South Korea's state-run power company said Tuesday that it has signed a deal to set up a micro grid in Canada, marking the first time it will make inroads into the North American market.

The $11.7 million contract signed with PowerStream Inc. includes an option to participate in updating the Canadian partner's conventional supervisory control and data acquisition systems, Korea Electric Power Corp. said.

Micro grids are localized grids that can be operated autonomously from nationwide power networks and is ideal for smaller communities.

PowerStream, with operations in the northern parts of Toronto and Ontario, is considered a leader in micro and smart grids, and ranks as the fourth-largest power supplier in Canada.

KEPCO said its micro grid system based on an energy management system (EMS) can control wind and solar power as well as other renewable energy sources. The EMS employed can even be used to regulate energy storage systems.

The company said the memorandum of agreement, which was reached late Monday, also outlines a separate $4.7 million joint KEPCO-PowerStream investment plan for the Penetanguishene region of Ontario.

The two companies agreed to work together to expand technological cooperation in the micro grid sector, which will allow them to expand into other projects. (Yonhap)