South Korea has initiated a new tender for the development of 2.2 gigawatts of offshore wind capacity. This tender includes 500 megawatts allocated for floating wind projects and is designed to accelerate the country's renewable energy plans.
Tender Details and Capacities
The Ministry of Environment, Energy and Climate Change of South Korea has launched the second fixed-price tender for offshore wind energy through the Korea Energy Agency. This round of the tender encompasses approximately 1.7 gigawatts of fixed-bottom offshore wind capacity, divided into two sections: 1.4 gigawatts for conventional projects and 300 megawatts for public projects. Additionally, another 500 megawatts is allocated for floating wind projects.
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Price Cap Reductions and Their Impacts
This tender follows a previous tender of 1.8 gigawatts, bringing the total volume of offshore wind tenders in South Korea for 2026 to approximately 4 gigawatts. The government has also reduced the price caps for fixed-bottom and floating wind projects. The price cap for fixed-bottom wind projects has been lowered to 168.937 won (0.125 USD) per kilowatt-hour, reflecting a 1.34% decrease from the previous round. For floating wind projects, the price cap has been reduced to 174.003 won (0.129 USD) per kilowatt-hour, representing a decrease of 0.63%.
This price reduction comes as developers are concerned about rising construction and financing costs, with some industry stakeholders calling for the previous prices to be maintained. Seoul is also considering extending future fixed-price contracts from 20 to 25 years to enhance investment certainty and facilitate project financing. The latest tender aligns with the government's offshore wind energy roadmap presented in June, which aims to achieve approximately 28 gigawatts of competitive tenders by 2030 and around 55 gigawatts by 2035.
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