State-run Korea Electric Power Co., the largest electric utility company in Korea, signed a memorandum of understanding on Wednesday with KT, the nation’s second-largest mobile carrier, to jointly develop a business model targeting the overseas smart grid market, KEPCO said in a press release.

A smart grid, which refers to an advanced electric grid using smart net meters based on information and communications technology, has attracted global attention as it can improve the efficiency, reliability and sustainability of the conventional electric grid. 

“Partnership of the two companies, both of which boast world-competitive technology in their fields, could facilitate the commercialization of smart grid technology and further export it to overseas markets,” said KEPCO CEO Cho Hwan-ik.

Korea has continued to invest in developing a business model using a smart grid based on the positive growth outlook for the new energy technology. It sets an export goal of 49 trillion won by 2030 in this sector.

The Energy Ministry launched the world’s largest smart grid test bed construction project on Jejudo Island in 2009. Ten consortiums joined the 64.5 billion won project and tested their technologies and business models in five areas until 2013.

KT and KEPCO took part in the Jejudo project, and both companies have invested in developing an integrated energy management system and creating a market for smart energy technologies.

Despite few success cases in the world, the positive outlook for the global smart grid market has been flooded.

For instance, GTM Research, a global energy think tank, said in its 2013 report that the global smart grid market is expected to cumulatively surpass $400 billion globally by 2020, with an average annual growth rate of over 8 percent.

China will be the largest smart grid market in the world, accounting for over 24 percent of the global market, the report said.

By Seo Jee-yeon (jyseo@heraldcorp.com)