[Feature] South Jeolla Renewable Energy with Sunlight and Wind… ①Emerging as a Hub of the Energy Industry

Focus on Solar Power Industry in the Mid-2000s
Large-Scale Investments in Sinan County and Other Areas
Low Land Prices and Population Decline as Key Factors
Expansion of Energy Industry with Offshore Wind Power
Increasing Facilities to Achieve 30GW Offshore Wind Power Goal

A large-scale solar power complex and nearby onshore wind power facilities are located in the salt fields of Baeksu-eup, Yeonggwang-gun, Jeollanam-do. Photo by Shim Jinseok

South Jeolla Province is focusing its efforts on developing a semi-permanent eco-energy industry that utilizes solar and wind power. Traditionally known for its agricultural, fishery, and livestock industries, South Jeolla is now attempting to transform its industrial ecosystem and has expressed its determination to become an "energy-centered province." Although there are clear limitations in terms of human resources and technology, the province aims to become an energy powerhouse on par with oil-producing countries in the Middle East by converting its abundant natural resources into energy.

◇The Beginning of Renewable Energy in South Jeolla

The renewable energy industry in South Jeolla began to take off in the mid-2000s, during the administration of the late President Roh Moo-hyun. As the global climate crisis made carbon neutrality a top priority, South Jeolla drew attention as an optimal location for renewable energy operations such as solar power, due to its high levels of sunlight and abundant unused land.

Initially, solar facilities were limited to small-scale installations on individual homes. However, through the Lee Myung-bak administration and into the Moon Jae-in administration, which advocated for a nuclear phase-out, policies such as the "Energy New Industry Development Strategy" and "RE100, Carbon Neutrality 2050" led to a rapid increase in solar installations in South Jeolla.

The completion of a 24MW solar power plant in Jido-eup, Sinan County in 2008 marked the beginning, and large-scale solar power complexes were subsequently established in Yeonggwang, Yeongam, Haenam, Goheung, Jangheung, and Muan. This was a signal flare for the industry.

As of the end of last year, there were a total of 38,142 permits for solar power generation in the 22 cities and counties of South Jeolla, with a total generation capacity of 13,850MW, demonstrating the rapid expansion of the solar-related industry.

◇Number One in Solar Power Nationwide

Ironically, solar power gained particular attention in South Jeolla due to a combination of factors: the region's underdeveloped industrial structure, low land prices, declining population, and aging demographics.

The annual average sunshine duration in South Jeolla is estimated at 3,191 hours. The greater the total sunshine duration, the higher the potential for solar power generation, and South Jeolla's annual sunshine meets the ideal conditions for solar installations.

Geographically, South Jeolla has relatively few high mountains and is characterized by flat fields and farmland. In addition, significant areas of tidal flats and salt farms are formed along the coast.

Moreover, these lands were priced lower than those in other regions at the time. According to data from Statistics Korea and the Ministry of Land, Infrastructure and Transport, the average land price in South Jeolla from 2004 to 2007 was between 20,000 and 40,000 won per square meter. In contrast, land prices in industrial cities such as Mokpo, Yeosu, and Suncheon ranged from about 50,000 to 150,000 won per square meter, while in Hampyeong, Haenam, Jangheung, and Yeonggwang, prices were only around 10,000 to 20,000 won. For farmland or forest land, prices were even lower, at 5,000 to 20,000 won per square meter.

Considering that 70% of the cost of installing solar facilities is spent on securing land, South Jeolla was truly a gold mine. This is reflected in the fact that areas with the highest permitted generation capacity are concentrated in Sinan (3,176.9MW), Haenam (1,809.2MW), Goheung (1,341.3MW), and Yeonggwang (1,202.5MW).

The installation cost for large-scale commercial solar facilities (100kW) is generally known to be about 1 million won per kW. The resulting annual revenue is estimated at about 13 million to 15 million won. The payback period for the investment is roughly 6 to 10 years.

Although solar power generation decreases over time, low land prices played a significant role in offsetting this disadvantage. In addition, with many abandoned lands and unused salt farms due to aging and population outflow, solar power has become the best investment option in South Jeolla.

◇Rising Offshore Wind Power

South Jeolla is now shifting the focus of its renewable energy development from land to sea. By transitioning from sunlight to wind, the province aims to further expand its power generation capacity. South Jeolla recently announced its goal of developing "30GW of offshore wind power" and is steadily proceeding with the necessary processes.

Recently, the Ministry of Trade, Industry and Energy's Electricity Commission granted additional permits for seven offshore wind power projects along the west coast (including Blue Jaeun, Blue Imja, Blue Shini, Blue Bigeum 1 and 2, K-Wind Power, and the Yi Sun-sin 1 Project), bringing the total permitted generation capacity in South Jeolla to 21.3GW. Of the approximately 34.8GW of permitted generation nationwide, South Jeolla accounts for 61%.

By region, Sinan County has the highest target at 8.2GW, followed by Yeosu at 9GW, Goheung at 4GW, Yeonggwang at 5GW, Jindo at 2.3GW, Wando at 1.2GW, and Haenam at 0.3GW, with projects underway to meet these targets.

South Jeolla also has growth potential in offshore wind power, with stable wind speeds (7.2m/s) and shallow water depths (less than 40m). In Sinan, a system has already been established to distribute profits from offshore wind power to local residents, ensuring public benefit. This success is boosting confidence that the expansion of offshore wind power will help revitalize the local economy and achieve balanced regional development. South Jeolla has also announced plans to establish a forward base to distribute renewable energy generated from solar and offshore wind power nationwide.