Bidders await outcome of Korean offshore wind auction

The competitive bidding process for the H1 2026 auction closed on Tuesday 12 May. As part of the auction, projects could bid to deliver a share of approximately 1.8 GW of new offshore wind capacity in South Korea. According to a report by Electric Power Journal, however, projects amounting to a little more than double that capacity submitted bids in the auction.

Most of the new capacity – around 1.4GW – is to be derived from fixed-bottom offshore wind projects. For this category, there were two routes through which projects could choose to bid. For projects willing to meet certain criteria around public ownership, 400 MW of capacity could be bid for. Approximately 1GW of fixed-bottom capacity was available to bid for via the separate general auction. The twin-track approach was designed to balance support for local developers and supply chains with a desire to promote competition and innovation in the market.

The Electric Power Journal has reported that four bids were made in the fixed-bottom general auction – Haesong 1 Offshore Wind Power (504MW); Haesong 3 Offshore Wind Power (504MW); Hanbit Offshore Wind Power (340MW); and Gulyup Island Offshore Wind Power (250MW).

In the public-led market, two bids were received according to Electric Power Journal – from Jangbogo Offshore Wind Power (400MW) and Geumodo Offshore Wind Power (160MW), respectively.
A further 400MW of approximate capacity will be derived from floating offshore wind projects. Three projects – Haeuli 2 (532MW); Haeului 3 (560MW); and East Blue Power (375MW) – submitted bids in this category, according to Electric Power Journal.

The bidding ceiling prices set for the auction were KRW 171.229/kWh ($115/MWh) for fixed-bottom projects, and KRW 175.100/kWh ($117/MWh) for floating projects. Those ceiling prices are slightly lower than those set during the previous auction.

To be eligible to participate in the H1 auction, projects had to meet a range of requirements – including holding power generation licences and completing an environmental impact assessment.

As well as being assessed on price, bidders can expect other criteria to be equally factored into award decisions – including how soon projects can be connected to South Korea’s electricity grid.

The H1 2026 auction is part of a wider initiative to bolster renewable energy generation in South Korea. In relation to offshore wind specifically, South Korea’s Ministry of Trade, Industry, and Energy (MOTIE) outlined its Offshore Wind Power Competitive Bidding Roadmap in 2024 in which it set out its plans to grow domestic wind power capacity to 18.3 GW by 2030, by initiating competitive bidding for large-scale offshore wind projects.