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The South Korea Energy Storage System market growth is driven primarily by the increasing deployment of renewable power sources owing to the nation’s basic plan for long-term electricity supply and demand (11th Edition), which outlines ambitious targets for renewable energy, aiming for a 21.72% share by the year 2030 and a more substantial 32.95% by 2038.

Furthermore, increasing transmission deferral projects by KEPCO and MOITE to avoid frequency regulation and the well-established battery manufacturing prowess of the nation are increasing the demand for the South Korea Energy Storage System market.

However, factors such as recurring fire accidents pertaining to battery energy storage systems, the nation's high import dependency for battery raw materials, and the growing presence of cheaper and increasingly high-performance Chinese batteries are restraining the market growth of energy storage systems in South Korea.

Energy storage systems consist of diverse methods and technologies employed to store energy, facilitating its later use to generate power. Energy is available in various forms, such as chemical, gravitational, electrical, heat, and kinetic. Numerous methods and technologies exist for storing these varied energy forms. The choice of energy storage technology is commonly influenced by factors like the specific application, economic considerations, integration within the system, and the availability of resources.

In South Korea, various energy storage solutions are used, including pumped hydro, electrochemical batteries, and others. Depending on the energy storage technology and delivery characteristics, an ESS can serve many roles in the electricity market.

Drivers

Increasing Deployment of Renewable Power Sources, Primarily Solar & Wind

Over the last ten years, South Korea has undergone a significant transformation in its electricity generation landscape, marked by a remarkable rise in the contribution of renewable energy sources. Starting at a modest 2.5% in 2012, the proportion of renewable energy sources in the country's electricity generation mix soared to 9% by 2024, reflecting a substantial growth of 7.5 percent.

A pivotal factor behind this surge in RE electricity generation in South Korea has been the rapid expansion of solar photovoltaic (PV) technology. In 2012, each RE technology held a relatively equal share, each accounting for approximately 1 gigawatt (GW). However, solar PV has experienced rapid growth, reaching an impressive 26.6 GW by the end of 2024.

As energy storage systems effectively address the intermittency issue associated with renewables by storing excess renewable energy during surplus periods and releasing it during peak demand, thereby smoothing out fluctuations and ensuring a consistent electricity supply, the increasing deployment of renewable energy sources is driving the demand for energy storage systems.

In February 2025, South Korea finalized its biennial master plan, officially known as the "Basic Plan for Long-Term Electricity Supply and Demand (BLPE)" (11th edition). This strategic blueprint sets ambitious targets for renewable energy, aiming for a 21.72% share by 2030 and a more substantial 32.95% by 2038.

Aligning with the new BLPE, South Korea passed the “Energy Trifecta Bill” at the Plenary Session of the National Assembly’s Committee on Industry, Trade, Resources, SMEs and Startups. The bill includes the National Grid Expansion, Special Offshore Wind Power, and High-Level Waste Management bills.

To cope with the increasing proportion of renewable energy within the nation's power mix, South Korea made significant additions to its energy storage capacity. The forecast for renewable energy deployment in South Korea anticipates a gradual increase. As renewable sources continue to gain traction, there is an expected surge in the demand for energy storage systems, driven by the imperative to mitigate the inherent intermittency associated with renewable energy systems.

Segment Analysis by Technology

Electrochemical

Electrochemical storage denotes an energy storage system wherein chemical energy is converted into electrical energy and vice versa through electrochemical reactions. This technology finds widespread application in batteries and various other energy storage devices. In electrochemical storage systems, electrical energy is stored in the form of chemical potential and can be released as needed by reversing the electrochemical process.

Notably, the electrochemical sector emerges as the most rapidly advancing form of storage technology in South Korea. In terms of battery energy storage system (BESS) deployment, South Korea stands among the global leaders.

By the end of 2023, the cumulative installed capacity of battery storage in the country had reached 4.4 GW/10.4 GWh. The major applications for BESS in the nation are clean energy integration, demand management, and frequency regulation to maintain grid stability.

Majority of the installed battery energy storage system capacity is lithium-ion based chemistry, while technologies like sodium sulfur (NaS) batteries and vanadium redox flow batteries (VRFB) are limited to pilot research and early demonstration projects.

Government Policies

South Korea introduced several policies to aid the development of the energy storage systems market. For instance, in October 2023, the South Korean government unveiled the Korean Energy Storage Systems (ESS) industry development strategy. The implementation of a flexible power system built on energy storage technology is the central focus of this development strategy.

The Korean government has also identified secondary batteries as one of its 12 national strategic technologies, recognizing their critical role in the country’s future industrial competitiveness. To strengthen this sector, the government is actively leading the development of targeted strategies like the 2030 Secondary Battery Industry (K-Battery) Development Strategy and offering comprehensive support across the entire value chain—from research and technology development to industrialization and export promotion.

Since 2017, the nation has mandated the installation of an energy storage system in newly constructed public buildings as part of the government’s efforts to integrate sustainable energy solutions. The mandate applies to new public buildings with a peak demand of 1 MW or more.

