KOMIPO plans VPP expansion, integrating renewables and ESS
Korea Midland Power (KOMIPO) held a 'VPP-based Future Power Business Seminar' on October 27, 2026, to discuss fostering Virtual Power Plants (VPPs) as a core for new power businesses by integrating distributed resources like renewable energy and Energy Storage Systems (ESS).
Our take
What does state-owned generator entry mean for independent VPP operators in Korea?
State-owned generators are already competing for VPP resources in Korea, so independent VPP operators face more competition to aggregate solar and storage, though this seminar brought no new market access or revenue rule.
Two state-owned generators, this one included, were among nine VPP operators selected in July for the government's AI-enabled distribution storage programme. What decides how much revenue VPP aggregation earns is the mainland renewable bidding market, which the government plans for 2027 to 2028.
What the source says
- Korea Midland Power Korea Midland Power aims to foster VPPs as a core foundation for new power businesses, going beyond simple generation resource management to stabilize the power grid and create new business opportunities.
- The Distributed Energy Act, effective September 18, 2026, allows distributed energy businesses in specialized zones to directly supply power to consumers without using the power market, but permits market trading for surplus or deficit power.
- The Electricity Facilities Technical Standards, effective October 1, 2025, explicitly defines Energy Storage Systems (ESS) as a 'power plant'.
- The Electricity Safety Management Act Enforcement Rules, effective July 1, 2026, categorizes Energy Storage Systems (ESS) as a 'power plant' for regular safety inspections.
- Lee Young-jo, CEO of Korea Midland Power, emphasized that securing power system flexibility and efficient resource operation are increasingly important due to the expansion of renewable energy.
- Attendees at the seminar shared power market regulatory changes and discussed VPP business activation and new business models utilizing flexibility resources.
- Korea Midland Power Korea Midland Power plans to strengthen capabilities across the entire VPP business, from resource acquisition to integrated operation, market participation, and revenue model development, while resolving technical and institutional constraints.
For investors — VPP operators and aggregators should expect state-owned generators to bid for the same storage programmes and queued solar resources, and compete on the operating terms offered to solar owners.
Solar developers queued on saturated lines should read the revenue-sharing terms of the VPP operator that holds their line, since joining as a VPP resource is the condition for connection there.
Watch: Korea Midland Power's specific announcements regarding VPP resource acquisition, market participation strategies, or pilot projects.
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