Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 209
Offshore Wind Worldwide 2023
1. STATE AND FUTURE OF
OFFSHORE WIND PROJECTS
Starting with the "Renewable Energy Plan
3020" in 2017, the Korean government (the
"Government") has been actively pursuing its energy conversion policy to reduce
the share of fossil fuels and nuclear power
plants but to increase the share of renewable energy. As a result, the renewable energy
capacity increase for a five-year period from
2012-2016 was 5.9GW whereas 18.3GW
increase was shown during 2017-2021 taking
up its share from 3.2% in 2017 to 6.3% in
2021. The following issues, however, remain
outstanding: (i) disproportionate supply
of solar power, (ii) growing disputes among
developers and conflicts with local fisheries
in the offshore wind sector, (iii) unbalanced
development of generation facilities across
regions, and (iv) domestic supply chain
becoming less competitive due to increase
in import of major facilities.
In this regard, in November 2022, the Ministry of Trade, Industry and Energy (MOTIE)
announced the "Renewable Energy Policy
Improvement Plan to Meet Changes in the
Energy Sector" (the "Plan"). According to
the Plan, a target ratio for the renewable
energy by 2030 is adjusted to 21.6%, which
represents a 8.6% decrease compared to
the previous nationally determined contributions target of 30.2%, but a slight increase
from the 9th Basic Plan for Power Supply
and Demand of 20.8%. This adjusted target
is also included in the 10th Basic Plan for
Power Supply and Demand announced this
year. Accordingly, the renewable portfolio
standard (RPS) ratio under the Enforcement
209
Decree of the Act on the Promotion of the
Development, Use and Diffusion of New and
Renewable Energy is expected to decrease
this year although the ratio of wind power
to solar is expect to increase significantly.
The new annual renewable energy capacity
will reach five GW per year, higher than the
previous Government‘s 3.7 GW per year.
In terms of the overall renewable energy
system, the Government considers converting the RPS system into an auction system
in the long term. In addition, requirements
for examination of the grid connection system will be strengthened when granting an
EBL (as defined below), and local residents’
receptivity will be emphasized by reforming
the residents’ participation scheme and establishing guidelines to enhance residents’
acceptance.
The Government plans to reduce the cap
on the Effective Areas (as defined below)
for wind measurement in the offshore wind
power sector. This is to prevent disputes
while expanding the supply of offshore
wind power in a more organized manner by
replacing the development method with
a planned selection method, which includes government-led site discovery, district
designation, and providing comprehensive
support for authorizations and permits.
As of April 2023, the total capacity of the offshore wind farm is 0.13 GW of which 30 MW
is from Tamra offshore wind farm in Jeju
Province, 60 MW from Southwest Sea Offshore Wind and 34.5 MW from Yeonggwang
Onshore-Offshore Wind facilities which
are all in operations. There are many more
