In a significant step towards expanding its renewable energy portfolio, South Korea’s Ministry of Trade, Industry and Energy has awarded 2,085 MW of wind capacity in the latest tender, surpassing the initial 1.8 GW target. This oversubscribed auction indicates a robust interest in renewable projects within the country, with 1,886 MW allocated to four offshore projects and an additional 199 MW to six onshore ventures. The success of this auction showcases South Korea’s commitment to accelerating its transition to sustainable energy sources. Offshore wind, which represented less than 1% of South Korea’s installed capacity as of late 2023, is poised for transformational growth with a state-set target of 12 GW by 2030.
Some notable winners in this round included Equinor’s 750 MW Firefly/Bandibuli project and Vena Energy’s 500 MW Taean project. Additionally, the Jeonnam region’s 532 MW Anma project, comprising Anma 1 and Anma 2 parks, and Daehan Green Power’s 104 MW Yeonggwang Yawol project were among the awarded offshore capacities. The auction set a ceiling price at KRW176,565 per MWh (US$121.9 per MWh), reflecting the competitive landscape and keen interest from various stakeholders in the renewable energy sector. Achieving the 12 GW target by 2030 requires not only continued financial support but also technological advancements and streamlined regulatory processes to stimulate further development and deployment of wind projects.
Considering the current pace and strategic investments, South Korea stands a viable chance to meet its ambitious offshore wind goals. However, various challenges such as technological hurdles, environmental impact assessments, and community acceptance need careful navigation. Policymakers and industry leaders must also work cohesively to address these issues, ensuring that projects remain on schedule and within budget. With focused efforts and sustained momentum, South Korea could not only meet but potentially exceed its 12 GW offshore wind target by 2030, marking a crucial milestone in the nation’s journey towards renewable energy dominance.
