Korea to launch Virtual Power Line project in 2027 with ₩2.4B budget
The Climate Energy Environment Ministry and Korea Electric Power Corporation (KEPCO) announced the outcomes of a 5-month expert forum, revealing plans to launch a Virtual Power Line (VPL) project in 2027 and develop grid-forming technology for Battery Energy Storage Systems (BESS).
Our take
How will Korea's new VPL and BESS grid-forming initiatives address grid congestion and stability?
The Korean government is actively pursuing grid modernization through DER integration by allocating ₩2.4 billion for VPL implementation in 2027 and establishing grid-forming BESS standards, aiming to enhance grid stability and utilization amid renewable energy expansion and transmission delays.
The VPL initiative directly addresses transmission delays by leveraging existing infrastructure with ESS, offering a quicker alternative to new line construction. Simultaneously, the development of grid-forming BESS technology and AMI data integration aims to enhance the technical capabilities of DERs to support grid stability and enable new data-driven services. These efforts reflect a coordinated strategy to shift from a centralized, supply-side focused grid to one that actively integrates and optimizes distributed resources.
What the source says
- The Virtual Power Line (VPL) project is scheduled to commence in 2027.
- Grid-code standards have been established for grid-forming technology, allowing transmission-connected central contract BESS to support grid stability by forming voltage and frequency.
- A testing and verification system for BESS grid-forming technology is planned to be established by November 2026, enabling operation in the actual grid from 2027.
- Ministry of Climate, Energy and Environment The Ministry of Climate, Energy and Environment is pursuing revisions to related regulations to mandate the linkage of Advanced Metering Infrastructure (AMI) data from new apartments to KEPCO.
- Revisions to technical standards and field demonstrations are being pursued to increase the utilization of private BESS in distribution networks.
- Kim Dong-cheol KEPCO President Kim Dong-cheol stated that the forum achieved significant results in legal/institutional improvements, technology demonstration, and commercialization in a short period.
- Korean government The government plans to reflect VPL-related content in national equipment plans, such as the 12th Basic Plan for Long-term Electricity Supply and Demand, and expand it into a large-scale government support project by 2030.
For investors — Investors in Korean DER can anticipate new market opportunities in grid-supportive BESS and data-driven services, driven by clearer technical standards for grid-forming BESS and mandatory AMI data integration. The VPL initiative also signals government commitment to non-transmission alternatives, potentially increasing demand for large-scale ESS.
Watch: Monitoring the formal adoption of the 2027 Ministry of Climate, Energy and Environment budget and the publication of revised grid-codes for BESS grid-forming technology.
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