INSIGHT 2026-09-16 · CLAIM 261ELECTRIC TIMES · KOREA POWER MARKET

2026.09.16 · Updated 2026.10.22

LS Electric and KEPCO Partner to Localize Grid-Forming Technology

LS Electric and KEPCO signed a Memorandum of Understanding on September 14th to jointly develop and commercialize distribution-level Grid-Forming (GFM) technology, aiming to stabilize the power grid amid increasing renewable energy integration.


Our take

Will grid-forming inverters become standard for battery storage in Korea?

Grid-forming inverters are already required for storage in Korea's central contract market, but no requirement has been named for distribution-connected storage, where the KEPCO and LS Electric agreement only starts joint development.

Whether the requirement spreads to distribution-connected storage depends on KEPCO writing it into its distribution connection standards, and this memorandum covers development and demonstration with no timetable.

What the source says
  • The collaboration aims to respond to the rapidly changing power environment following the enactment of the Distributed Energy Activation Special Act.
  • LS Electric and KEPCO signed an MOU for technical cooperation on distribution-level power electronics at LS Tower in Anyang, Gyeonggi Province.
  • LS Electric official LS Electric aims for early completion of technology advancement and domestic system demonstration for Grid-Forming technology.
  • IEA and NREL reports Current inverter-based power sources (solar, wind, ESS) reduce grid inertia, causing rapid frequency fluctuations from minor shocks.
  • LS Electric official An LS Electric official emphasized that securing power grid stability is a key national task due to the explosive increase in distributed generation.
  • IEA and NREL IEA and NREL reports indicate a rapid expansion of the global Grid-Forming market.

For investors — Contracted storage investors should confirm that their PCS supplier meets the grid-forming requirement in the market operation rules (Appendix 3) and KEPCO's connection standards before bidding.

VPP operators and developers of distribution-connected storage should watch KEPCO's distribution connection standards as this joint development moves to demonstration, since no grid-forming requirement applies to them yet.

Watch: Monitoring the progress of the joint Grid-Forming technology development and its domestic system demonstration by LS Electric and KEPCO.

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