Stronger market competitiveness perceived overseas

Joon-ho Han ,KEPCO chairman and CEO

Korea Electric Power Corporation (KEPCO) is looking to its Power Line Communication (PLC) business that uses its grid as a new high-growth business area. KEPCO's strategy is based on the company's judgment that morphing into IT can produce big returns. In a special interview on electricity IT for The Korea IT Times March issue, KEPCO chairman and CEO Joon-ho Han stresses that it appears possible to utilize PLC as high-speed information communication network and nurture this field as a next-generation governmental project. PLC is a rapidly emerging technology providing communication links over existing power transmission and distribution networks. The electric power grid has a unique feature in that it constitutes an existing infrastructure networked to billions of private customers as well as businesses. At the same time, it is a large-scale, as well as very integrated infrastructure: crossing the boundaries of homes and buildings, to individual wall outlets, home appliances and electrical equipment. Among the new value added services PLC can provide are remote metering, remote billing, demand-side management, distribution automation and control from a distance. Others are remote security for home and office, intelligent energy and equipment cost-saving services, and 'smart' home automation. Since PLC is a technology that enables communication services to be launched without any new investment in networks, KEPCO can use its grid both for power transmission and for communications, the chairman explains. Mr. Han says KEPCO already plans to utilize its grid as a communication network in connection with its electricity business, having the necessary power line communication technology. At the same time, its has strategies in hand to boost management efficiency in the field of electricity sales such as remote inspection and real-time transactions and the automation of supply of electrical power and control of its demand. Since last November KEPCO has had a project under way to install communication services via its power lines to 1,500 households and plans to commercialize PLC technology and apply it to various fields such as remote inspection, air conditioner control, transformer monitoring and electricity added-service. The chairman forecast it would not be easy for PLC to be competitive in the subscriber home network market, but as long as it could offer the same speeds of existing ultra-fast subscriber market, PLC could be competitive to some degree in a niche area. As PLC is expected to be more competitive in China, Southeast Asia, and Europe where the high-speed infrastructure is fragile, he emphasized that since Korea has a strong edge in this technology, the country could be a player in the world market. Concerned that the domestic electricity market has reached its growth limits, with an eye on the export market, he believes KEPCO can develop a new growth engine from its PLC business. Specifically, by utilizing KEPCO's strong brand image, the company aims to maximize synergy to help advance into overseas markets via consortia of power companies as well as private companies, he explains. As well as Southeast Asia and China were the company already has a presence, KEPCO plans to enter into the Middle Eastern and Eastern European markets, also. Mr. Han emphasized that the quality of Korea's electricity supply is of the highest level.