KEPCO Boosts Offshore Wind Power Business... Partners with 44 Domestic Companies

MOU Signed with 44 Offshore Wind Companies Including Doosan Heavy Industries

[Sejong=Asia Economy Reporter Kwon Haeyoung] Korea Electric Power Corporation (KEPCO) is leading the revitalization of the offshore wind power industry by partnering with domestic companies. Based on continuous development of core offshore wind power technologies and accumulated power generation experience both domestically and internationally, KEPCO plans to expand the domestic industry and jointly pioneer overseas offshore wind power markets in the future.

According to KEPCO on the 24th, recently it signed a Memorandum of Understanding (MOU) for cooperation to revitalize the offshore wind power industry with 44 domestic offshore wind power companies including Doosan Heavy Industries & Construction, Korea Electric Wire Corporation, and Samkang M&T.

This is to activate the industry through bold investments and mutual cooperation of offshore wind power companies amid the increasing importance of renewable energy for carbon neutrality by 2050. KEPCO and domestic offshore wind power companies agreed to continuously cooperate on ▲technology development for the advancement of offshore wind power equipment industry ▲contributing to local economy and job creation through offshore wind power infrastructure establishment ▲utilizing KEPCO’s global network for joint entry into overseas offshore wind power projects ▲sharing information among domestic offshore wind power-related companies.

KEPCO President Kim Jong-gap stated, "Based on KEPCO’s large-scale overseas project experience, high-level transmission and distribution technology, and abundant research and development (R&D) assets, we will play a pioneering role in the development of the domestic offshore wind power industry."

KEPCO is currently promoting offshore wind power projects totaling 2.7GW in scale, including 1.5GW in Sinan and 1.2GW in the southwestern region of Jeonbuk. To this end, since December 2007, it has been developing core offshore wind power technologies such as 'suction bucket technology' and 'offshore wind power integrated installation system.' Suction bucket technology is a rapid installation technique where a large steel pipe is placed on the seabed, and water inside the pile is discharged using a suction pump, utilizing the pressure difference inside and outside the pile to embed the foundation into the ground. This can reduce manufacturing and installation costs by more than 30% compared to the existing jacket method. Another advantage is that each offshore wind turbine can be installed within one day.

KEPCO plans to lead the domestic offshore wind power projects by utilizing the technology development and know-how it has continuously pursued and then jointly pioneer overseas markets with domestic companies.

So far, KEPCO has gained experience in project development, construction, and operation by participating as a power producer or developer overseas. Representative examples include the Jordan Fujeij Wind Power Project (89.1MW), which KEPCO invested 100% equity in and solely managed from development to construction and operation, and the large-scale wind power complex in China (1017MW), which has been successfully operated for more than 15 years.

The global offshore wind power market is also expanding. According to the Global Wind Energy Council, the cumulative offshore wind installation capacity in 2019 was 29,136MW, a 26.7% increase from the previous year (22,997MW). As offshore wind power facilities expanded, the new installation capacity in 2019 was 6,145MW, about three times that of 2018 (2,296MW). The International Energy Agency (IEA) forecasts that the cumulative offshore wind power capacity will reach 340GW by 2040, growing at an average annual rate of 13%.

KEPCO stated, "Offshore wind power projects require large-scale investment and are heavy, large-scale industries that are being promoted mainly by large utilities with financing and project management capabilities worldwide," adding, "KEPCO expects to lead the domestic offshore wind power industry by leveraging its domestic and international wind power project experience and know-how."