Since the Special Act on the Promotion of Distributed Energy took effect in June 2024, Korea's power market has been rapidly reorganizing into a distributed system. In the process, energy storage systems (ESS) have emerged as core assets for keeping the grid stable. As the industry grows, new business opportunities are opening up, but so are new regulations and legal issues that companies must navigate.

Attorney Sungwoo (Goni) Kim of SOLARIS recently analyzed, in a column for an energy industry publication, the legal problems ESS operators face in practice and proposed concrete strategies for responding to them. Drawing on the expertise SOLARIS has built in energy and environmental regulation, the column sets out clear legal standards for companies working through a period of power market reform.

Attorney Kim addressed three key issues. First, he analyzed the 70% supply obligation and the complex settlement of network usage fees that apply when electricity is traded directly within distributed energy special zones. Second, drawing on recent court decisions, he explained how manufacturers' and installers' liability for ESS fires and defects is becoming stricter. Finally, he described the growing weight given to safety assessments in power market bidding and advised companies to put maintenance systems and data management strategies in place proactively.

The expansion of distributed energy and the reform of the power market offer companies new opportunities to grow. Behind them, however, lie regulatory and legal risks that need careful review from the earliest stage of a project. The full column is available at the link below. Companies that need help with energy regulation or related legal advice are welcome to contact SOLARIS at any time.

▶ Read the original column: Legal Issues and Challenges for the Distributed Energy and ESS Industries