SEOUL, South Korea – From experiments started by the developed world, ‘smart grid’ - or turning electricity systems more intelligent - is similarly abuzz in this country, but Korea Electric Power Corporation (Kepco) is setting on record that it is not yet keen at integrating broadband over power lines (BPL) into the system due to probable outage risks.

In an exclusive interview, Kepco vice president of Smart Grid Office Hyo-seok Nam explained that BPL or power line carrier (PLC) for internet still have some security issues that may pose risk into the system, especially with “hacking risks” given that smart grids are highly dependent on information technology (IT) or the overlay of advanced communications system into the existing electricity grid.

“There are areas where we can use internet in the smart grid, but utilization of PLC is not very much in Korea, we still have security concerns to be addressed in integrating it into the smart grid,” he said.

Mr. Nam added one of the major concerns raised by the company is probability of “internet hacking”, wherein “people can trigger power outage into the system, so using internet as integrated into smart grid is very critical … that concern has to be resolved first.”

Nevertheless, the ‘smart grid system’ being developed by Kepco will be an all-encompassing one – the benefits it will eventually extend to Korean consumers can range from more efficient and reliable electricity services in terms of extremely-reduced outage rates and lower T &D (transmission and distribution) system loss as well as more advanced metering; improved integration of renewable energy systems into the grid (by also integrating a storage system for RE capacity) and even a charging system for electric vehicles.

For the electric vehicle charging system, it was gathered that Kepco already sealed a memorandum of understanding with Korea’s home-grown carmarker Hyundai Corporation for vehicles that can run on electricity or even in developing the hybrid types.

Touting it as one of Korea’s way into reducing its carbon footprints, the ‘smart grid’ promises to reach all 18 million Korean household doors by 2030.

Kepco is currently piloting a smart grid project in Jeju island, with potential to cater to 6,000 households; while the rest of the major cities, including Seoul, may have its take on the technology by 2020.

Based on estimates, Kepco will be spending roughly 118.7 billion Korean won for the Jeju pilot; while bringing the technology to the entire country will command a considerable investment of 30 trillion Korean won until 2030.

As far as introducing advanced metering infrastructure (AMI) is concerned, the Kepco official noted that their primary consideration is bringing down the cost, especially for households so they would not be unduly burdened with additional financial setbacks.

Mr. Nam said the target is to bring down the cost of meters intended for households to 20,000 Korean won, which is comparable to the prevailing cost of the traditional meters currently deployed for residential end-users. At current development phase, the cost of the so-called ‘intelligent meters’ is set at 50,000 Korean won.

In terms of power interruptions, ‘smart grid’ technologies are seen having innate capabilities to track down affected areas; hence, customer concerns and complaints can be better addressed.