Last week, the South Korean government revealed that it had signed a $43 billion deal to construct what will become the largest offshore wind farm in the world.
To date, South Korea has limited energy sources of its own, and largely relies on imported coal for approximately 40% of its electricity. In May 2020 however, President Moon Jae-in announced that the Asian country would begin transitioning towards a carbon neutral economy, while also phasing out nuclear power, and instead becoming largely dependent on renewable energy. In a bid to meet its carbon neutrality goals by 2050, South Korea has agreed to invest some $43 billion towards building an offshore wind farm by 2030, according to Reuters.
South Korea’s offshore wind farm will be built off Sinan, which is located in the southwest of the country. The complex is expected to be seven times larger than the current largest offshore wind farm, which is located in Britain and has a capacity of 1.12 GW. Once completed, the South Korean government is anticipating its offshore wind farm will boast a capacity of 8.2 GW, and will be the equivalent of six nuclear power stations.
The project is expected to involve up to 33 different entities, including regional governments, the electricity generator KEPCO, as well as numerous other private companies. However, Moon warned that it could be another five years before construction would even begin on the complex, but noted that the government will do its best at accelerating the process. Global offshore wind power capacity is expected to increase by approximately 37% this year, and will largely be driven by Chinese projects.
In addition, South Korea also plans on reducing its number of existing nuclear power plants from 24 to 17 by 2034. This will reduce the sector’s energy output by almost half. Currently, South Korea’s nuclear energy accounts for 19.2% of energy generation.
Information for this briefing was found via Reuters and Rystad Energy. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.