■ MOU signed for localization of voltage-source HVDC converter valves; synergy expected between LSE's production infrastructure and GE Vernova's advanced technolog
■ Core project of West Coast Energy Superhighway; aims to secure turnkey capabilities and lead the business
LS ELECTRIC is taking decisive steps towards the localization of 'Voltage-Source HVDC (High Voltage Direct Current)', a key technology for the next-generation national power grid.
On the 23rd, LS ELECTRIC announced at the Grand Hyatt Seoul in Yongsan-gu, Seoul, that it had signed a Memorandum of Understanding (MOU) with GE Vernova, a global energy solutions company, for localizing converter equipment for HVDC.
The signing ceremony was attended by LS ELECTRIC Chairman Koo Ja-Kyun, CEO Kim Jong-woo, GE Vernova's President of Electrification, Philippe Piron, Vice President of Grid Integration Systems Johan Bindele, the U.S. Embassy in Korea's Economic Counselor Alexei Kral, and about 50 other officials.
The two companies agreed at this event to actively cooperate in technology to localize the converter valve, a core facility of gigawatt-level voltage-source HVDC, utilizing LS ELECTRIC's HVDC production infrastructure.
Having already achieved localization of HVDC conversion transformers (CTR), LS ELECTRIC plans to embed GE Vernova's advanced technology in converter valves to complete the localization of voltage-source conversion facilities.
HVDC technology converts AC power produced at power plants into high-voltage DC for transmission and then back into AC near the consumer. Compared to traditional AC transmission, it has lower transmission losses, is ideal for underground and submarine cables, and offers excellent economic and stable advantages for large-scale power transmission.
Particularly, voltage-source HVDC is favorable for system stabilization compared to current-source HVDC and is suitable for real-time, bidirectional power flow control, making it advantageous for integrating renewable energy. This technology is critical for realizing the 'West Coast Energy Superhighway' to connect marine and renewable energy produced in the Honam region to the metropolitan area by 2030.
LS ELECTRIC, recognizing the risks associated with relying solely on foreign technologies such as international geopolitical issues and exchange rate fluctuations, aims to rapidly secure technologies related to converter valves and transformers. The goal is to acquire turnkey capabilities in conversion equipment to lead gigawatt-level projects.
To achieve this, both parties will maximize the synergy between GE Vernova's globally proven advanced technologies and LS ELECTRIC's production infrastructure, cooperating closely at each stage to reach goals such as localizing converter valves, securing domestic voltage-source HVDC equipment contracts, and entering the global market.
Since investing 110 billion KRW in 2011, LS ELECTRIC has been promoting the localization of core facilities at the country's first HVDC-exclusive plant in Busan, capable of handling everything from parts receipt to performance testing, assembly, and commissioning.
After signing a 'Global Business Cooperation MOU' with GE Vernova in January last year, LS ELECTRIC has jointly addressed the domestic and international HVDC markets. The company successfully won orders for 24 conversion transformers in the first phase of the East Coast-Metropolitan HVDC project (East Coast-Sin Gapyeong) and all 40 units in the second phase (East Coast-East Seoul).
Chairman Koo Ja-Kyun of LS ELECTRIC stated, “LS ELECTRIC established the first dedicated HVDC plant in Korea and is the only domestic business with experience in the HVDC CTR business. Through this collaboration with GE Vernova, we aim to achieve localization of the converter valve, a key facility of HVDC, to achieve independence in next-generation transmission technologies.”
GE Vernova's President of Electrification, Philippe Piron, commented, “This collaboration marks a new chapter in our long-standing partnership with LS ELECTRIC. By supporting the advancement of voltage-source HVDC technology, we aim to aid Korea's energy transition and infrastructure goals and contribute to building a more resilient and flexible power grid.”
