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129 days ago

SOUTH KOREA UNVIELS UPDATED OFFSHORE WIND POWER ROADMAP

Industry News

Source - reNews - South Korea lays out new offshore roadmap

South Korea's Vice Minister of Trade, Industry, and Energy, Namho Choe, presided over a conference with offshore wind companies on August 8 at the Korea Chamber of Commerce and Industry in Seoul, where he unveiled the Offshore Wind Power Competitive Bidding Roadmap.

This roadmap follows recent measures aimed at boosting solar power generation within industrial complexes and serves as the second phase of the implementation strategy announced in May to expand renewable energy distribution and fortify the supply chain.

With domestic wind power capacity expected to reach 18.3GW by 2030, the roadmap outlines the necessity for competitive bidding on large-scale offshore wind projects. The Korean government aims to facilitate the expansion of renewable energy distribution, support the growth of the industrial ecosystem, and ensure price competitiveness through a structured approach to offshore wind distribution.

Under the new plan, the timeline for competitive bidding on wind projects will be advanced from the fourth quarter to the second quarter annually, with the possibility of additional tenders being announced later in the year if needed.

Between the second half of 2024 and the first half of 2026, Seoul will initiate approximately 7GW-8GW in offshore tenders over this two-year span.

The bid evaluation process will consist of two stages. In the first stage, non-price attributes will be assessed to shortlist 120%-150% of the bid quantity, followed by a second stage that includes price competition based on price attributes. The bidder with the highest combined score from both rounds will be awarded the contract.

Additionally, the government plans to increase the score assigned to non-price criteria from 40 to 50 points, while also adding factors like maintenance, security, and public works into the evaluation process.

Starting this year, a new bid market for floating projects will be introduced alongside the existing market for fixed turbine orders. As part of the renewable portfolio standards system realignment, a target ratio for public-sector participation will be proposed to enhance the role of public entities.

Seoul also plans to launch a public-led bid market in the first half of 2025.

Vice Minister Choe emphasized that the roadmap will ensure a stable bid quantity early on, accelerating large-scale investments in offshore wind power and generating jobs across both domestic and international companies. It will also catalyze the development of ports, ships, and other essential infrastructure.

The Ministry of Trade, Industry, and Energy is scheduled to release a wind power tender for competitive bidding in October, following an auction briefing in September.

Source - reNews

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