The second round of the distribution-grid ESS installation support program will proceed in August 2026. Korea’s Ministry of Climate, Energy and Environment announced the results of round 1 on July 10, selecting 9 operators including VPP Lab, LG Energy Solution, KEPCO KDN, SK Eternix, HD Hyundai Electric, Gridwiz, Korea East-West Power, Korea Midland Power, and Hyundai Engineering & Construction. In round 1, 128MW/640MWh of ESS will be installed across 32 distribution lines, enabling early grid connection of 182.4MW of solar capacity currently waiting to connect.
Key News Facts
The government chose an approach of investing KRW 558.6 billion in national funding from 2026–2030, attaching ESS like a buffer to raise existing distribution-grid capacity without expanding the distribution lines themselves. The round-1 standard formula is that installing 4MW/20MWh of ESS per distribution line enables an additional 5.7MW of waiting solar capacity to connect. The goal is to deploy approximately 700MW of ESS by 2030, connecting an additional 1GW of renewable energy and securing an additional 1,350GWh/year (average 3.7GWh/day) of solar generation. The August round 2 covers roughly 50 mainland and 7 Jeju distribution lines, selecting around 20, and starting this round encourages market entry of next-generation batteries with long duration, long cycle life, and fire safety.
Mechanical-Design Impact Analysis
Distribution-line-attached ESS has different installation conditions from large ESS built on power-plant or substation sites. Container-type racks are often installed on narrow sites near roadsides or utility poles, making foundation load conditions and access-passage width far more constrained than for large ESS. In addition, the long-duration, long-cycle-life batteries required by this round are typically LFP-based, which tends to be heavier than nickel-based chemistry, so the increased per-rack load on the same site footprint must be reflected at the foundation-design stage. Also, since fire-safety requirements are explicitly stated, rack-to-rack spacing and firewall placement must satisfy thermal-runaway-propagation-prevention standards in addition to the pinch-point-prevention requirements under Korea’s Occupational Safety and Health Act, and the narrower the site, the greater the potential for these two requirements to conflict.
The battery-chemistry mix from Round 1 provides the real basis for Round 2 load design. Per Economy Times (Korea, July 10, 2026), 66% of the Round 1 allocation (about 420MWh) went to Samsung SDI’s integrated product ‘SBB 1.5,’ which uses high-nickel NCA prismatic cells. LG Energy Solution supplied its own LFP batteries for 22% of the volume (7 distribution lines, 140MWh) and was the only one of the 9 awarded operators to secure a 20-year VPP operator status.
SK On handled 12% (4 lines) with its LFP pouch-cell containerized product ‘Grid On.’ NCA-based products dominated Round 1, but since Round 2’s long-duration, long-life battery requirement typically favors LFP chemistry, the cell-chemistry mix in Round 2 awards may shift toward LFP (estimated). LFP has lower volumetric energy density than NCA, so achieving the same capacity (MWh) requires a larger cell volume and rack footprint — a factor that directly affects foundation slab area and access-aisle width on constrained distribution-line sites.
LG Energy Solution’s 20-year sole VPP operator status also has design implications. When a single operator is responsible for 20 years of ESS commercial operation, long-term maintenance access and component-replacement clearance must be secured from the initial design stage, and this should be reflected in the design margin specified at order time. Round 2’s operating-contract term and maintenance requirements are not yet disclosed pending the official announcement (confirmation needed).
Spec Comparison Table
| Item | Round 1 (2026.7) | Round 2 (2026.8, planned) |
|---|---|---|
| Target distribution lines | 82 applied → 32 selected | ~50 inland + 7 Jeju → ~20 selections |
| Installation scale | ESS 128MW / 640MWh | Undetermined (undisclosed) |
| Standard scale per line | ESS 4MW / 20MWh | Same standard expected (estimated) |
| Battery-type policy | No restriction (NCA 66% / LFP 34%) | Preference for long-duration, long-life, fire-safe batteries; LFP share expected to grow (estimated) |
| Operating contract term | Up to 20 years (for sole VPP operator) | Undetermined (undisclosed) |
The per-line installation scale and exact battery-spec scoring criteria for round 2 remain undisclosed pending the official announcement, and require confirmation after field measurement.
Design Reflection Checklist
- Re-check foundation slab design for rack loads as the LFP share grows
- Meet rack spacing, firewall layout and pinch-point prevention together on narrow sites
- Secure maintenance access and part replacement routes for 20 years of operation
- Confirm the operating contract period and maintenance requirements when the 2nd call is announced
One-line summary: Because the round-2 distribution-grid ESS program places heavy long-duration batteries on narrow sites, the key is a foundation design that simultaneously satisfies rack loading and thermal-runaway-propagation spacing within site constraints.