South Korea’s KPX is procuring storage projects seeking 1.1 GW/6.6 GWh capacity on the mainland
Bidders must disclose major equipment origins and demonstrate domestic manufacturing, maintenance and spare-parts capabilities as part of the non-price evaluation
A separate tender seeks 80 MW/480 MWh of standalone ESS for Jeju; developers will be able to choose 15-year or 25-year contracts
South Korea’s Korea Power Exchange (KPX) has launched competitive bidding for 1.1 GW/6.6 GWh of new energy storage system capacity under its 2026 ESS Central Contract Market, for the mainland. A separate tender calls for 80 MW ESS capacity in Jeju Island. All selected projects will need to be completed by February 2029.
This is the third ESS Central Contract Market auction in South Korea as part of the country’s 11th Basic Plan for Electricity Supply and Demand, a roadmap covering 2024 to 2038.
Under this plan, the government estimates a need for 23 GW of long-duration ESS by 2038, comprising 22.5 GW on the mainland and 0.5 GW in Jeju. The capacity will be secured through BESS, other storage technologies and pumped hydro.
The Ministry of Climate, Energy and Environment (MCEE) said that from 2023 through H1 2026, the government opened the Central Contract Market three times and selected ESS power generation operators with a total capacity of 1,196 MW. This includes 563 MW procured under first, and 565 MW in the second auction. In the third auction, the capacity has increased to GW-scale.
Under the third ESS auction, the announced procurement volume for the mainland will cover projects of more than 10 MW/60 MWh and less than 100 MW/600 MWh. Bids will be conducted in 1 MW/6 MWh units.
KPX said the tender is intended to support ESS deployment in areas where grid conditions indicate a need for storage.
Eligible projects must be capable of connecting to designated system-management substations or substations where the need for ESS connection has been identified. Projects seeking connection at substations where grid access is expected to be difficult because of factors such as insufficient bays or spare capacity may be excluded from the selection process, according to KPX.
The notice lists target substations across several regions of mainland South Korea, including Jeonbuk, Jeonnam and Gwangju, parts of Gangwon, and parts of Gyeongbuk, among others.
The procurement is aimed at newly installed standalone ESS facilities. Facilities that have participated in other schemes, including the renewable portfolio standard, or have received subsidies are not eligible.
KPX has also set technical and performance requirements for participating projects. ESS facilities must provide at least 383 charge-discharge cycles per year, equivalent to more than 5,745 cycles over the 15-year trading period, while the required warranty level is at least 70% after 15 years. The notice also requires operating efficiency of more than 65% for 15 years.
Projects must comply with Korean technical, grid-interconnection and safety requirements, including standards covering batteries, power conversion systems, fire safety and grid-forming or frequency-response functions.
The tender includes domestic-industry contribution and supply-chain stability among its non-price evaluation criteria. Bidders will be required to disclose the country of origin of major equipment and demonstrate domestic manufacturing, maintenance and parts-supply capabilities.
The notice also requires capabilities for energy management system-based remote monitoring and control, frequency response and automatic generation control for the system.
For Jeju, the KPX is procuring 80 MW/480 MWh of new standalone ESS, with individual projects ranging from more than 10 MW/60 MWh to 40 MW/240 MWh.
Developers can choose between 15-year and 25-year contracts. Projects under the 15-year contract must achieve at least 395 charge/discharge cycles a year (5,925 over 15 years), while 25-year projects must achieve 730 cycles a year (18,250 over 25 years).
The 25-year option is available to ESS systems capable of two charge-discharge cycles per day, supporting long-life, high-cycle storage needed to manage Jeju’s high share of wind power and enable nighttime charging, explained the ministry.
KPX announced both the tenders on September 22, 2026. The bidding process will begin with bidder registration on September 28, 2026. The deadline for bid proposals is November 4, 2026.
