LSIS betting big on microgrid as power management systemMadeinkoreablog
LSIS is going all-out to become a global top-tier microgrid operator, as part of its portfolio shift into the next-generation power management industry.
The Seoul-based energy and electric equipment systems firm has in recent years pushed for aggressive expansion into the promising yet infant energy-independent microgrid sector, amid growing demand for sustainable sources of electricity.
As the microgrid requires a wide range of technological expertise in such areas as energy storage systems (ESS), energy management systems (EMS) and renewable energy sources, only a few electricity firms have so far tapped into the new growth area.
The microgrid, as a combination of those technologies, uses renewable energy sources — including wind and solar power — to generate electricity. The ESS and EMS are then used for a more efficient electricity management.
The firm’s latest microgrid achievement came last month when it signed a contract with Montgomery College in the United States to build an energy-efficient smart campus there.
Under the deal, LSIS will team up with the Korea Electric Power Corp. (KEPCO) to establish its building energy management system (BEMS), ESS and solar panels on six buildings of the campus. Both firms pledged to complete the project in the first half of next year.
LSIS expects the college to drop energy consumption by up to 10 percent, as its microgrid system helps generate, store and manage electricity in a computerized and smarter way.
The microgrid is considered an attractve revenue area, due to its wider use in areas such as smart campuses and some islands that lack a stable electricity supply due to tough weather conditions.
A group of industry-leading players — such as GE-Alstom and Schneider — are, for this reason, making increasing investments to win more renewable energy-powered island projects across the globe.
In October, LSIS also won a license to build an energy-independent island contract in Singapore. The deal allows LSIS, along with the two overseas firms, to establish four separate microgrid sectors and connect them for a single power network on Singaporesouthern island of Semakau.
“We are going to further raise our global profile by developing a variety of microgrid models tailor-made for each country,” an LSIS spokesman said. “The microgrid market is expected to grow at a fast pace, as many underdeveloped countries are still suffering from a lack of electricity due to weak infrastructure. We will make the utmost efforts to win more orders especially from North American and Southeastern Asian countries.”
The firm estimates the global microgrid market to be worth some $20 billion (23 trillion won) by 2020, and that it will continue to grow for more years backed by cross-border calls for renewable, eco-friendly sources of energy.
Last year, LSIS Chairman Koo Ja-kyun also stressed the importance of renewable energy and the microgrid as the next core growth area.
“To meet the growing electricity demand, the energy-independent microgrid is the only alternative,” he said in a keynote at the Asia Clean Energy Forum (ACEF) last year. “LSIS will bet big on the global energy industry by developing various microgrid business models for each region.”