The Shinan Uido offshore wind farm, a large-scale project funded entirely by domestic capital, is officially underway.
The Ministry of Climate, Energy and Environment held a groundbreaking ceremony on July 16 at the Shinan National Sports Center in Gwangju, Jeollanam-do. The project aims to establish a 390MW offshore wind power complex southeast of Uido in Shinan County, with a total investment of approximately 3.4 trillion won, targeting commercial operation by January 2029.
This initiative marks the first large-scale offshore wind project in South Korea to be developed solely with domestic capital. It will also be the first project in the country to install 15MW turbines. The complex will consist of 26 turbines, expected to generate about 1,062 GWh of electricity annually, enough to power approximately 300,000 households.
Key participants in the project include Hanwha Ocean, Korea Midland Power, SK Eteronics, and Hyundai Engineering & Construction. The ownership structure comprises 26% for Hanwha Ocean, 19% for Korea Midland Power, 10% for SK Eteronics, 5% for Hyundai Engineering & Construction, and 40% for the Future Energy Fund.
The Shinan Uido offshore wind farm has been selected as the first investment project of the National Growth Fund, securing a substantial financing base. Of the total project cost of 3.4 trillion won, approximately 40%, or 1.3 trillion won, will be funded through the National Growth Fund and the Future Energy Fund.
Domestic supply chain participation is also a notable feature. Domestic companies will be involved in key components such as substructures, underwater cables, installation vessels, and offshore substations, excluding the turbines. Hanwha Ocean will participate in the installation vessel and offshore substation, Hyundai Steel Industry will handle the substructures, and LS Cable will manage the underwater cables. Hanwha Ocean will also construct a turbine installation vessel worth 800 billion won for the project.
Community involvement is being promoted as well. The project will allow residents to participate and share in the benefits through community funds. The government expects this approach to foster the domestic offshore wind industry ecosystem and promote regional coexistence.
The Shinan Uido offshore wind farm signifies a shift in South Korea's offshore wind industry from pilot projects to large-scale initiatives. Given the high initial investment and risks associated with permits, financing, and community acceptance, this project, combining policy financing and domestic supply chain participation, could set a precedent for future large-scale projects.
Minister of Climate, Energy and Environment Kim Sung-hwan stated, "The Shinan Uido offshore wind farm is the first large-scale offshore wind project in South Korea funded entirely by domestic capital, and it is a key initiative that will drive the supply of clean energy necessary for the era of electric power and strengthen the domestic industrial ecosystem. We will actively support this project to ensure it proceeds as planned and contributes to achieving the 10.5GW construction target by 2030, as well as providing stable power supply for the three mega-projects in the Honam region, including AI data centers and semiconductors."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.