Korea Electric Power Corporation, a state-run utilities company, signed a memorandum of understanding with South Korean battery solution provider Kokam and global virtual power plant platform provider Sunverge to advance into the VPP sector using solar power and energy storage systems, the company said Friday.

Virtual power plant, or VPP, is a cloud-based central control system that collects distributed resources for the purpose of reducing consumers’ electricity cost and the cost of buying electricity at peak times for electricity operators.

“This MOU signing will be the basis upon which Kepco will advance into the US’ behind-the-market as well as a turning point for the new industry of electric energy,” said Cho Hwan-eik, CEO of Korea Electric Power Corporation.

The signing took place in California and was attended by Cho, Sunverge CEO Kenneth Munson, a Kokam official along with the Los Angeles Department of Water and Power and National Grid UK.

The US ESS market grew over two-fold to $430 million last year from $280 million in 2015, Munson said.

It is expected to expand 37 percent annually to some $2.8 billion by 2021. 

By Kim Bo-gyung(lisakim425@heraldcorp.com)