Korea opens 2.2GW offshore wind tender, lifting 2026 total to 4GW

The environment ministry said Friday it will open a 2.2-gigawatt offshore wind tender on Oct. 30, taking this year's total auction volume to 4 gigawatts as South Korea pushes to speed up renewable capacity.

The auction, the first since the ministry published a multi-year offshore wind bidding roadmap in June, will seek about 1,700 megawatts of fixed-bottom projects and 500 megawatts of floating platforms. The ministry will publish the notice at 9 a.m. on the website of the Korea Energy Agency, it said in a statement.

The volume was set within a range that secures effective competition, based on an August survey of prospective bidders by the Korea Wind Energy Industry Association and the Korea Energy Agency. Combined with roughly 1.8 gigawatts offered in the first half, the 4 gigawatts matches the annual scale of leading offshore wind markets abroad. The ministry said the larger volume is meant to realize economies of scale and improve predictability for investors.

The ministry also lowered the ceiling prices. Fixed-bottom projects are capped at 168.937 won per kilowatt-hour, down 1.34 percent from the first half, while floating projects are capped at 174.003 won per kilowatt-hour, 0.63 percent lower, it said, citing projected changes in the levelized cost of energy at home and abroad and shifts in external market conditions including exchange rates. It said the adjustment was also aimed at bringing down domestic offshore wind generation costs step by step.

The fixed-bottom allocation includes 300 megawatts reserved for publicly led projects, in which public institutions must take a minimum equity stake to improve project viability and local acceptance and to encourage use of domestic supply chains for core equipment. The ministry is keeping the floating category for a second consecutive half to secure a foothold in a segment still in its early commercial stage worldwide.

It added that it is reviewing an extension of fixed-price contract terms to 25 years from 20 years in the next round of bidding, and plans to expand shared offshore grid connections, build out port and vessel infrastructure, and speed up permitting and financing support.