Commercial

LG Energy Solution Vertech Emerging as a Strong Market Player in the US ESS Market

Published in the Seoul Economic Daily. Article translated from Korean.

  • Interview with Jaehong Park, President of LG Energy solution Vertech
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  • Focus on advancing IT capabilities such as AI introduction

Seoul, Korea, July 23, 2023 –

LG Energy Solution Vertech, established by LG Energy Solution to target the US energy storage system (ESS) market, is expanding its position by winning large-scale projects one after another in the year since its launch. The company provides integrated solutions in the field of ESS construction and management and is emerging as a ‘strong market player’ in the local renewable energy market.

Jaehong Park, head of LG Energy Solution Vertech, said in a video interview with the Seoul Economic Daily on the 23rd, “We have been producing full-fledged business results since our launch, including securing a large-scale project in the US worth more than 1 trillion Korean won. We will grow into a leading Energy as a Service (EaaS) company.”

LG Energy Solution entered the ESS system integration (SI) business by establishing LG Energy Solution Vertech through the acquisition of NEC Energy Solutions in the United States in February of last year. “Vertech” is a compound word of ‘Vertex’, which means the highest point, and ‘Technology.’ The combination means that the company is a market leader in ESS leveraging LG Energy Solution’s battery technology. Going beyond simple battery supply, it aims to secure business competitiveness by directly building and managing large-scale ESS.

Thanks to the growth of the US eco-friendly energy market, LG  Energy Solution Vertech’s value has soared. Under the Biden administration, state governments are also expanding solar or wind power generation to solve power problems. According to Wood Mackenzie, a global energy research institute, the North American ESS market is expected to grow rapidly from 12GWh in 2022 to 103GWh in 2030.

“The clean energy market is growing rapidly as the US Inflation Reduction Act (IRA) is implemented,” said Park. This means that as the number of solar power plants increases, the importance of ESS, which compensates for the difference in power generation according to weather and time, increases.

The advantage of LG Energy Solution Vertech is that it simplifies the ESS project process. “Often when developing ESS projects the battery supplier and integrator are separate companies, so there have been frequent cases where the construction was delayed or the operation was suspended due to communication challenges,” said Park. “Since LG Energy Solution Vertech takes on both roles, the client can approach the project with peace of mind,” he explained. The direct supply of batteries from LG Energy Solution, which account for more than 50% of the ESS project cost,  also enables LG Energy Solution Vertech to respond to customer needs in a timely manner.

Park plans to focus on upgrading the energy management system (EMS) that supports LG Energy Solution Vertech projects for long-term maintenance and project management. He said, “Energy storage projects operate for upwards of twenty years, so ensuring that our software that can excel for the life of the project is important. We are building a business that  truly supports our customers.”

Click here to read the article in Korean.

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