SEOUL (Reuters) – Korea South-East Power (KOEN) has announced its decision to withdraw from the 390MW Shinan-Ui offshore wind farm project, which it had been developing in partnership with Hanwha Ocean and SK D&D. KOEN, a public utility, held a 37% stake in the project, which is set to be constructed off the coast of Sinan County, located at the southwestern tip of the Korean peninsula.
The Shinan-Ui project had previously secured a preferred supplier agreement with Vestas in 2023, under which Vestas was set to provide 26 V236-15MW turbines for the development.
The exit of KOEN from the project raises concerns about the future role of public utilities in the development of offshore wind energy in South Korea. Simong Engred Schlichting, APAC Regional Lead at Aegir Insights, suggested that KOEN's decision could indicate a shift in the participation of public utilities in offshore wind projects. “The decision of KOEN to exit the Shinan-Ui project could signal a possible change in public utilities' ability to participate in project development for offshore wind in South Korea, which has otherwise been heavily utilized,” Schlichting said.
He also warned that such withdrawals by public sector entities could negatively impact investor confidence, as local support for renewable energy projects is seen as crucial to their success in the region.
