The Korea Power Exchange Signed an MOU with Merlot Lab to Solve Renewable Energy Volatility Problem in Carbon-zero Era

Merlot Lab | December 13, 2021

The world's first innovative IoT smart lighting system that connects more than 2,000 devices into one scalable mesh network and automatically responds to electric grid's frequency fluctuations in real time has been launched.

The Korea Power Exchange, a government public corporation responsible for power supply and demand management in Korea, signed an MOU with Merlot Lab (CEO So-bong Shin) who developed an IoT smart lighting system as a new frequency control resource to solve the problem of supply volatility of renewable energy, and announced that they would start the demonstration of frequency regulation using IoT smart lighting system on November 25, 2021.

During the joint demonstration period until August next year, the Korea Power Exchange will formulate the Fast DR frequency regulation operation standards and guidelines required for the power system and verify with the demonstration results. Merlot Lab will participate in the demonstration of automatic illuminance adjustment of smart lighting in accordance to frequency regulation operation by using its 4,300 connected lights installed in the Jungbu Complex Logistics Terminal of CJ Logistics.

The IoT smart lighting developed by Merlot Lab is a major breakthrough in smart connected lighting technology as it is a truly scalable, wireless mesh network that can control thousands of light nodes from a single hub, where each and groups of lights can be controlled at 1% illuminance level increment, making it an ideal solution for various frequency regulation demonstrations.  

Despite great merits and potentials, smart connected lightings could not be readily implemented so far as they suffered high installation costs and reliability issues. Merlot Lab's IoT smart lighting system can be implemented by simple drop-in replacement of exiting conventional light with Merlot Lab's IoT light. Unlike other competing smart light solutions, there is no additional cabling, and networking hardware installation required thanks to Merlot Lab's scalable and reliable 100% wireless network solution.

As gradual light illuminance level change of 20~30% from the peak illuminance level does not lead to noticeable perceived illumination level change to human eyes, nor affect work productivity, Merlot Lab's IoT smart lighting can automatically reduce energy load by adjusting light illuminance level by 20~30% as it responds to event signals sent by the grid, making it a great demand-side resources for frequency control. The mesh network implemented by Merlot Lab can bring a revolutionary change in smart lighting.

The amount of electricity currently used for lighting accounts for about 20% of the total electricity consumption in Korea. When the role of frequency regulation of IoT smart lighting systems is successfully demonstrated, it is expected to greatly contribute to resolving the problem of instability in the power system from the increase in the proportion of renewable energy."

An official from the Korea Power Exchange

About Merlot Lab
Merlot Lab is an IoT solution company created by wireless communication and semiconductor experts. It has developed and commercialized mesh network technology that connects more than 2,000 devices into one hub for the first time in the world, and provides industrial IoT solutions and services based on this breakthrough technology. Merlot Lab's technology can drive decarbonization policies and ESG initiatives as ordinary lightings at the customer site can be retrofitted to become flexible resources for smart grid that can support the growth of renewable energy.


Over the last decade, well-intentioned policymakers in Germany and other European countries created renewable energy policies with generous subsidies that have slowly revealed themselves to be unsustainable, resulting in profound, unintended consequences for all industry stakeholders. While these policies have created an impressive roll-out of renewable energy resources, they have also clearly generated disequilibrium in the power markets, resulting in significant increases in energy prices to most users, as well as value destruction for all stakeholders: consumers, renewable companies, electric utilities, financial institutions, and investors.


Over the last decade, well-intentioned policymakers in Germany and other European countries created renewable energy policies with generous subsidies that have slowly revealed themselves to be unsustainable, resulting in profound, unintended consequences for all industry stakeholders. While these policies have created an impressive roll-out of renewable energy resources, they have also clearly generated disequilibrium in the power markets, resulting in significant increases in energy prices to most users, as well as value destruction for all stakeholders: consumers, renewable companies, electric utilities, financial institutions, and investors.

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