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February 8, 2021

South Korea plans to build 8.2GW, $43bn offshore wind farm

The Government of South Korea reportedly plans to build an 8.2GW offshore wind facility by 2030, using an investment of $43.2bn (KRW48.5tn).

By Umesh Ellichipuram

The Government of South Korea reportedly plans to build an 8.2GW offshore wind facility by 2030, using an investment of $43.2bn (KRW48.5tn). This development would become the world’s largest single offshore development when finished.

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Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
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Reuters reported that project forms part of the government’s efforts to encourage economic recovery from the Covid-19 pandemic.

The project also forms a significant component of South Korean President Moon Jae-in’s Green New Deal. This legislative programme started last year and focuses on limiting the country’s dependence on fossil fuels, aiming for carbon neutrality by 2050.

Moon Jae-in attended a signing ceremony for the new wind project which took place southwestern coastal town of Sinan. There he said: “With this project, we are accelerating the eco-friendly energy transition and moving more vigorously toward carbon neutrality.”

Korea Electric Power Corp, SK E&S, Hanwha Engineering & Construction, Doosan Heavy Industries & Construction, CS Wind Corp and Samkang M&T Co also attended the signing event.

According to Reuters, the companies have agreed to provide $42.4bn (KRW47.6tn) in funding for the project. The government will provide the remaining $802m (KRW0.9tn).

In addition to generating renewable energy, the wind project will create 5,600 jobs in the region. It will also boost the country’s existing 1.67GW wind power capacity to 16.5GW by 2030.

Officials said the wind farm will produce energy equivalent to the output of six nuclear reactors.

Currently, Hornsea 1 offshore wind farm in Britain is said to be the world’s largest wind facility, with 1.12GW capacity.

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Free Report
img

Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

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