{"id":7271,"date":"2024-04-04T05:19:05","date_gmt":"2024-04-04T05:19:05","guid":{"rendered":"https:\/\/energytracker.asia\/?p=7271"},"modified":"2024-04-04T17:26:07","modified_gmt":"2024-04-04T17:26:07","slug":"wind-energy-in-south-korea-opportunities-and-challenges","status":"publish","type":"post","link":"https:\/\/energytracker.asia\/wind-energy-in-south-korea-opportunities-and-challenges\/","title":{"rendered":"Wind Energy in South Korea – Opportunities and Challenges"},"content":{"rendered":"
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While South Korea has long been stalling on its renewable energy transition<\/a> and remains far behind other developed countries, things are starting to change. A major enabler for the steady growth of clean energy in the country is wind energy. With a climate and topography perfectly suited for large-scale onshore wind power generation, the government is now looking towards the untapped potential of offshore wind. However, before South Korean wind energy presents meaningful results, there is work to do.<\/p>\n\n\n\n

The Renewable Energy Profile of South Korea<\/strong><\/h2>\n\n\n\n

Currently, fossil fuels<\/a> dominate the energy mix of the country. The leading source is oil (37%), followed by coal (21.8%) and LNG (23.7%). Nuclear power accounts for 11%, while renewables are responsible for just 6.4% of the generated energy.<\/p>\n\n\n\n

Only 3.8% (21 TWh)<\/a> of the generated electricity in South Korea comes from wind and solar. Saudi Arabia aside, this is the worst ratio among all G20 countries.<\/p>\n\n\n\n

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South Korea’s Primary Energy Supply, 2021, a Briefing by the European Parliament<\/a><\/em><\/figcaption><\/figure><\/div>\n\n\n\n

Korea’s Offshore Wind – the Difference Maker<\/strong><\/h2>\n\n\n\n

As a part of its Green New Deal<\/a>, South Korea aims to generate 20%<\/a> of its power with renewables by 2030. The target for offshore wind capacity is 12 GW<\/a>, a significant increase from the 124.5 MW<\/a> the country has today.<\/p>\n\n\n\n

State of the South Korean Offshore Wind Energy Sector<\/strong><\/h3>\n\n\n\n

Currently, the majority of the public Korean offshore wind developers are state-owned power generation companies (GENCOs). They are subsidiaries of the Korean Electric Power Corporation (KEPCO). As such, they are obligated<\/a> to generate a certain amount of power from renewables and purchase renewable energy certificates (REC) using a fixed price contract regime administered by the New and Renewable Energy Center. <\/p>\n\n\n\n

Private developers in South Korea wind energy market are usually major construction and heavy industry companies. Many small and medium-sized enterprises also develop offshore wind farm projects.  <\/p>\n\n\n\n

As of March 2021, 42 offshore wind projects with a total development capacity of about 7.7 GW<\/a> had acquired an Electric Business License (EBL). The EBL is awarded after a successful wind measurement campaign. It is considered a good indicator of early project development.<\/p>\n\n\n\n

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Mean Wind Speed Around the Shores of South Korea, Source: Global Wind Atlas<\/a><\/em><\/figcaption><\/figure><\/div>\n\n\n\n

South Korea’s Wind Farms Compared With Leading Countries<\/strong><\/h2>\n\n\n\n

Today, Europe has the biggest offshore wind markets globally. The total installed capacity is 25 GW. The Netherlands and Denmark are among the most mature wind energy markets and currently have 2.6 GW and 1.7 GW installed capacity<\/a>. <\/p>\n\n\n\n

It may seem unfair to compare Korea’s wind energy generation to those markets. However, according to research<\/a> by COWI, an international consulting group, it is in a strong starting position for future growth. Other experts suggest that the country could catch up with its competitors. Moreover, South Korea has the potential to lead the world in offshore wind power<\/a> if the government and companies work together.<\/p>\n\n\n\n

Such initiatives are already starting to pop up. The government plans to build an 8.2 GW offshore wind facility<\/a> and a 6-GW floating wind power complex<\/a> by 2030.<\/p>\n\n\n\n

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Mean Power Density Around the Shores of South Korea, Source: Global Wind Atlas<\/a><\/em><\/figcaption><\/figure><\/div>\n\n\n\n

Challenges Facing the Wind Energy South Korea<\/strong><\/h2>\n\n\n\n

The South Korean wind energy transition will not be seamless. The main challenges<\/a> are complicated regulations, lengthy and unreliable permitting processes, and supply chain and grid uncertainties. Furthermore, there is an imbalanced risk profile for developers, who bear the burden of early-stage development costs. In addition, they experience opposition<\/a> from locals, which, according to Bloomberg<\/a>, could make South Korea miss its wind power target by 4.6 GW.<\/p>\n\n\n\n

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There is also the challenge of ensuring energy production at the lowest possible cost. Estimates reveal that wind power in South Korea costs about USD 220 per megawatt-hour<\/a>, among the highest in the world. Paired with the rising costs of installation and operation due to the involvement of inexperienced contractors, this may be a significant hurdle towards the South Korean wind energy transition.  <\/p>\n\n\n\n

However, the Green New Deal addresses some of these challenges, like simplifying permitting and licensing processes<\/a>. The government also plans to conduct a feasibility study<\/a> in up to 13 areas. The goal is to find large-scale offshore wind farms locations and ease the research process.<\/p>\n<\/div>\n\n\n\n

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