Designation Plan for Distributed Energy Special Zones

The designation plan establishes Korea’s first distributed energy special zones under the Distributed Energy Act to pilot local generation-local consumption systems and reduce dependence on long-distance transmission. The first designated regions were Jeonnam, Jeju, Busan and Gyeonggi, following the review of candidate areas including Jeju, Busan, Gyeonggi, Gyeongbuk, Ulsan, Chungnam and Jeonnam. The zones allow new business models such as direct electricity trading, region-specific tariffs, VPPs, EV-based V2G, ESS and P2X. In Jeju, all three proposed models — VPP-based V2G, ESS and P2X — were approved, supporting the island’s 2035 carbon-neutrality strategy and distributed energy industry development.

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