Offshore Wind Power Operators Receive Higher Subsidies for Using Over 50% Domestic Components

Ministry of Industry Establishes and Activates Offshore Wind Power Task Force... Wind Power Bidding Market to Open in First Half of Year

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government will establish a public-private joint "Offshore Wind Power Task Force (TF)" to strengthen on-site inspections of offshore wind power projects. To promote the spread of offshore wind power, power producers who use more than 50% domestic components or utilize national research and development (R&D) achievements will be granted increased weighting for Renewable Energy Certificates (REC), effectively allowing them to receive more subsidies, and a separate wind power bidding market will be opened in the first half of this year.

The Ministry of Trade, Industry and Energy announced this on the 6th at a public-private joint offshore wind power TF meeting chaired by Energy Vice Minister Park Ki-young.

The TF meeting is a forum to listen to and discuss solutions for difficulties faced by each offshore wind power project that has received power generation permits and is underway. The government plans to divide offshore wind power projects into four major regions: Western Jeonnam, Eastern Jeonnam, Southeastern, and Central regions, and conduct inspections every two weeks. The first meeting was held targeting the Western Jeonnam region projects (approximately 3.3GW).

First, to promote the full-scale spread of offshore wind power, additional REC weighting will be granted considering industrial contribution, etc. The government issues RECs when power producers generate electricity using renewable energy, and producers sell these RECs to large power companies for money. RECs act as a "subsidy." Since December last year, offshore wind power producers who use more than half domestic components or utilize national R&D achievements have been able to receive additional REC weighting and sell RECs at higher prices.

In addition to the solar power bidding market, a wind power bidding market will be newly established in the first half of next year.

Furthermore, to resolve uncertainties regarding offshore wind power project sites, marine site consulting will be promoted before power generation permits by providing project operators with information on statutory regulations, fisheries, and marine traffic.

An official from the Ministry of Trade, Industry and Energy stated, "By establishing the public-private joint offshore wind power TF, we will thoroughly identify difficulties faced by each offshore wind power project and resolve obstacles early through cooperation with related ministries," adding, "Through this, we plan to make every effort to ensure offshore wind power contributes to the 2030 Nationally Determined Contribution (NDC) and carbon neutrality."

At the first meeting, proposals were made regarding ▲the necessity of shared connection lines and timely grid connection support ▲support for the formation and operation of public-private consultative bodies related to compensation for residents and fishermen ▲government and local government interest and support for permits such as environmental impact assessments.

Energy Vice Minister Park Ki-young said, "It is the responsibility of the government and public institutions to continuously listen to the difficulties of offshore wind power project operators and resolve them as soon as possible," adding, "In this process, it is necessary to carefully ensure that the opinions of actual stakeholders such as local residents and fishermen are actively reflected." He continued, "We will do our best with related ministries and the National Assembly to ensure that the Wind Power Special Act, which will drastically improve wind power permits, can be passed this year."

This content was produced with the assistance of AI translation services.