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South Korea selects bidders for Jeju battery ESS tender

  • : Battery materials, Electricity
  • 23/11/29

South Korea today selected three power utilities as bidders for its tender to build and operate long-cycle battery energy storage (ESS) in Jeju province.

The winning bid will secure a term tender of 15-20 years, which will determine the price and volume through the ESS bidding market. Providers will be paid at the pre-contracted price when the facility is operating in the future, the country's energy and industry ministry (Motie) said in August when it issued the tender.

The bidding was done with a total volume of 65MW/260MWh, with 35MW allocated for eastern volumes and 30MW allocated for western volumes. State-owned utility Korea East-West Power won the eastern proportion of 35MW/140MWh, while LS Electric won 10MW/40MWh and state-owned Korea Southern Power won 23MW/92MWh for the west allocation, according to the Korea Power Exchange. The first ESS facilities are expected to be completed in early 2025.

A total of 13 power providers from 11 companies with a total capacity of 206MW participated in the tender. Competition resulted in the bid price dropping by about 15pc from initial expectations of the successful bid price, although Motie did not disclose the price.

ESS is a flexible resource that contributes to system stabilisation and can respond to the volatility of renewable energy, Motie said. But its distribution has been limited because of difficulties in recovering investment costs in the current unified electricity market.

"With this bid we will further promote the distribution of ESS, which will play an important role in stabilising the Jeju system while also promoting the establishment of a power market tailored to the characteristics of each power source," said Motie director of electricity policy Lee Ok-heon. "We plan to actively review and prepare for the opening of the next central contract market."


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25/03/17

Norway cold on EU VAT power sales harmony

Norway cold on EU VAT power sales harmony

London, 17 March (Argus) — Norway will not harmonise its value-added tax (VAT) legislation for cross-border power sales with the EU despite pressure from market operator Epex Spot, with the country's finance ministry claiming that its current rules are "satisfactory", it told Argus . Norway's finance ministry has not "found any reasons" to consider better integrating its VAT procedures on cross-border power sales, the ministry said, adding that EU rules are not "binding" and that, as such, "there is no ongoing work" to align the Nordic country with the broader European market. The decision follows a series of letters sent by Epex Spot that highlighted its significant objections to the existing VAT arrangements. The market operator argues that the system allows for potential double taxation on some sales while others can go completely untaxed. They added that this increases the risk of VAT tax fraud in Norway, with the system "leav[ing] the door open to well-known tax fraud methods", Epex Spot's public and regulatory affairs director, Davide Orifici, told Argus last year . In response to the ministry's statement, Epex Spot told Argus that while the legislation "is not binding for Norway", it hoped that Norway would align with EU rules "on a voluntary basis" to "secure the Norwegian power market against VAT fraud". It added that Norway's "tax authorities themselves" had confirmed to the media that Norway was, in effect, "keeping the doors open to fraud". Epex conducted discussions with Norway's tax authorities late last year, which were characterised as "good", but the finance ministry appears to be unmoved on EU VAT harmonisation. This is the latest flashpoint in a lingering dispute within Norwegian politics over whether it is best to pull back or move closer to the EU power market. Norway's coalition government fell apart earlier this year as the country's centre party left the ruling alliance over lead-partner Labour Party's willingness to align Norway more closely with the EU and adopt the bloc's fourth energy package. This leaves the Labour Party to govern as a minority government until parliamentary elections take place on 8 September. By Daniel Craig Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Korea's Samsung SDI to raise funds for battery growth


25/03/14
25/03/14

Korea's Samsung SDI to raise funds for battery growth

Singapore, 14 March (Argus) — South Korean battery maker Samsung SDI is looking to raise 2 trillion Korean won ($1.38bn) to fuel its battery production developments, citing a Hungary plant expansion and its joint venture investment with US carmaker General Motors (GM). The capital raise is based on the mid- to long-term growth prospects of the electric vehicle battery market, given that battery facility investments take 2-3 years to reach mass production, said the firm on 14 March. Samsung SDI previously flagged that it intends to expand its plant in Hungary's God to 40 GWh/yr. The firm in August 2024 signed an agreement with GM to build a two-phase nickel-cobalt-aluminum battery plant that is expected to have a final production capacity of 36 GWh/yr in New Carlisle, Indiana. The joint venture investment will take around $3.5bn. The proceeds will also be used to invest in solid-state battery line facilities in South Korea, said Samsung SDI. The firm launched its first all solid-state battery pilot line back in March 2022 and aims to mass produce solid-state batteries in 2027, which are more stable and have high energy density, it said last year. Its facility investment has quadrupled from W1.7 trillion in 2019 to W6.6 trillion last year, but Samsung SDI expects this to shrink this year, citing "investment efficiency". Samsung SDI's battery usage fell by almost 11pc to 29.6GWh in 2024, according to data from South Korean market intelligence firm SNE Research, given a decline in demand from major car original equipment manufacturers in Europe and North America. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Thailand approves Sunwoda's $1bn battery investment


