Battery solutions company Kokam Co. deployed two lithium nickel manganese cobalt oxide energy storage systems — a 24 MW system and a 16 MW system — for frequency regulation on the South Korean electricity grid. The 24 MW lithium NMC energy storage system will be used for frequency regulation.
Operational since January 2016, the two new systems, along with a Kokam 16 MW / 5MWh Lithium Titanate Oxide energy storage system deployed in August 2015, provide South Korea's largest utility, Korea Electric Power Corp. (KEPCO), with 56 MW of energy storage capacity for frequency regulation.
In addition to improving grid reliability, the Kokam energy storage system will enable KEPCO to improve its operation efficiency by reducing its need for spinning power generation reserves. This will allow KEPCO to shift energy generation to lower cost, more efficient power plants and decrease “wear and tear” on all its power plants.
For example, the three Kokam energy storage systems will deliver an estimated annual savings of $13 million in fuel costs, providing fuel cost savings three times larger than the energy storage systems' purchase price over the systems’ lifetimes. In addition, by reducing the amount of fossil fuels burnt for frequency regulation, the Kokam energy storage systems will help reduce KEPCO’s greenhouse gas emissions.
The systems also use Kokam’s KCE 40-foot container, which features a direct cooling design, in which the container’s heating ventilation and air conditioning system only regulates temperatures inside the system’s racks rather than the entire container.