South Korea launches new offshore wind tender
Country is aiming to install over 18.3GW of offshore wind capacity by 2030, recently passing legislation to boost deployment
South Korea is launching an auction for 1.25GW of new offshore wind capacity in the first half of 2025, although an analyst warns that a new security index adds further layers to a system already "riddled by complexity."
The auction will focus on fixed-bottom projects, with 750MW offered through a general bidding market and the other 500MW reserved for projects majority owned by South Korean public entities.
One gigawatt of solar capacity will also be auctioned as part of the round.
Announcing the auction yesterday, the Ministry of Trade, Industry and Energy (MOTIE) said that wind power tenders will be held twice annually. Floating offshore wind and onshore wind will feature in a round later this year.
The upcoming auction will implement an index that will consider security elements of the power generation facility and energy supply, said the ministry. Developers can also gain preferential prices by using state-backed wind power technology.
The ceiling price for fixed-bottom offshore wind in the auction is KRW 176,565/MWh ($128.7/MWh) – the same as last year.
MOTIE said that, given the demand for green power from RE100 companies – referring to the global corporate clean power initiative – it will continue to operate a Power Purchase Agreement brokerage market introduced previously on a pilot basis. This will allow companies to match with power plants selected in the auction.
South Korea aims to install 14.3GW of offshore wind capacity by 2030.
Simon Engfred, APAC lead at offshore wind intelligence firm Aegir Insights, said that “while the auction is another positive step in the implementation of the auction roadmap from 2024, it also adds new layers of possible complications to a system already riddled by complexity.”
The “prioritisation of public-led projects” could he said be seen as a “protectionist move, where domestic public-sector involvement will become a prerequisite for participation in the market.”
“Secondly, the industry has been calling for clearer assessment criteria, but these have not materialised,” adding that the new security index “adds renewed complexity.”
The tender comes amid broader political upheaval in South Korea. The country is set for a general election on 3 June to replace Yoon Suk Yeol, who was removed as president in December after a shock move to place the country under martial law. The country has seen three acting presidents since then.
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