Korea announced on Wednesday the official start of a program to install a nationwide smart grid system that will help the country’s businesses and households save billions of dollars in coming years.

A ceremony hosted by the Ministry of Knowledge Economy marked the official launch of the five-year project that will make the country one of the first in the world to have a nationwide smart grid system.

A smart grid system largely consists of what is known as advanced metering infrastructure that affords consumers a real-time review of how much energy they are consuming and what it will cost, thus encouraging them to cut down their consumption when the price of electricity, which varies hourly, is at its highest.

It also includes an energy storage system that allows consumers to store energy when its cost is at its lowest for later use.

Under the 3.6 trillion won ($3.16 billion) project, the country will install AMI units in 10 million or nearly half of all households in the country by 2016, along with 1,000 ESS units that can store up to 200,000 kilowatts of electricity throughout the nation, according to the ministry.

It said the system will allow the country’s businesses and households to save up over 3.7 trillion won on their electricity bills in 2016, while creating jobs and related industries worth an estimated 4.7 trillion won.

The government will also increase the number of recharging outlets for electric vehicles from the current 3,000 to 150,000 in 2016 to help promote the use of clean-energy transportation, the ministry said. (Yonhap News)