Offshore wind to bring economic benefits to country
By Ko Dong-hwan
David Jones, country manager of RWE Renewables Korea, urged the National Assembly, Wednesday, to swiftly pass a special bill on offshore wind power, emphasizing the crucial role offshore wind will play in Korea’s energy mix, as the country strives meet its 2050 carbon neutrality goal.
Korea has committed to reducing its greenhouse gas emissions by 40 percent by 2030, compared to 2018 levels, and achieving net-zero emissions by 2050. However, Korea’s current renewable energy output falls short of these targets, with less than 200 megawatts (MW) of operational offshore wind capacity today. In contrast, the government’s 10th Basic Plan for Long-Term Electricity Demand and Supply aims for 14.3 gigawatts (GW) of operational offshore wind capacity by 2030, and 26.7 GW by 2036.
“(With) the average timescale for an offshore wind farm to reach commercial operation from the point of origination being around eight years, it is clear that regulatory and policy support needs to shift forward urgently if we are to come close to achieving our decarbonization goals,” Jones said in a special speech at the Korea Times forum held at the Korea Chamber of Commerce and Industry in central Seoul. He added that the proposed special bill has been debated between political parties for over two years.
According to Jones, the bill aims to centralize the selection and development of offshore wind farms at a national level with a strategic mindset, in contrast to the current system of being regionally distributed.
“Selection of project sites that experienced developers can compete for, coordination of grid expansion and interconnection plans, directing ports and infrastructure investment, facilitation of stakeholder engagement and the efficient synchronization of the project development would all be led at the national government level to accelerate the development of offshore wind and achieve Korea’s renewable energy targets and decarbonization goals,” Jones said.
In August, the Korean government released the Offshore Wind Competitive Bidding road map, which sets out a two-year road map to auction up to 8 GW of capacity.
However, Jones said a large gap remains in the road map from 2026 toward 2030 and beyond.
“The permitting process is slow, decision making occurs at regional levels and there is a lack of strategic steering of key enablers such as grids, ports, fisheries and military coexistence. Valuable national resources, such as grid connection capacities, are currently being held by projects that are unlikely to ever be constructed,” he said.
He added that the bill, if passsed, would enable the government to further extend the offshore wind road map up to 2030 and beyond, providing industry and investors with a clear indication of the government’s intent to grow a strong pipeline of offshore projects up to the 14.3 GW 2030 target and beyond.
Jones also drew parallels between Korea and the United Kingdom, pointing to the U.K.’s recent success in offshore wind development.
“On Oct. 1, the United Kingdom successfully closed its last coal-fired power station, marking the end of coal use to generate electricity in the country. This closure also comes a year ahead of schedule and marks the end of a transition that started in 2012 with coal’s share representing 39 percent, to zero today,” he said.
“In October 2024, the U.K. reached another major milestone; 15 GW of installed offshore wind capacity. Achieving these two great milestones in 2024 was possible with a legal and regulatory framework that is very similar to the proposed special bill, allowing the U.K. to centralize and accelerate offshore wind development to reach 15 GW of capacity today.”
Jones also touched on the economic benefits that offshore wind could bring to Korea.
“Offshore wind can also offer Korea new jobs,” he said, adding that offshore wind has generated over 30,000 jobs in the U.K., a country with relatively small industry when compared to Korea.
“With the wide range of industries already supplying the global offshore wind supply chain, and the many more Korean companies that have the potential to adapt from other sectors, I believe the potential for job growth in Korea could be far greater.”
Additionally, Jones stressed the importance of offshore wind in attracting foreign direct investment and keeping Korean industries competitive in the global market.
“Countries that can provide access to renewable energy are gaining a competitive advantage and attracting foreign direct investment. Many of the world’s largest corporations are joining global initiatives such as RE100, which brings together hundreds of large and ambitious businesses committed to sourcing 100-percent renewable electricity,” he said, noting that seven of the top 10 electricity-consuming companies that joined the RE100 initiative are based in Korea.
Jones closed his remarks with a call to action: “The role and impact of offshore wind in Korea is a win-win for climate, society, industry, economy, GDP (gross domestic product) growth and jobs. To enjoy all of these benefits and more, we need the National Assembly to pass the special bill on offshore wind as soon as possible to provide (the) industry with confidence that there is a long-term offshore wind market here in Korea to invest in that will deliver much needed clean, sustainable renewable energy for all Koreans to enjoy.”
Source link
[redirect url=’https://fastpowers.com/’ sec=’3′]