgaram Energy Valley

· Foster as a smart energy hub of Korea

· Create global innovative economy in collaboration with local communities

Establishing Bitgaram Energy Valley

26/28

Move Forward, Together

27/28

From Industry 4.0 to Utility 4.0

KEPCO 4.0 Vision

EstablishingInfrastructure

Promoting Industrialization

Providing High Quality Power

감사합니다.