[Report] 'Everything Is a First' at Jeonnam Offshore Wind Power Phase 1, Success Model Expands to Phases 2 and 3

Korea’s First Privately-Led Offshore Wind Power Complex
Commercial Operation Began in May Last Year, Completion Ceremony Held in December
Environmental Impact Assessments for Phases 2 and 3 Completed
Preparing for Government Competitive Bid

On the afternoon of September 9, after a 50-minute boat ride from the dock in Jaeun-ri, Sinan County, Jeollanam-do, ten massive wind turbines stood tall, turning vigorously in the wind. Each turbine, from sea level to blade tip, stands 237 meters high—comparable to the 249-meter-tall 63 Building in Yeouido. These turbines are part of the Jeonnam Offshore Wind Power Complex Phase 1.

"Since commencing commercial operations in May last year and holding the completion ceremony in December, we have achieved a 97% operating rate and a utilization rate in the low 30% range."

Jincheol Kim, CEO of Jeonnam Offshore Wind Power and Vice President of SK Innovation E&S, explained this to reporters onboard. The Phase 1 project is jointly invested in a 51:49 ratio by SK Innovation E&S and Copenhagen Infrastructure Partners (CIP), a Danish renewable energy investment firm. The reporter visited the Jeonnam Offshore Wind Power Complex, now in its ninth month since completion, together with the Korea Wind Energy Association.

A 9.6MW capacity wind turbine installed in the Jeonnam Offshore Wind Farm Phase 1. Photo by Heejong Kang

Located about 90 kilometers offshore from Jaeundo, Sinan County, the Jeonnam Offshore Wind Power Complex Phase 1 is equipped with ten Siemens Gamesa 9.6MW turbines. This is the first time that 10MW-class offshore wind turbines have been installed in Korea. In addition, Jeonnam Offshore Wind Power boasts several other "firsts" in the country. Kim explained, "For the first time in Korea, we utilized a non-recourse model for project financing in accordance with global standards and constructed the facility using a monopile foundation method for the first time."

A non-recourse model means that funding is secured solely based on the business feasibility and revenue of the project, with financial institutions not holding major shareholders liable for loan repayment. In other words, the bank lent money solely on the merit of the project's profitability. After being selected in the government's offshore wind power competitive bidding, first introduced in 2022, Jeonnam Offshore Wind Power successfully raised 600 billion won from domestic and international financial institutions and was able to begin construction in 2023.

Jincheol Kim, CEO of Jeonnam Offshore Wind Power, is explaining the status of Block 1. Korea Wind Energy Industry Association

Whereas previous offshore wind projects along the West Coast adopted a jacket (tripod-type substructure) foundation, Jeonnam Offshore Wind Power adopted a monopile method, driving a single large steel pillar, thus reducing both construction period and costs. Following the success of Jeonnam Offshore Wind Power, newly installed offshore wind projects along the West Coast are now employing the monopile method.

The company invested about 10 billion won to reinforce the ground strength at Mokpo New Port, the project's supporting port, to transport 500–600 ton nacelles (frames covering wind turbines) and towers. As a result, Mokpo New Port is now effectively serving as a hub port for multiple offshore wind power projects.

Not everything went smoothly. Following the outbreak of the Russia-Ukraine war, surging raw material prices drastically increased project costs. At the outset, construction costs were projected at about 6 billion won per MW, but the actual figure soared to about 9 billion won per MW.

Jincheol Kim, CEO of Jeonnam Offshore Wind Power and Vice President of SK Innovation E&S

As the "first privately-led offshore wind project in Korea," Jeonnam Offshore Wind Power carries multiple industry implications. Kim stated, "By completing construction just two and a half years after selection in the December 2022 government bidding, we have boosted trust in Korea's bidding system and played a key role in establishing the domestic offshore wind supply chain."

Excluding turbines, Jeonnam Offshore Wind Power localized 70% of engineering, procurement, and construction (EPC), with towers supplied by CS Wind, substructures by Hyundai Steel Industries, subsea cables by LS Cable, onshore substations and transmission lines by Gaon-Hyundai Electric, and installation vessels by Hyundai Steel Industries.

Building on the success of Phase 1, Jeonnam Offshore Wind Power is accelerating the development of Phases 2 and 3, both located to the west of Phase 1. Each has a planned capacity of 400MW, making them large-scale projects. Last month, the environmental impact assessments were completed, meeting the requirements to participate in the government’s offshore wind power competitive bidding.

Jeonnam Offshore Wind Power aims to take part in the bidding for Phases 2 and 3 in the second half of this year, with construction scheduled to commence in the latter half of 2028. If all proceeds as planned, commercial operation is set to begin in 2031. At that point, Jeonnam Offshore Wind Power will become a large-scale offshore wind power complex with a total capacity of 900MW. It is expected to serve as a key energy supplier for the government-initiated Honam semiconductor cluster.

Phases 2 and 3 are part of the Shinan Offshore Wind Power Cluster, designated in April of last year, which is expected to further accelerate the projects. Kim explained, "Phases 2 and 3 are situated in locations with minimal regulatory limitations, and consultations with the military regarding operational compatibility are nearly complete." However, rising construction costs due to inflation remain a burden. The wind power industry notes that if the government sets bidding prices excessively low, opportunities for domestic supply chain growth may be lost.

A panoramic view of the Jeonnam Offshore Wind Power Operations and Maintenance Center located at Saengkkim Port, Sinan County

Jeonnam Offshore Wind Power operates an Operations & Maintenance (O&M) center at Saengkkim Port. About 30 personnel, including 10 employees from Siemens Gamesa, are stationed at this center. The first floor houses a Siemens Gamesa parts warehouse. Kim noted, "Even if a turbine malfunction occurs, we can respond quickly." The workforce at the O&M center is expected to increase to around 100 people upon completion of Phases 2 and 3.

Jeonnam Offshore Wind Power is also the basis for Shinan County’s first "wind income" model. Shinan County has drawn attention with its "solar income" initiative, which distributes a portion of profits from solar power plants to resident-led cooperatives. Jeonnam Offshore Wind Power shares "wind income" with residents in the same way as the solar income model.

Jungsoo Lee, Director of the New and Renewable Energy Bureau of Sinan County, is explaining the current status of offshore wind power in Sinan County. Wind Power Industry Association

Lee Jeongsu, Director of the Renewable Energy Division at Shinan County Office, explained, "From the second quarter of 2025 to the second quarter of this year, a total of 5.5 billion won in profit-sharing income was generated through Jeonnam Offshore Wind Power. Of that, 45% was allocated to residents of Jaeun-myeon, and the remaining 55% was distributed to other regions within Shinan County." The company also plans to share profits from Phases 2 and 3 with residents using this wind income model.

Wind income complements solar income, contributing to increased resident earnings. Lee explained, "Wind power generation peaks during the winter, from October to the following March, when solar output is reduced, enabling steady profit distribution to residents throughout the year."

Meanwhile, of the 11 clusters (3.7GW) in the Shinan Offshore Wind Power Cluster, 9 clusters (3.0GW) plan to connect to Korea Electric Power Corporation’s grid via shared connection facilities. However, as the grid has not been designated as part of the National Power Transmission Network, gaining acceptance from residents along transmission lines has proved challenging.

Should it be designated as a National Power Transmission Network, subsidies of 2 billion won per kilometer will be available. Shinan County is urging the government to designate facilities installed by private enterprises using shared connection approaches as part of the national grid under the National Power Transmission Network Expansion Act.

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