Korea Power Exchange (KPX) President Yoo Sang-hee.

Korea Power Exchange (KPX) President Yoo Sang-hee delivered his New Year’s message on Jan. 2, in which he pledged his determination to lead organizational reform and push market changes with a spirit of “putting things on the right track.”

“Changes in the power industry go beyond what we’ve imagined in terms of speed, size and impact,” KPX President Yoo said. He called for making 2017 a year in which people fulfill his or her own duties to cope with the advent of an age of change and uncertainty, as ICT convergence for electricity corresponding to the advent of the 4th Industrial Revolution, the Post-2020 Climate Change Regime, natural disasters and responses to terrorist attacks. 

Looking back at last year, he said that KPX executives and staff members have made concerted efforts to make tangible achievements in the stabilizing of power grids and the fair operation of the power market. 

But with the ICT convergence for power, the expanding of new and renewable energies, and the advent of “prosumers,” the energy industry is shifting fast from a supply-oriented paradigm to a demand-based one, Yoo noted. 

With the Paris agreement on the Post-2020 Climate Change Regime, which went into force on Nov. 4, 2016, 197 signatory countries are obliged to cut greenhouse gas emissions.  Korea is expected to strengthen policies to incorporate renewable energies instead of fossil fuels and ramp up energy efficiency, he said. 

Yoo said KPX will make 2017 a year in which the power institution will establish the groundwork to overhaul power market systems and power operation regimes to brace for rapid changes of the power industry environment. This year, Yoo said that KPX will focus on leading the eco-friendly, divergent power-source-oriented future power industry. KPX will strive to present diverse business models related to new energy industries and to revamp market systems. 

KPX will proactively support government policies to establish a power operation process correspond to new energy industries and the improving of market systems, realize the core value for stabilizing power supply and reflect such environmental changes as responses to the climate change regime, he said. 

A view of KPX headquarters in Naju, Jeollanam-do. (Photos: KPX)

About KPX

KPX is responsible for the operation of Korea’s electricity market and the power system, as well as the execution of the real time dispatch and the establishment of the basic plan for power supply and demand.

At KPX, electricity is traded with hourly pricing across more than 900 generation companies - including the 6 major ones - 24 hours a day, 365 days a year.

KPX establishes operational plans for the generators and power grid all over the country, and monitors them in real time in order to quickly respond to any anomalies. This ensures that customers are mitigated from blackouts or brownouts.

KPX provides support for the Korean government’s green energy policies and plans, such as establishing a basic plan for long term electricity supply and demand.

In order to carry out these important functions, KPX has been established on April 2001 in accordance with the Electric Utility Act. It is independent from all electric utilities including KEPCO, and operates the electricity market, the power system, and the real time dispatch in a fair and transparent manner.

KPX is now putting its efforts into demand resource trading, Renewable Energy Certificates (REC), Energy Storage System (ESS), and Smart Grid to strengthen the electricity business platform initiatives and invigorate the national economy.