The introduction of a renewable portfolio standard in January 2012 has incentivised both onshore and offshore wind power projects in development.
These projects include a 5GW project, encompassing 1GW of onshore wind and 4GW of offshore wind in Chollanamdo, a sparsely populated province in the south of the country. In late 2012, the province signed an agreement with a consortium led by steel maker Posco to build a 200MW demonstration onshore farm and a 300MW offshore wind farm as part of the 5GW wind project. Some KRW 500 billion ($459 million) will be invested in the project until 2015.
At the end of 2012, the South Korean government also set up a new special purpose company, consisting of Kepco and several other utilities, to develop a 2.5GW offshore wind farm off the south west coast, in the Jeolla sea. This was first announced in 2010. The company, Korea Offshore Wind, will have contracts with five domestic turbine manufacturers and will file an application for a power production license by March.
Meanwhile, manufacturer Samsung Heavy Industries is to build an 84MW wind farm off the coast of Jeju, a self-governing island province. Samsung will supply 12 of its 7MW turbines to be installed in shallow waters, with operations expected to begin in 2015.