South Korea is advancing legislative measures to bolster its domestic battery manufacturing sector. The proposed Battery Industry Special Act aims to introduce direct subsidies for local battery manufacturers—a strategic response to growing competitive pressure from Chinese battery producers.

This legislation is designed to provide targeted financial support, strengthen the country’s battery supply chain, and enhance global competitiveness in the energy storage and electric mobility sectors.

Complementing this legislative initiative, the South Korean government unveiled a comprehensive plan in January 2025 during the National Policy Coordination Meeting and Economic Ministers' Meeting. Titled “Measures to Strengthen the Competitiveness of Eco-friendly Vehicles and Secondary Batteries,” the plan outlines four key priorities:

1. Addressing temporary demand stagnation,

2. Advancing cutting-edge battery technologies,

3. Reinforcing the secondary battery ecosystem, and

4. Responding effectively to external uncertainties.

As part of the initiative, the government announced a 31.7% increase in financial support for the secondary battery industry, raising total funding to 7.9 trillion won, signaling its strong commitment to solidifying South Korea’s leadership in the global battery market.

Recent Market Trends and Developments

1. Key players in the Korean battery manufacturing sector are strategically relocating the production of battery materials from mainland China to South Korea. In order to meet the requirements for U.S. tax incentives, the Korean conglomerate Posco is creating a battery materials supply chain that completely avoids sourcing from China.

2. Apart from lithium-ion battery technology, there is an increasing focus on developing other battery types, such as sodium, to be used in electric vehicle applications and energy storage systems.

3. Rising number of renewable power output controlled stopping. This trend underscores the pressing need for energy storage systems to address the challenges faced by fluctuating renewable energy generation.

4. South Korea launched the 2025 1st ESS Central Contract Market auction, offering 540 MW of capacity for energy storage projects across the mainland and Jeju. Selected projects will enter into 15-year contracts with KPX, with stable revenue potential subject to compliance with licensing, milestone, and performance requirements.

South Korea Energy Storage System Market Opportunities

1. Growing rooftop market in major cities such as Seoul and others, increasing the demand for residential energy storage systems.

2. The demand for flow batteries is growing in transmission deferral systems and commercial applications.

3. With the growing ESS installations, the demand for regular operational and maintenance (O&M) services is bound to increase, offering opportunities for O&M services.

4. With South Korea actively expanding its energy infrastructure and setting ambitious targets for renewable energy, there is a growing demand for energy storage solutions. BMS players can seize this opportunity by providing an advanced and efficient battery management system to support the integration of renewable energy sources.

According to Blackridge Research, the outlook for the South Korean Energy Storage System Market remains strong in the medium term, and the market is expected to expand during the forecast period due to compelling economics, policies, and decarbonization commitments by various stakeholders.

Blackridge Research's South Korea Energy Storage System Market Outlook report consolidates the developments and builds a perspective on growth from the point of view of energy storage in its current and future role.

The report provides a comprehensive analysis of the historical development, the current state of the energy storage systems scenario, and its outlook.

The majority of the data in the report has been derived from multiple bottom-up and top-down analyses, as well as proprietary models, databases, and offerings—the Global Project Tracker Service —built from public and exclusive sources over the years.

(You can access a comprehensive list of both existing and upcoming battery ESS Projects across the globe, along with their current status, through our extensive Global Battery ESS Projects Database.)

What do we Cover in the Report?

South Korea ESS Market Drivers & Restraints

The study covers all the major underlying forces that help the market develop and grow and the factors that constrain growth.

The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.

Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and will function as a guide for you to analyze the degree of impact.

South Korea ESS Market Analysis

This report discusses an overview of the market, the latest updates, important commercial developments and structural trends, and government policies and regulations.

Special attention will be given to depict the impact of the changes in government policies and the regulatory landscape.

South Korea ESS Market Size and Demand Forecast

The report provides global market size and demand forecasts until 2030, including year-on-year (YoY) growth rates and CAGR.

South Korea ESS Market Analysis

The report examines the critical elements of the South Korea ESS industry supply chain, its structure, and the participants.

Using Porter's five forces framework, the report covers an assessment of the South Korea ESS industry's state of competition and profitability.

South Korea ESS Market Segmentation & Forecast

The report dissects the South Korea ESS Market into segments based on type. A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.

Further, market size and demand forecasts will be presented, along with various drivers and barriers for individual market segments.

Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for "bespoke" market segmentation to better align the research report with your requirements.

Key Company Profiles

This report presents detailed profiles of key companies in the South Korea ESS industry, such as Samsung SDI Co. Ltd., LG Energy Solutions, etc.

Generally, each company profile includes a company overview, relevant products and services, a financial performance, recent developments, and company's business strategy.

Competitive Landscape

The report provides a comprehensive list of notable companies in the market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.

The study also discusses the strategies adopted by leading players in the industry.

Executive Summary

The executive summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.

The report begins with an executive summary chapter and ends with conclusions and recommendations.

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