Korea weighs lowering central dispatch generator capacity threshold
Industry stakeholders and the Korea Power Exchange are discussing the necessity of lowering the current 20MW capacity threshold for central dispatch generators to better integrate distributed energy resources.
Our take
Will Korea lower its 20 MW central dispatch threshold, and who benefits?
Korea's 20 MW central dispatch threshold is unlikely to fall soon, since KPX supports a cut but has no rule change, timetable or system to dispatch small units, and gas engines would gain first.
Under current rules only generators above 20 MW receive KPX dispatch instructions, so fast units below it cannot be dispatched for balancing. Who gains depends on the grouping, reserve and dispatch rules KPX would design for small units, not on the threshold number.
For investors — VPP operators and aggregators should watch the grouping rules KPX designs for small units, since those will decide whether aggregation remains the route to market for assets below the threshold.
Merchant storage investors and optimisers should not assume a change for storage, since the debate covers generators and storage has its own central dispatch definition of more than 10 MW and at least two hours.
Watch: Discussion on lowering the 20MW central dispatch generator capacity threshold.
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