Korea and the United States will work together to develop "smart grids," modern electricity networks, as part of mutual efforts to save energy and create a new growth engine.

Officials at the Ministry of Knowledge Economy said Minister Lee Youn-ho and U.S. Secretary of Energy Samuel Bodman will sign in Washington today a statement of intent for cooperation in smart grid development. The minister is accompanying President Lee Myung-bak on his visit to the United States.

Prior to the signing ceremony, business associations from the two countries - Korea Smart Grids Association and Gridwise Alliance - signed a memorandum of understanding on Monday to support member companies to cooperate in technology development.



Smart grids are electricity networks that apply information technology and satellite communication systems in the process of electricity distribution. They allow two-way sharing of information between suppliers and consumers to maximize efficiency. The system monitors the supply of electricity, making solar and wind power generation and distribution a more viable alternative to coal and nuclear.

If developed and marketed well, smart grids have huge potential, officials in Seoul said.

"The U.S. has recognized Korea`s advanced technology on smart grid development and its ability to commercialize products, as well as its efforts to develop the new electricity (grid) at a national level," Han Jin-hyun, director-general for energy industry policy of the ministry, told The Korea Herald

The government and the state-run Korea Electric Power Corp. said last week that they plan to set up a $65 million smart grid pilot project in the country`s southern resort island of Jeju by 2011.

The senior official of the nation`s energy policies said the Jeju project would give companies from both Korea and the United States opportunities to develop advanced technologies aimed at saving energy.

If created a high-tech nationwide electricity grid will generate a new market of 68 trillion won ($54 billion) and create 500,000 temporary jobs, and reduce the country`s power consumption by 3 percent by 2030, the government said.

Not only in the aspect of technological development, but also from the business point of view, the partnership will offer Korean firms access to the U.S. market, said Han.

The U.S. government also has plans for a nationwide smart grid, with $4.5 billion earmarked for investment in related technologies. The investment is expected to spawn a new market worth $40 billion, experts said.

(christory@heraldm.com)



By Cho Chung-un