25/03/13
25/03/13

Thailand approves Sunwoda's $1bn battery investment

Singapore, 13 March (Argus) — Thailand has approved an investment of more than $1bn by major Chinese lithium-ion battery manufacturer Sunwoda to produce battery cells for electric vehicles (EVs) and energy storage systems (ESS). Sunwoda's Thailand-based subsidiary Suwoda Automotive Energy Technology will build manufacturing facilities in the country's Eastern Economic Corridor, Thailand's Board of Investment (BOI) said on 13 March. Its first plant will be in the Chonburi province and will produce lithium-ion battery cells for EV manufacturers. The plant's capacity was not disclosed. The plant is Sunwoda's first EV-related battery cell plant in the Asean region, said BOI. "Having EV battery cells produced locally will significantly reinforce our status as a manufacturing hub for EVs and hybrids, and increase the country's competitiveness," said BOI's secretary-general Narit Therdsteerasukdi. Chinese automotive firms have entered Thailand to build facilities in recent years, including state-owned auto manufacturers Changan Automobile and Chery Automobile , and EV maker Hozon New Energy . Chinese battery firms have also been looking to do the same, with BOI previously indicating interests from major Chinese battery manufacturing companies. Changan's plant in Thailand is expected to be launched in the "coming weeks", said BOI, while Chery's plant is still under construction. Thailand's National Electric Vehicle Policy Board approved an extension in late 2024 for the battery EV production requirements for BEV producers in the country. BEV manufacturers in Thailand are required produce certain numbers of BEVs based on their import volumes in 2022-23. Thailand's automobile production totalled around 107,100 units in January, down by almost 25pc on the year, on the back of sluggish domestic sales owing to strict lending from financial institutions given high household debts, according to the Federation of Thai Industries. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Lower Rio Tinto Al output cuts New Zealand power demand


25/03/13
25/03/13

Lower Rio Tinto Al output cuts New Zealand power demand

Sydney, 13 March (Argus) — New Zealand's industrial electricity demand fell on the year in October-December 2024, after Rio Tinto cut production at its Tiwai Point aluminium smelter in the previous quarter. The country's industrial electricity demand was down by 9pc compared with a year earlier, data from the Ministry of Business, Innovation, and Employment show ( see table ). Rio Tinto cut production at Tiwai Point in late-July 2024, after New Zealand utility Meridian Energy requested that it reduce its energy use by 205 MW. Many of the plant's potlines remained off line until late-September 2024, when Rio Tinto began restarting production at a reduced level. The Tiwai Point Aluminium Smelter is New Zealand's largest industrial energy user, consuming 572MW of power, often accounting for 12-13pc of national electricity demand, according to New Zealand's Electricity Authority. But it only accounted for about 10pc of total demand in October-December because of its lower production level. Rio Tinto's decreased power use and the country's rising geothermal generation in October-December pushed New Zealand's coal- and gas-fired generation to their lowest levels since late-2022. Utilities produced 2.1PJ from coal- and gas-fired generation, down by 73pc on the quarter and by 42pc on the year ( see table ). Coal- and gas-fired plants accounted for just 6pc of total generation in the fourth quarter of 2024, down from 19pc in July-September and 10pc a year earlier. Meanwhile, New Zealand's renewable power generation grew in importance over October-December, even as the government continued taking steps to promote coal- and gas-fired generation. The share of renewable electricity rose to 94.3pc, the highest level since December 2022 and the fourth highest on record. The New Zealand government is eager to promote oil, gas and petroleum generation, resources minister Shane Jones told Argus in December 2024. New Zealand's government has rolled back a ban on offshore gas exploration and has been fast-tracking coal developments since taking office in 2023. The country's largest utility, Meridian Energy, also warned of a structural gas shortage in late February, calling for new gas exploration. By Avinash Govind New Zealand Energy Quarterly Oct-Dec '24 Jul-Sep '24 Oct-Dec '23 q-o-q ± % y-o-y ± % Electricity Consumption (PJ) Industrial 11.0 10.1 12.1 8.7 -9.0 Total 33.7 38.1 35.2 -11.4 -4.3 Electricity Production (PJ) Coal 0.5 3.2 1.3 -84.9 -64.2 Gas 1.7 4.6 2.4 -63.8 -29.8 Geothermal 7.6 8.5 7.1 -10.9 6.6 Total 37.7 41.5 38.2 -9.3 -1.4 Source: Ministry of Business, Innovation, and Employment (MBIE) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US headline inflation eases in February


25/03/12
25/03/12

US headline inflation eases in February

Houston, 12 March (Argus) — US inflation fell in February for the first time in four months, an unexpected improvement amid mounting uncertainty over the new US administration's tariff, immigration and spending policies. The consumer price index (CPI) slowed to an annual rate of 2.8pc in February, down from 3pc in January, the Labor Department reported Wednesday. Analysts surveyed by Trading Economics had forecast a 2.9pc rate. Core inflation, which strips out volatile food and energy, rose at a 3.1pc annual rate, down from 3.3pc the prior month and the lowest since April 2021. The deceleration in inflation comes as the Federal Reserve has signaled it is in no hurry to change its policy stance as it weighs the impacts of President Donald Trump's tariffs and other policies, which most economists warn will spur inflation. The Fed is widely expected to hold rates unchanged at its policy meeting next week after pausing in January following three rate cuts in the final months of 2024. The energy index fell by an annual 0.2pc in February from 1pc growth in January. Gasoline fell by 3.1pc. Piped gas rose by 6pc. Food rose by an annual 2.6pc, accelerating from 2.5pc. Eggs surged by an annual 59pc, as avian flu has slashed supply. Shelter rose by 4.2pc, accounting for nearly half of the overall monthly gain in CPI, slowing from 4.4pc in January. Services less energy services rose by 4.1pc, slowing from 4.3pc in January. New vehicles fell by 0.3pc for a second month. Transportation services rose by an annual 6pc, slowing from 8pc in January. Car insurance was up by an annual 11.1pc and airline fares fell by 0.7pc. CPI slowed to a monthly 0.2pc gain in February from 0.5pc in January, which was the most since August 202 3. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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