Wind Energy – Crisis
South Korea’s offshore wind sector is facing a crisis as major developers abandon massive projects like the 2.37 GW Chuja Island site due to soaring costs.
This wave of withdrawals, impacting regions from Jeju to Ulsan, threatens the government’s target of reaching 14.3 GW of offshore wind capacity by 2030.
The Chuja Offshore Wind Power Project halted after Korea Midland Power abandoned the initiative on the 10th. The project aimed to build the world’s largest wind power complex (2.37 gigawatts) off the coast of Chuja Island, Jeju. Its capacity would match two nuclear power plants. With an investment of 24 trillion Korean won, it was planned for completion by 2035.
Industry sources criticize Jeju Province for imposing excessive demands on developers. Developers must sell all generated electricity within Jeju and contribute 130 billion Korean won annually to a ‘resident benefit-sharing fund’ for 20 years.
Norway’s Equinor, which initially explored the project, also withdrew after reviewing these conditions. After two rounds of public offerings, Korea Midland Power, a public enterprise, bid but later stepped back following a feasibility review.
In response, Choi Myung-dong, president of Jeju Energy Corporation, stated: “We are considering dividing the project area into 2–3 zones and revising the benefit-sharing model to a fixed percentage of revenue.”
In Ulsan, the SPC (Special Purpose Company) BadaEnergy, recently began liquidation procedures and plans to return its power generation permit.
BadaEnergy had pursued the Ghost Whale Project, a 1.5-gigawatt offshore wind complex off Ulsan’s coast, with a total cost of 12 trillion Korean won.
Equinor’s ‘Firefly Project,’ aiming to construct a 750-megawatt wind farm off Ulsan by 2030, is also temporarily suspended.
Boryeong City’s offshore wind project in South Chungcheong Province faces delays due to military opposition. The planned site is near a missile test range. Boryeong aims to build a 1.3-gigawatt complex near Hodo, Nokdo, and Oeyeondo by 2030, investing 9 trillion Korean won.
