Kepco pioneers new smart grid business model

South Korea will raise electricity prices to fund $25 billion investment in smart grids that carefully monitor the supply and demand for electricity to eliminate waste

South Korean utility Kepco said it will introduce new business models nationwide based on smart grid power delivery by 2015. The plan builds upon a pilot programme on the island of Jeju which concluded in May 2013. Kepco vice-president Hwang Woohyun told delegates to the World Energy Congress that most investment would come from the private sector, but about $2.8bn would come from the government."For that heavy investment, we will need to increase the electricity price - customers won't like that. They will prefer to stick to the old ways," he said. "We have to introduce intelligent operations systems. It will require a lot of budget, and we are considering how to ensure return on investment