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Released August 23, 2024 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--South Korea will launch its first offshore wind tender in October with the goal of supporting the development of 7-8 gigawatts (GW) of offshore wind capacity.
The auction will be followed by one or more per year in order to reach the required capacity until 2026. The country's Ministry of Trade, Industry and Energy (MOTIE) unveiled its Offshore Wind Power Competitive Bidding Roadmap as the country invests heavily in boosting its renewable energy total, which, at just over 7% of electricity generated, is very low by international standards. More than 72% of that is accounted for by solar power, 18% via hydropower and 8.4% by wind-mostly onshore. As a part of its Green New Deal announced in 2020, the government wants to generate 20% of its power with renewables by 2030. The target set for offshore wind capacity is an ambitious 14.3 GW, coming from a very low base of less than 150 megawatts (MW) today, according to data from the Global Wind Energy Council (GWEC).
The tender process will adopt a two-stage process; the first phase will be an evaluation that "will assess the non-price attributes" of projects with the second devoted to evaluating price attributes. Bidders with the highest total score will be selected. Vice Minister Choe stated that the Roadmap "will help present a stable bid quantity early on, accelerating large-scale investments in offshore wind power and job creation across domestic and overseas firms, while also spurring the establishment of ports and ships and other related infrastructure." Alongside fixed-bottom offshore wind projects, the government will support the rollout of floating windfarms with a tender offer within the same timeframe.
The new bidding process is designed to speed up the development of projects by addressing permitting delays and other regulatory challenges which have crippled the sector. Earlier this summer, Rebecca Williams, global head of offshore wind, GWEC, commented: "Offshore wind is a good news story for South Korea. Our new report shows that 14.3GW of offshore wind can create a huge energy and economic opportunity, revitalizing coastal communities across the country, and playing a role in halting post-industrial decline. Today we are setting out a blueprint to unlock the pathway to offshore wind growth in a way which benefits local communities and stakeholders. Local consensus through education, engagement and trust-building is a crucial first step to rolling out policies for offshore wind development."
Industrial Info is tracking 117 offshore-related projects in South Korea worth almost US$14 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports. These include a growing number of major projects backed by international energy majors. At the end of last year, Danish renewables company Ørsted (Fredericia, Denmark) secured an electricity business license (EBL) from the Ministry of Trade, Industry and Energy for its planned 1.6 GW Incheon offshore windfarm. The license gives Ørsted exclusive rights to develop the windfarm, which will be located 70 kilometers offshore the city of the same name. France's TotalEnergies SE (NYSE:TTE) (Courbevoie, France) and local partners have teamed up to develop the BadaEnergy offshore wind portfolio in South Korea, comprising more than 2 GW of floating and fixed-bottom offshore windfarms off the coast of the Ulsan industrial city and South Jeolla province. This includes the 1.5-GW Gray Whale project, which would be one of the world's largest floating offshore wind developments.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The auction will be followed by one or more per year in order to reach the required capacity until 2026. The country's Ministry of Trade, Industry and Energy (MOTIE) unveiled its Offshore Wind Power Competitive Bidding Roadmap as the country invests heavily in boosting its renewable energy total, which, at just over 7% of electricity generated, is very low by international standards. More than 72% of that is accounted for by solar power, 18% via hydropower and 8.4% by wind-mostly onshore. As a part of its Green New Deal announced in 2020, the government wants to generate 20% of its power with renewables by 2030. The target set for offshore wind capacity is an ambitious 14.3 GW, coming from a very low base of less than 150 megawatts (MW) today, according to data from the Global Wind Energy Council (GWEC).
The tender process will adopt a two-stage process; the first phase will be an evaluation that "will assess the non-price attributes" of projects with the second devoted to evaluating price attributes. Bidders with the highest total score will be selected. Vice Minister Choe stated that the Roadmap "will help present a stable bid quantity early on, accelerating large-scale investments in offshore wind power and job creation across domestic and overseas firms, while also spurring the establishment of ports and ships and other related infrastructure." Alongside fixed-bottom offshore wind projects, the government will support the rollout of floating windfarms with a tender offer within the same timeframe.
The new bidding process is designed to speed up the development of projects by addressing permitting delays and other regulatory challenges which have crippled the sector. Earlier this summer, Rebecca Williams, global head of offshore wind, GWEC, commented: "Offshore wind is a good news story for South Korea. Our new report shows that 14.3GW of offshore wind can create a huge energy and economic opportunity, revitalizing coastal communities across the country, and playing a role in halting post-industrial decline. Today we are setting out a blueprint to unlock the pathway to offshore wind growth in a way which benefits local communities and stakeholders. Local consensus through education, engagement and trust-building is a crucial first step to rolling out policies for offshore wind development."
Industrial Info is tracking 117 offshore-related projects in South Korea worth almost US$14 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports. These include a growing number of major projects backed by international energy majors. At the end of last year, Danish renewables company Ørsted (Fredericia, Denmark) secured an electricity business license (EBL) from the Ministry of Trade, Industry and Energy for its planned 1.6 GW Incheon offshore windfarm. The license gives Ørsted exclusive rights to develop the windfarm, which will be located 70 kilometers offshore the city of the same name. France's TotalEnergies SE (NYSE:TTE) (Courbevoie, France) and local partners have teamed up to develop the BadaEnergy offshore wind portfolio in South Korea, comprising more than 2 GW of floating and fixed-bottom offshore windfarms off the coast of the Ulsan industrial city and South Jeolla province. This includes the 1.5-GW Gray Whale project, which would be one of the world's largest floating offshore wind developments.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
