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Korea designates 4 special zones for 'distributed energy' to attract advanced industries

Published: 05 Nov. 2025, 16:54

The 36th national energy committee meets in central Seoul on Nov. 5 [MINISTRY OF CLIMATE, ENERGY AND ENVIRONMENT]

The government designated four special zones for distributed energy in different parts of Korea, the climate industry said Wednesday, in a move to attract advanced industries with high power consumption to the areas and promote the use of renewable energy.

The designated areas are each located in Gyeonggi, southwestern South Jeolla, Jeju Island and the southeastern port city of Busan, according to the Ministry of Climate, Energy and Environment.

Distributed energy refers to energy that is generated and consumed locally, rather than being supplied from large, centralized power plants through long-distance transmission lines.

The ministry said the special zones will actively utilize renewable energy and energy storage systems (ESS) and offer electricity at a lower price, enabled by short-distance transmission, to data centers and other advanced industries that require large power consumption.

In addition, the designated areas will conduct various projects aimed at establishing a next-generation power grid using microgrids and ESS, and creating electricity trading business models, the ministry added.

Yonhap