[Report] Offshore Wind Power Now More Desired by Residents, But Why Is It Delayed... Visiting Tamna Offshore Wind Power Complex

No Noise or Catch Reduction as Feared
Tourist Attraction Boosts Local Economy
Residents Demand Offshore Wind Expansion First
Complex Permitting Delays Project
"Simultaneous Expansion of Infrastructure like BESS" Also Pointed Out

On the 28th, I visited the pier area of Geumdeung-ri, Hangyeong-myeon, Jeju. On that day, Jeju was experiencing heavy rain under a strong wind advisory. Several offshore wind turbines were spinning more than 500 meters away from the beach, but the noise from the turbines was completely drowned out by the sound of waves and wind.

Before the offshore wind power was installed here, residents who opposed it due to noise concerns now rather hope for the expansion of the wind turbines. Since the installation of the wind turbines, fishery resources have become more abundant, and the influx of tourists has revitalized the local economy. Cafes and lodging facilities have also been established in the once quiet rural village.

Ko Chun-hee, the head of Geumdeung-ri, whom I met here, said, “At first, the haenyeo (female divers) were the most opposed, but now they are satisfied seeing that the catch has not decreased and tourists are flocking, leading to the village’s development,” adding, “Residents are hoping for the expansion of wind power.”

The view of the Tamna Offshore Wind Power Complex in Geumdeung-ri, Hangyeong-myeon, Jeju, on the 28th. On this day, the sound of the wind turbines' blades turning was not heard, drowned out by the sounds of the wind and waves. March 28, 2024. Photo by Kang Hee-jong

For the blades (the wing parts of the wind turbines) to rotate, the wind must blow, and since waves come with the wind, the villagers explain that the blade noise is ultimately inaudible.

"Catch volume actually increased... Southern bottlenose dolphins have not left"

The Tamna Offshore Wind Power Plant, completed in September 2017, is now in its seventh year of commercial operation. The Tamna Offshore Wind Power Plant complex has ten 3-megawatt (MW) wind turbines (total installed capacity of 30MW) installed in the shared waters from Dumo-ri to Geumdeung-ri in Hangyeong-myeon.

Tamna Offshore Wind Power is the first commercial offshore wind power in Korea that produces and sells electricity, serving as a benchmark for subsequent or ongoing offshore wind power projects. Lee Seong-ho, head of Tamna Offshore Wind Power, said, “Every year, 2,000 to 3,000 people visit to tour the operation.”

The operational results so far are considered successful. The current operating rate is 98%, and the average utilization rate is 29%, exceeding or maintaining levels similar to the project’s initial targets (operating rate 95%, utilization rate 28.9%). The operating rate indicates how often the turbines operated under operating conditions (wind speed 3m/sec to 25m/sec), and the utilization rate is based on actual electricity production. Even if operating, if the wind strength is insufficient and output drops, the utilization rate decreases.

The total electricity produced so far is about 500,000 megawatt-hours (MWh). This amount of electricity could power all households in Jeju (313,000 households) for about six months, based on average household electricity consumption.

The operation status of wind turbines is displayed in real-time at the Tamna Offshore Wind Power Comprehensive Control Room. Photo by Kang Hee-jong

The operational performance is also favorable. The Tamna Offshore Wind Power project was conducted through project financing (PF), with a total project cost of 165 billion KRW. By last year, sales reached 134 billion KRW, recovering 81.2% of the investment. The largest shareholder, Korea South-East Power Co., invested 20.8 billion KRW and received 14 billion KRW in dividends by last year, recovering 67.3% of its investment.

Concerns initially raised by fishermen and environmental groups about reduced catch or environmental damage have not materialized. According to monitoring by the Korea Maritime Institute (KMI), the underwater structures of the wind power plant act as artificial reefs, increasing fishery resources such as jacopever. Thanks to the increased catch, haenyeo’s working hours have decreased compared to before. Southern bottlenose dolphins are still sighted, dispelling fears that offshore wind power would destroy their habitat.

To accommodate the increased number of tourists after the offshore wind power plant installation, commercial areas such as restaurants, cafes, and lodging facilities have formed, revitalizing the economy around Hangyeong-myeon. Recently, Korea South-East Power installed night lighting on the wind turbines using energy storage systems (ESS) and set up photo zones in various locations. Residents expect the area to become a tourist attraction not only during the day but also at night.

The Tamna Offshore Wind Turbine equipped with nighttime landscape lighting. Photo by Korea South-East Power Co.

