[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 at Jaeun-ri, Sinan County, Jeollanam-do, I saw 10 massive wind turbines spinning powerfully in the wind. From sea level to the tip of the blades, they rise 237 meters—about the same height as the 63 Building in Yeouido (249 meters). These were the wind turbines of Jeonnam Offshore Wind Farm Phase 1.

"Since starting commercial operation in May last year and holding the completion ceremony in December, we have achieved a 97% operation 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 to reporters on board. The Jeonnam Offshore Wind Power Phase 1 project is a joint investment by SK Innovation E&S and the Danish renewable energy investment firm Copenhagen Infrastructure Partners (CIP), with a 51 to 49 ratio. I visited Jeonnam Offshore Wind Farm, now in its ninth month of operation, together with the Korea Wind Energy Industry Association.

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

Located about 90 kilometers off Jaeundo, Sinan County, Jeonnam Offshore Wind Power Phase 1 features ten Siemens Gamesa 9.6-megawatt (MW) turbines. These are the first 10 MW-class offshore wind turbines installed in Korea. Jeonnam Offshore Wind Power holds several other "first in Korea" achievements as well. CEO Kim explained, "For the first time in Korea, we conducted project financing (PF) in a non-recourse manner in line with global standards, and it was also the first to be constructed using the monopile method."

The non-recourse method refers to securing funds solely on the business performance and profitability of the project, without financial institutions seeking repayment from major shareholders. In other words, banks lent money after reviewing only the project's merits. Jeonnam Offshore Wind Power was the first to be selected in the government's offshore wind power competitive bidding process, introduced in 2022. As a result, it successfully secured KRW 600 billion from domestic and foreign financial institutions, enabling construction to begin in 2023.

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

Previously, offshore wind farms along the west coast of Korea used the jacket (tripod substructure) method for installation. In contrast, Jeonnam Offshore Wind Power adopted the monopile method, using a single large steel column, which reduced construction time and costs. Following Jeonnam Offshore Wind Power's success, subsequent offshore wind farms on the west coast are now proceeding with the monopile method.

The company invested about KRW 10 billion in enhancing the load-bearing capacity of Mokpo New Port, the project's rear port, to transport 500–600 ton nacelles (the frame encasing the wind turbine) and towers. Thanks to this, Mokpo New Port is now excellently positioned as the rear port for many offshore wind projects.

Not everything went smoothly. After the outbreak of the Russia-Ukraine war, the price of raw materials soared, significantly increasing project costs. When construction of Jeonnam Offshore Wind Power began, costs were estimated at KRW 6 billion per MW, but in reality, this rose to about KRW 9 billion 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 significant weight for the domestic offshore wind power industry. CEO Kim explained, "By completing the project within two and a half years after being selected in the government bidding process in December 2022, we enhanced confidence in the domestic bidding system and, by building a local supply chain, played a priming role for Korea's offshore wind power sector."

Excluding turbines, Jeonnam Offshore Wind Power localized about 70% of its engineering, procurement, and construction (EPC): towers (CS Wind), substructure (Hyundai Steel Industries), submarine cables (LS Cable), onshore substations and transmission lines (Gaon-Hyundai Electric), and installation vessels (Hyundai Steel Industries).

Building on the successful experience of Phase 1, Jeonnam Offshore Wind Power is now accelerating development of Phases 2 and 3, which are located to the west of Phase 1. Each phase is a large-scale project with a capacity of 400MW. Last month, they completed the environmental impact assessment, fulfilling the requirements to participate in the government's offshore wind power bidding process.

Jeonnam Offshore Wind Power Plans to participate in the bidding in the second half of this year for Phases 2 and 3, and begin construction in the second half of 2028. If all goes as planned, commercial operations will start in 2031. In that case, Jeonnam Offshore Wind Power will become a massive 900MW offshore wind farm. It is expected to function as a key energy source for the Honam Semiconductor Cluster being promoted by the government.

As Phases 2 and 3 were included in the Sinan Offshore Wind Power Complex designated in April last year, the project is expected to move forward rapidly. CEO Kim explained, "Phases 2 and 3 are located where government permit restrictions have been minimized, and coordination with military operations is nearly complete." However, the significant increase in construction costs due to inflation is a burden. There is concern in the wind power industry that if the government pushes bid prices too low, it could erase opportunities for domestic supply chain companies to grow.

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 and Maintenance (O&M) Center at Saengkkim Port. About 30 people work at this center, including 10 Siemens Gamesa employees. The first floor of the center houses a Siemens Gamesa parts storage warehouse. CEO Kim explained, "Even if a turbine breaks down, we can respond quickly." The O&M Center’s workforce is expected to expand to around 100 employees once Phases 2 and 3 are completed.

Jeonnam Offshore Wind Power is also the first "Wind Income" model implemented by Sinan County. Sinan County has drawn attention with its "Sunshine Income" project, which distributes a portion of solar power plant profits to resident cooperatives. In the same way as the sunshine scheme, Jeonnam Offshore Wind Power shares wind income with local residents.

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

Jungsoo Lee, Director of the New and Renewable Energy Bureau at Sinan County Office, stated, "From the second quarter of 2025 to the second quarter of this year, Jeonnam Offshore Wind Power has generated KRW 5.5 billion in profit-sharing funds. Of this, 60% was allocated to the residents of Jaeun-myeon, and the remaining 40% was distributed to other areas of Sinan County." Jeonnam Offshore Wind Power also plans to share profits from Phases 2 and 3 with residents based on the wind income model.

Wind income complements sunshine income and contributes to increasing the overall income of residents. Director Lee explained, "Because wind power generation is high from October to March—when solar power generation is low—residents effectively receive steady profit-sharing throughout the year."

Meanwhile, of the 11 complexes (3.7GW) making up the Sinan Offshore Wind Power Complex, 9 complexes (3.0GW) plan to connect to Korea Electric Power Corporation’s power grid via joint connection facilities. However, since the transmission lines are not designated as part of the national backbone power grid, it has been challenging to gain acceptance from residents living near the transmission routes.

If designated as part of the national backbone power grid, a subsidy of KRW 2 billion per kilometer can be provided. Sinan County is urging the government to designate facilities installed through private operators’ joint access as part of the national backbone power grid in accordance with the National Backbone Power Grid Expansion Act.

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