US utilities seek South Korean transmission expertise for power grids
The Korea-US Power Grid New York Forum, co-hosted by Dealsite and Mayer Brown at the Mayer Brown auditorium in Manhattan on September 29, brought together approximately 100 energy industry experts to address a deepening infrastructure bottleneck caused by the rapid expansion of artificial intelligence data centers across the United States, according to Dealsite.
Infrastructure Bottlenecks and Surging Power Demand
American power grids face a triple threat of aging infrastructure, fossil fuel plant closures, and a severe shortage of core equipment as power consumption accelerates. Michael Hyun, senior vice president and chief commercial officer at PSEG, summarized the core challenges facing the American power industry as resource adequacy and economic viability. During the forum’s first panel discussion, Hyun noted that while power demand grows rapidly due to artificial intelligence, expanding supply remains difficult because of recent fossil fuel plant retirements, underperforming northeast offshore wind projects, and limited domestic experience with new nuclear construction. Transmission and distribution networks require massive capital injections, but utilities must weigh these investments against potential electricity rate hikes that trigger intense political resistance, particularly in states like New Jersey.
To overcome domestic supply gaps, American utilities are turning to South Korean power enterprises with established ultra-high voltage expertise. Hyun highlighted South Korea’s world-class standing in transmission and nuclear energy, pointing specifically to the country’s extensive experience with 765kV transmission networks. While few US utilities possess 765kV operational backgrounds, Korea Electric Power Corporation accumulated substantial expertise building its domestic grid. Cha Seung-tae, head of the KEPCO Power Grid Research Institute, explained during the panel that unlike South Korea’s grid—which historically expanded to balance power generation with distant demand centers—the United States must simultaneously replace aging assets and connect massive new loads driven by artificial intelligence data centers.
KEPCO currently provides technical consulting for 765kV transmission projects to American utilities such as PSEG, validating its engineering, procurement, and construction capabilities and stable grid management. Cha stated that KEPCO is reviewing customized transmission network development and new transmission tower designs suited for local US conditions. Short-term priorities involve enhancing existing grid efficiency through reconductoring and dynamic power control, while long-term strategies require high-capacity, long-distance transmission networks utilizing 765kV and high-voltage direct current systems.
Pandemic Shortages Forge Ties with Korean Manufacturers
Supply chain fractures during the COVID-19 pandemic catalyzed deeper commercial relationships between American utilities and South Korean manufacturers. PSEG turned to overseas markets to source scarce transformers and circuit breakers, establishing initial commercial ties with suppliers like Taihan Cable & Solution. Hyun noted that this period of equipment scarcity forged durable trust, leading PSEG to explore broader cooperation with South Korean entities in 765kV transmission and nuclear energy. PSEG is currently evaluating opportunities to deploy new nuclear reactors at existing nuclear sites, prompting discussions with KEPCO and Korea Hydro & Nuclear Power regarding potential partnerships.
Local Execution Strategies by LS Electric and Taihan Cable
South Korean equipment manufacturers are expanding beyond simple component export to act as comprehensive project partners in the American market. Andrew Urda, marketing strategy vice president at LS Electric America, attributed the company’s US growth to rigorous quality control and strict adherence to delivery schedules. LS Electric projects its US shipments to surpass $1.3 billion this year. The company secured its position in the US supply chain by preemptively holding local inventory during the pandemic, allowing it to supply circuit breakers and frequency converters when American buyers faced severe shortages. Urda emphasized that meeting delivery commitments remains a vital competitive edge in the hyperscale data center market.
Taihan Cable is scaling up its local execution capabilities around extra-high voltage and high-voltage direct current cable systems. Kim Sang-joon, vice president of Taihan Cable’s US subsidiary, outlined a strategy that moves beyond cable delivery to encompass engineering, installation, testing, and commissioning across the entire project lifecycle. The company is actively reviewing plans to expand local manufacturing facilities in the United States. Kim emphasized that localization extends beyond constructing factories to include local engineering, product management, and on-site field services, noting that the United States functions as a collection of diverse regional markets with unique technical requirements rather than a single unified jurisdiction.
Team Korea Lifecycle Collaboration Strategy
KEPCO is spearheading a Team Korea strategy in the United States, mirroring the collaborative export model deployed during the UAE nuclear project by unifying domestic corporate and institutional capabilities. Cha explained that the initiative involves participating in American utility projects from the initial planning and design phases to identify technical specifications and long-term demand early. By combining South Korea’s manufacturing prowess with localized US production bases established by firms like Taihan Cable and LS Electric, the industry aims to compress procurement lead times and project delivery schedules. The long-term objective is participation across the entire project lifecycle—covering procurement, planning, engineering, construction, operation, and project financing.
Panelists agreed that securing manufacturing production slots amid ongoing equipment shortages remains a decisive variable for project execution. Hyun noted that as the bargaining power between suppliers and buyers fluctuates with market conditions, fostering long-term trust is essential for overcoming regulatory hurdles and addressing community resistance regarding infrastructure costs and electricity pricing.