“A Catalyst for Offshore Wind Expansion”…SK Innovation E&S Completes ‘Jeonnam Offshore Wind Power Complex Phase 1’

Largest Offshore Wind Project Led by the Private Sector
Minister of Climate, Energy and Environment: "Catalyst for Offshore Wind Expansion in South Korea"
Phases 2 and 3 Target Construction Start by 2027

Overview of the Jeonnam Offshore Wind Power Project. SK Innovation E&S

On December 11, SK Innovation E&S announced that it held the completion ceremony for the Jeonnam Offshore Wind Power Phase 1 at the Ramada Plaza Hotel on Jaeundo Island, Sinan County, Jeollanam-do.

The Jeonnam Offshore Wind Power Phase 1 is a fixed offshore wind power complex located in public waters approximately 9 kilometers northwest of the coast of Jaeundo Island, Sinan County, Jeollanam-do. It is the first offshore wind power project selected under the competitive bidding system for wind power generation introduced in 2022.

With a total capacity of 96MW, it is currently the largest offshore wind project in South Korea led by the private sector. Ten wind turbines, each with a capacity of 9.6MW, have been installed, enabling annual power generation of approximately 300 million kWh. This is enough electricity to supply about 90,000 households in South Korea for one year. Compared to generating the same amount of electricity from a coal-fired power plant, this project is expected to reduce carbon emissions by approximately 240,000 tons annually.

This project has been jointly promoted by SK Innovation E&S and Danish energy investment firm CIP since they established Jeonnam Offshore Wind Power Co., Ltd. in 2020. Starting with the power generation business license in 2017, they completed permits for the use of public waters and project implementation approval in 2022. Construction on land and offshore began in March 2023, with the installation of ten wind turbines completed in December last year, and commercial operation commencing in May this year.

This project drew attention as the first case in South Korea’s renewable energy sector to secure funding through non-recourse project financing (PF). This method allows project loans to be issued based solely on the project's own credit, technology, and repayment capability, without separate collateral or guarantees from shareholders. It is expected to serve as a model for activating private investment in domestic renewable energy projects going forward.

The Ministry of Climate, Energy and Environment commented, "This is the first offshore wind power project in South Korea driven by the private sector, and it is a model case where various regulations and stakeholder interests, including military operation consultations and resident acceptance, were resolved through public-private cooperation." Minister Kim Seonghwan expressed hope, saying, "The completion of Jeonnam Offshore Wind Power Phase 1 will serve as a catalyst for the future expansion of offshore wind power in South Korea."

Lee Jongsu, President of SK Innovation E&S, stated, "The completion of Jeonnam Offshore Wind Power Phase 1 marks a significant leap for the domestic offshore wind industry and will serve as a representative model for achieving carbon neutrality and regional coexistence."

Panorama of Jeonnam Offshore Wind Power Phase 1. Ten offshore wind turbines with a total capacity of 9.6MW are installed. SK Innovation E&S

Meanwhile, Jeollanam-do Province and Sinan County plan to establish a massive offshore wind power complex with a total capacity of 8.2GW off the coast of Imjado Island by 2035. In April this year, 3.2GW of the planned Sinan Offshore Wind Power Complex was designated as an offshore wind power cluster after review by the Ministry of Trade, Industry and Energy’s Renewable Energy Policy Committee.

The Phase 2 and 3 projects (each 399MW), currently under development by SK Innovation E&S and CIP following the completion of Phase 1, have also been included in this cluster. The plan is to complete environmental impact assessments for Phases 2 and 3 by the first half of next year, obtain the necessary permits, and begin construction by the end of 2027. Once Phases 1, 2, and 3 are all completed, a large-scale offshore wind power complex with a capacity of 900MW will be established by 2031.

For this project, SK Innovation E&S sourced key equipment and installation devices such as wind turbine towers, substructures, and transmission cables from domestic companies. For the first time in South Korea’s offshore wind sector, monopile substructures were applied and installed using the country’s first offshore wind-dedicated installation vessel, the Frontier.

Jeonnam Offshore Wind Power is sharing a portion of the plant’s profits with residents of Sinan County through a resident participation model. In October, for the first time, a portion of the profits was shared with a resident participation cooperative.

The event was attended by Kim Youngrok, Governor of Jeollanam-do, Kim Daein, Acting Mayor of Sinan County, Lee Jongsu, President of SK Innovation E&S, Yeom Seongjin, Chairman of the SK SUPEX Council Communication Committee, Thomas Wiebe Poulsen, Head of Asia-Pacific at CIP, and other key officials from related organizations and companies.