South Korea Unveils Roadmap for Offshore Wind Tenders

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Published Aug 11, 2024 10:43 PM by The Maritime Executive

 

 

South Korea has launched its master plan for offshore wind leasing, and is preparing for its first series of large-scale offshore wind tenders. The new roadmap was unveiled by the Trade, Industry and Energy Vice Minister Namho Choe, during a conference last week with offshore wind companies in Seoul. As part of the government strategy to expand renewable energy distribution, the roadmap also seeks to strengthen the domestic offshore wind supply chain.

The Ministry of Trade, Industry and Energy (MOTIE) said the plans are to start the wind power tenders this October, followed with at least two more rounds until the first half of 2026. During the two-year period, the government will auction at least 7-8 GW of offshore wind capacity. South Korea expects to reach a wind power capacity of 18.3 GW by 2030. 

The timing for competitive bidding has been moved up from its initial window in the fourth quarter to the second quarter of each year. This will allow notice of an additional tender to be released in Q4 if needed.

In terms of bid evaluation, the government will adopt a two-stage process. The first round will assess the non-price attributes while the second one includes price competition based on an evaluation of price attributes. When the first and second round scores are added up, the bidder with the highest total score will be selected as the winner.

In addition, the government intends to increase the score allotted to non-price criteria from the current 40 to 50 percent, as well as incorporating aspects such as maintenance, economic security and use of public works. This move has been interpreted as a measure to curb Chinese imports of key offshore wind parts, including wind turbine blades. Instead, the government will be favoring bids utilizing the domestic supply chain.

“Our offshore wind power projects are large in scale, but domestic technological prowess in key equipment has not reached that of leading countries,” said a MOTIE official.

For the first time beginning this year, a bid market for floating wind turbine projects will run concurrently with the existing one of fixed wind turbine tenders. MOTIE is targeting public-sector participation, as the government gears up for the launch of a public-led bid market in H1 2025.