[Supplementary Information 1]
West Coast Energy Superhighway The 'West Coast Energy Superhighway', a 11 trillion KRW project considered a flagship energy policy of the Lee Jae-myung administration, is growing in anticipation within the domestic power industry. Announced early this year as part of the '11th Basic Plan for Electricity Supply and Demand', the project aims to build a total of 620km of submarine transmission networks along the west coast by 2036. The president pledged to advance the original completion goal from 2036 to 2030. The project, driven by HVDC technology, intends to stably supply solar and wind-based renewable energy from Honam to the metropolitan area. It comprises segments from Sin Haenam to Taean and Seo Incheon covering 430 km, and Saemangeum to Taean to Yeongheung covering 190 km. Approximately 4.8 trillion KRW of the 11 trillion KRW project cost is estimated to be allocated for converter equipment. The project will feature voltage-source constructions due to the necessity for integration with diverse distributed power sources like wind and ESS (Energy Storage System), the supply of power to large data centers, and the need for flexible integration with existing grids as well as ease of underground application in urban areas. Voltage-source HVDC offers outstanding capabilities in frequency stabilization, voltage maintenance, and grid recovery, meeting high-quality power demands. It is also favorable for compactness, modularization, and easy installation in urban or constrained spaces. Additionally, while current-source transmission is complex for bidirectional flow, voltage-source transmission is simpler.
[Supplementary Information 2]
Voltage-Source / Current-Source HVDC HVDC can be broadly categorized into current-source (LCC: Line Commutated Converter) and voltage-source (VSC: Voltage Source Converter). From the 1990s to the 2010s, current-source HVDC was introduced domestically. To secure HVDC technology and commercialization capabilities, Korea adopted technology from General Electric (GE), leading to the establishment of the first 300MW HVDC between Jindo and Jeju in 1997, followed by a 400MW bidirectional-capable second HVDC on the same line in 2014. Voltage-source technology began applying in the HVDC between Wando and East Jeju, completed in 2024, with its application recently increasing. The East Coast-Metropolitan HVDC, targeted for completion in 2027, will feature a mix of current and voltage-source systems. Current-source HVDC is efficient for long distances and large capacities, with relatively low initial installation costs. However, it requires large conversion station areas and external devices for reactive power control, with system stability significantly affected by unstable adjacent AC systems, making it unsuitable for intermittent power sources like wind. In contrast, voltage-source HVDC is ideal for short to medium-scale systems and is spreading rapidly as a latest technology. It requires relatively expensive IGBTs but benefits from a small installation footprint, favorable for urban or confined spaces. It also self-regulates reactive power and operates stably in weak grid systems, making it highly suitable for new renewable energies with intermittent output.
[Supplementary Information 3]
LS ELECTRIC's Cooperation with GE and HVDC Business Since being designated as a core technology transfer operator during the joint venture formation of KAPES (Korea Alstom Power Electronics Systems) by KEPKO and GE (then Alstom) for HVDC technology cooperation in 2013, LS ELECTRIC has expanded its business collaboration with GE. In January 2024, LS ELECTRIC signed a business agreement with GE Vernova for joint global market responses. LS ELECTRIC intends to use its high-voltage transformer production infrastructure proactively to expand into transmission and renewable energy markets in the US and Europe. The company plans to extend the transformer production facility at its Busan site to manufacture global HVDC conversion transformers and enhance testing-related facilities, accelerating its global HVDC business efforts. A second production facility, covering 13,223㎡ next to the first in Busan, will include assembly, testing, and welding spaces for complete production processes. Completion is scheduled for September, with mass production starting in October.
[Supplementary Information 4]
GE Vernova GE Vernova is a global energy company comprising Power, Wind, and Electrification business divisions, supported by subsidiary business units. Established on April 2, 2024, through the spin-off of GE's energy-related business units, GE Vernova possesses capabilities developed over 130 years since GE's founding in 1892, leading global power and decarbonization efforts. With headquarters in Cambridge, Massachusetts, GE Vernova operates in over 100 countries and employs more than 75,000 people worldwide.