South Korea's 'acceleration' plan for offshore wind hailed as a shift toward realism

South Korea has launched an offshore wind acceleration plan that reduces its overall target for 2030 but introduces measures intended to ensure that the country ramps up to an aggressive rate of deployment by then.

South Korea now intends to reach a cumulative offshore wind capacity of 10.5GW by the end of the decade, including projects that are either installed or under construction, down from a previous target of 14.3GW.

But the new accelerator plan shows that South Korea expects to ramp up its offshore wind deployment to a rate of 4GW per year by the end of the decade, but maintaining the previous cumulative total of 25GW by 2035.

A ministry statement acknowledged that Korea has made slow progress in putting earlier plans for offshore wind into practice, with little more than 352MW of offshore wind capacity installed so far.

The government flagged a lack of adequate ports and an absence of specialised vessels among the factors that have held South Korea's offshore wind sector back, along with financing challenges, complex permitting procedures and local acceptance issues.

The wide-ranging plan to improve on this was presented by South Korea’s new Ministry of Climate, Energy and Environment, at the head of a government-wide acceleration task force.

The plan broadens the scope of its roadmap for the sector, including clear ambitions relating to supply chain development.

These include expansion of port capacity to a scale that supports the new targets, and promises to harness South Korea's shipbuilding and offshore engineering strengths to develop local supply chains, especially for floating offshore wind.

The Korean government also signalled plans to secure the domestic procurement of at least four vessels able to install wind turbines of up to 15MW.

Funding and prices

The acceleration plan also outlined plans to expand financial support through mechanisms such as a future energy fund.

“We hope that, drawing on the experience of leading offshore wind countries, a permanent public–private governance framework will be established,” commented Jang, who played an advisory role on the plan.

“Such a structure would enable continuous dialogue and help ensure that strategies to develop the industry fully reflect realities on the ground,”

The offshore wind plan also attempts to set a target levelised cost of energy (LCOE) of no higher than 250 Korean won ($0.17) per kWh by 2030, falling to a targeted ceiling of 150 won/kWh by 2035.

Balancing interests

Efforts to streamline permitting procedures will also include a reorganisation of the consulting and consenting process, including as they relate to military operations, by “seeking a balance between security and offshore wind power”.

Offshore wind tenders planned for next year will proceed after a preliminary review of military operational feasibility to resolve uncertainty.

Tender criteria will also be adjusted “to stimulate market competition and induce a reduction in power generation costs”.

In the first half of next year the South Korean government is expected to draft a long-term offshore wind implementation roadmap setting out its plans through to 2035.

A new "offshore wind power promotion team" will handle permitting, conflict mediation, and infrastructure development.

The plan referred to ambitions to streamline the offshore wind tendering system, including a new selection process for future sites, with the overall aim of shortening the average project period from 10 years to within 6.5 years.

Other promised improvements include plans for longer periods for government-backed offtake contracts, as well as new price indexation mechanisms and the construction of energy hubs to reduce duplicate investment in shared transmission networks and connection facilities.

“By addressing critical challenges such as infrastructure limitations, financing barriers, and complex permitting processes, this initiative lays the foundation for sustainable growth and accelerates the country’s transition to clean energy,” commented Juman Kim, Korea Country Manager, for the Global Wind Energy Council (GWEC).

Some analysts gave the package a more guarded welcome.

“BloombergNEF's view is that the plan could help accelerate deployment and possibly lower the cost in a long-run if the action items are implemented effectively,” wrote Analeigh Suh, Korea enegy market analyst with the firm.

“However, realisation of the ambition will depend on how quickly the government executes auctions and strengthen the route to market, enabling projects to turn the pipeline into built capacity”.

R&D pledge

The South Korean government has also stated that it intends to strengthen research and development support, including the development and demonstration of domestically produced 20MW rated turbines and construction of a 100MW-scale floating demonstration facility.

Plans include introduction of a "wind income model" that shares offshore wind revenue with local communities, aiming to increase public acceptance.

The plan was unveiled six months after the election of President Lee Jae-myung, who campaigned on promises of an “energy expressway” to bring power from offshore wind to industrial hubs.

Climate, energy and environment minister Kim Sung-hwan described the new offshore wind power plan as an action plan that “practically solves necessary tasks on the ground by using the next five years as a period to establish a foundation for the spread of offshore wind power”.

"The government will take responsibility for improving the entire cycle, including port, ship, finance, and permit support, to strengthen the domestic industrial ecosystem and reduce the burden of citizens' electricity bills,” he said

"We will work closely with ministries, local governments, and industry to help Korea's offshore wind industry lead the Asia-Pacific market."