South Korea has set up a task force to develop a next-generation power grid using AI, the Ministry of Trade, Industry and Energy said on August 8, 2025.

The group includes several government ministries and public utilities such as Korea Electric Power Corp. and Korea Power Exchange.

The initiative follows a call by President Lee Jae Myung to build an intelligent grid that links national power generation, storage, and consumption.

The ministry said the planned grid will use AI to help supply renewable energy and manage rising electricity demand without large-scale infrastructure projects.

Officials added that the project aims to improve power efficiency and enhance energy security.

Second Vice Industry Minister Lee Ho-hyeon, who leads the task force, said the group will connect smaller local power grids to update the national network, and explore new business models in the power market, such as virtual power plants.

🔗 Source: Yonhap News Agency

🧠 Food for thought

1️⃣ South Korea’s AI grid initiative builds on over a decade of substantial smart grid investment

This new task force represents the evolution of South Korea’s long-standing smart grid strategy rather than a completely fresh start.

KEPCO invested $7.18 billion in smart grid technology as early as 2011, with the ambitious goal of achieving universal smart grid implementation by 20301.

The country has been systematically developing this infrastructure for over a decade, using Jeju Island as a test-bed for smart grid technologies and aiming to become “the world’s largest smart grid community”1.

This historical foundation explains why South Korea can now credibly pursue AI-enhanced grids, as they already have the underlying digital infrastructure and operational experience that makes advanced AI integration feasible.

The current initiative leverages this substantial prior investment, positioning South Korea to potentially achieve their 2030 universal smart grid target with enhanced AI capabilities.

2️⃣ The timing reflects growing global tension between AI’s massive power demands and grid optimization potential

South Korea’s focus on AI-powered grids comes as AI technology creates unprecedented electricity demand worldwide.