Wind Energy – South Korea
South Korea has officially launched its first-half (H1) wind energy auction for 2026, underscoring the country’s steady progress in transitioning beyond the Renewable Portfolio Standard (RPS) scheme toward a more structured and competitive market system.
The latest auction introduces 1.8 gigawatts (GW) of new capacity, spanning both fixed-bottom and floating offshore wind projects. Central to this round is a dual-track auction design.
One segment, led by the government, is designed to reduce risks associated with early-stage offshore developments while reinforcing domestic supply chains. The second, an open market track, preserves competitive dynamics across both offshore and onshore wind sectors.
The evaluation framework continues to place equal weight on price and non-price criteria. This approach highlights the growing importance of factors such as industrial contribution, grid readiness, and community acceptance, alongside traditional cost competitiveness.
The inclusion of price caps and targeted incentives—particularly for publicly led initiatives and research-driven turbine technologies—signals the government’s intention to shape market outcomes while still encouraging innovation.
The auction also introduces stricter participation requirements. Developers must now demonstrate compliance with measures such as Environmental Impact Assessments (EIAs), Evidence-Based Licensing (EBL), and detailed port utilization plans.
Coupled with the availability of 20-year Power Purchase Agreements (PPAs), these requirements align offshore wind deployment with broader national priorities, including energy security, industrial development, and supply chain localization.
Overall, this auction round sends a strong signal about the direction of South Korea’s next phase in renewable energy development, with offshore wind positioned as a central pillar of that strategy.
