CIP Launches South Korea's First Private-Led Offshore Wind Farm

Jeonnam Offshore Wind Power 1 Begins Commercial Operation
The Era of Large-Scale Offshore Wind Power Officially Begins

Global green energy infrastructure investment and development firm CIP (Copenhagen Infrastructure Partners) announced on May 21 that "Jeonnam Offshore Wind Power 1," which was jointly developed with SK Innovation E&S, commenced commercial operation on May 16.

Located approximately 9 kilometers northwest of Jaeundo, Sinan-gun, Jeonnam, Jeonnam Offshore Wind Power 1 is the largest private-led offshore wind farm in South Korea, with a capacity of 96MW. The project began with a power generation business license in September 2017, completed the installation of ten 9.6MW-class wind turbines in December 2023, and underwent trial operation earlier this year.

Jeonnam Offshore Wind Power 1 is expected to generate approximately 301 million kWh of electricity annually, which is enough to supply about 90,000 average households in South Korea for one year. Compared to the greenhouse gas emissions from a coal-fired power plant producing the same amount of electricity, it is anticipated to achieve an annual carbon reduction effect of about 240,000 tons.

'Jeonnam Offshore Wind Power 1,' jointly developed by SK Innovation E&S in the waters off Jaeundo, Sinan-gun, Jeonnam, has commenced commercial operation. Photo by CIP

Notably, Jeonnam Offshore Wind Power 1 is the first large-scale offshore wind project in South Korea led by the private sector. It utilized a non-recourse project financing (PF) model, where companies raised funds based solely on their own credit without separate guarantees.

Additionally, the project is drawing attention as a successful case in which public and private sectors collaborated to effectively address and resolve various regulatory requirements necessary for the completion and commercial operation of the offshore wind farm.

Jeonnam Offshore Wind Power 1 has demonstrated the potential for sustainable growth in the Korean offshore wind market by closely cooperating with domestic supply chain partners, fostering coexistence with local residents, utilizing regional ports and facilities, and contributing to the revitalization of the local economy.

Based on cooperation with domestic companies, CIP has contributed to the localization of key equipment and installation machinery, the development of the domestic offshore wind supply chain ecosystem, and the training and enhancement of specialized offshore wind professionals and technical capabilities in South Korea.

Thomas Wibe Poulsen, CIP Partner and Head of CIP Asia-Pacific (APAC), stated, "The commencement of commercial operation for Jeonnam Offshore Wind Power 1 marks an important milestone for CIP, SK Innovation E&S, and the many supply chain companies that have collaborated on this project. CIP will continue to contribute to the development of the Korean offshore wind industry by leveraging our accumulated expertise in offshore wind, working together with domestic partners, supply chain companies, and government ministries."

Since entering the Korean market in 2018, CIP has been at the forefront of continuous investment in domestic offshore wind projects and the introduction of innovative technologies.

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