All Four Public-Led Projects Using Domestic Turbines Selected
Result of Strengthened Security Criteria This Year
"Clear Signal to Foster Domestic Industry"
Ten 10MW wind turbines are installed in the Jeonnam Offshore Wind Power Phase 1 Complex, located in the public waters northwest of Jaeundo Island, Sinan County, Jeollanam-do. CIP
In the government’s offshore wind power bidding held in the first half of this year, all private projects using foreign turbines were eliminated. In contrast, all public-led projects using domestically produced turbines were selected. This outcome is interpreted as a result of the government strengthening security indicators this year. The wind power industry analyzes that the government has sent a clear signal to the market about its intention to foster domestic industry.
The Ministry of Trade, Industry and Energy announced on September 1 that all four bidders participating in the public-led sector were selected in the offshore wind power competitive bidding held in the first half of 2025. The companies selected in the fixed-price wind power competitive bidding are guaranteed the right to sell the electricity they produce at a fixed price for 20 years, ensuring long-term stable revenue.
The public sector bidding was announced for a facility capacity of “around 500 megawatts (MW),” but the total capacity of the four selected projects is 689 MW. In contrast, in the general sector, where the target volume was set at “about 750 MW,” both companies that submitted project plans were eliminated.
The four public-led offshore wind power projects selected in this round are: ▲ Southwest Offshore Wind Power Demonstration Complex (Korea Offshore Wind Power, 400 MW), ▲ Handong-Pyeongdae Offshore Wind Power (Korea East-West Power and Jeju Energy Corporation, 110 MW), ▲ Dadaepo Offshore Wind Power (Korea Southern Power and Corio Generation, 99 MW), and ▲ Aphae Offshore Wind Power (KEPCO Engineering & Construction, CGO, and Hyundai Engineering & Construction, 80 MW).
Korea Offshore Wind Power, which is leading the largest project, the Southwest Offshore Wind Power project, is a special purpose company (SPC) in which Korea Electric Power Corporation and its power generation subsidiaries have jointly invested 100% of the shares.
Haesong 3 Offshore Wind Power (Copenhagen Infrastructure Partners, 504 MW) and Hanbit Offshore Wind Power (Myeongwoon Industrial Development, 340 MW), which applied for the general offshore wind power bidding, were not selected. While all public sector bidders were selected in this newly introduced public bidding category, all general applicants were eliminated.
Starting from this year’s first half offshore wind power bidding, the government established a separate bidding market for public institutions. Public sector bidders were granted policy-preferred prices reflecting their contributions to security and the supply chain. Incentives were provided for using domestically produced turbines developed through government-supported research and development.
This system was established to enable competition with proven European turbines and cost-competitive Chinese turbines. In Korea, Doosan Enerbility and Unison are each developing large-scale 10 MW wind turbines as part of government research and development (R&D) initiatives.
The Aphae Offshore Wind Power, Dadaepo Offshore Wind Power, and Handong-Pyeongdae Offshore Wind Power projects, which were selected in the public-led offshore wind power category, plan to use Doosan Enerbility’s 10 MW turbines. The Southwest Offshore Wind Power project submitted a plan to use either Doosan Enerbility’s or Unison’s 10 MW turbines.
In contrast, Haesong 3 Offshore Wind Power, which was not selected, planned to use turbines from Denmark’s Vestas, while Hanbit Offshore Wind Power planned to have Unison assemble offshore wind turbines from Germany’s Vensys domestically. The majority shareholder of Vensys is Goldwind, a Chinese turbine company.
The wind power industry interprets the elimination of all private companies as a reflection of the government’s intention to localize the supply chain.
An official from the Ministry of Trade, Industry and Energy explained, “This bidding was conducted in line with the ‘Offshore Wind Power Competitive Bidding Roadmap’ announced in August last year and the ‘Public-Led Offshore Wind Power Bidding Promotion Plan’ announced in March this year, with strengthened security and supply chain evaluations. It reflects the government’s determination to enhance industrial competitiveness while expanding offshore wind power.”
Kim Jungkwan, Minister of Trade, Industry and Energy and former head of marketing at Doosan Enerbility, expressed at a confirmation hearing in July, “I felt a deep sense of frustration seeing even public enterprises prefer foreign products.”
Some analysts believe that the results of this bidding reflect the Lee Jaemyung administration’s awareness of concerns that aggressive expansion of renewable energy could lead to Chinese equipment dominating the domestic market. The opposition party has warned that the rapid spread of renewable energy could cause offshore wind power to follow the same path as solar power.
Some in the wind power industry are concerned that by excluding foreign equipment, the government may actually cause stagnation in the domestic offshore wind power market.
The Ministry of Trade, Industry and Energy stated, “For the unselected capacity from the first half bidding, we plan to continue announcing competitive bidding in the second half and subsequent years, taking into account future bidding demand and other factors. The second half announcement will be implemented after improving the competitive bidding system, reflecting feedback from on-site meetings and briefings with wind power operators and other stakeholders.”
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