Nearby residents who initially opposed the offshore wind power plant now strongly desire expansion construction. In 2020, Korea South-East Power secured community acceptance following strong requests from residents for offshore wind expansion. After passing landscape review in 2021, the district designation change was completed in May last year.

The Tamna Offshore Wind Power expansion project plans to build nine new offshore wind turbines with an 8MW capacity each (total 72MW). Doosan Enerbility will supply the power generation equipment to ensure compatibility with existing facilities. The total expected project cost is about 400 billion KRW. Upon completion, the installed capacity of Tamna Offshore Wind Power will increase to 102MW.

Although Tamna Offshore Wind Power is now regarded as a success, it faced considerable twists and turns before construction began. Initially, the project was permitted to a private company, but due to issues such as community acceptance, progress stalled. It took ten years from the power generation permit in August 2006 to the start of construction in April 2015. Ownership changed three times during this period. As the first commercial offshore wind power project, there were no proper guidelines for resident compensation.

As various complaints caused delays, Posco Energy, the previous major shareholder of Tamna Offshore Wind Power, withdrew in 2014 by transferring its shares to Korea South-East Power. Since then, Korea South-East Power began building trust by visiting residents.

Lee Hyo-woo, head of the wind operation department at Korea South-East Power who led the project at the time, said, “At first, no matter how much we explained and transparently disclosed data, people did not believe us,” adding, “Instead of pushing forward, we built trust step by step through communication.” Direct damage compensation was paid based on appraisal agency reports, and indirect damage was compensated through active cooperation.

Aerial view of the Tamna Offshore Wind Power Complex and its surrounding area. Photo by Korea South-East Power Co., Ltd.

To ensure project feasibility, contracts were made to keep the sum of the System Marginal Price (SMP) and Renewable Energy Certificate (REC) at an appropriate level. Once community acceptance and project feasibility issues were somewhat resolved, funding was attracted from financial institutions, accelerating the project.

Based on the success of Tamna Offshore Wind Power, Korea South-East Power obtained permits for offshore wind power projects totaling 2.6 gigawatts (GW), including the 320MW Incheon Yongyu-Muui-Jawol offshore wind in October 2021 and the 320MW Incheon Deokjeok offshore wind in July last year. Last year, environmental impact assessments were completed for the Wando Geumil offshore wind (600MW) and Sinan Ui offshore wind (390MW) projects, and preparations for construction began.

◆ Even projects strongly requested by residents take 2-3 years for permits

Given the domestic conditions where it is difficult to significantly expand solar or wind power on land, the share of offshore wind power in renewable energy is expected to increase. According to the Renewable Energy 3020 Plan set in 2017, the offshore wind power supply target by 2030 is 12GW, about twice the onshore wind power target. The 10th Electricity Supply and Demand Plan sets the offshore wind power generation target at 26.7GW by 2036, accounting for 77.8% of total wind power generation.

Although offshore wind projects are rapidly increasing, progress is very slow. According to Climate Solutions, as of the end of 2022, the capacity of offshore wind power projects with permits was 20GW, far exceeding the 12GW target for 2030. However, the actual installed offshore wind power capacity was only 124.5MW, just 1% of the target.

The most significant cause of delays is the complex permitting process. There are 29 laws related to offshore wind power permits in Korea, and more than ten government agencies are involved. Even after securing community acceptance and obtaining power generation permits, complex permitting procedures remain.

In fact, even for the Tamna Offshore Wind Power expansion project, which was promoted at the strong request of residents and has no complaints, actual construction is expected 2-3 years later. This is because remaining permits such as marine area use consultation and marine area use impact assessment (Ministry of Oceans and Fisheries), environmental impact assessment (Ministry of Environment), and radio wave impact assessment (Ministry of National Defense) are still pending. A special offshore wind power law to simplify the permitting process was proposed in the 21st National Assembly but was ultimately rejected.

There are also many calls for urgent infrastructure development to properly handle the electricity produced by offshore wind power. In Jeju, where renewable energy generation has increased, output control has significantly increased over the past 2-3 years due to concerns about power grid issues.

Lee Seong-ho, head of Tamna Offshore Wind Power, explained, “There were 72 output controls two years ago and 92 last year, resulting in estimated losses of 800 to 900 million KRW last year alone.” Lee Hyo-woo of Korea South-East Power said, “To promote offshore wind power, it is necessary to expand long-term energy storage systems (BESS) or build transmission lines to send surplus power to the mainland.”

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