Korea South-East Power (KOEN), a subsidiary of Korea Electric Power Corporation (KEPCO), is withdrawing from the Shinan Ui (Sinan Ui) offshore wind project after the proposed wind farm did not pass the government’s feasibility assessment.
According to Seoul Economic Daily , in August 2024, the preliminary feasibility study carried out by the Ministry of Strategy and Finance and the Korea Development Institute (KDI), deemed the offshore wind project not being highly economically feasible due to rising material and construction costs.
The total project costs for the 390 MW offshore wind farm are said to be estimated at KRW 3.1 trillion (approximately EUR 2 billion).
Information about KOEN’s decision to withdraw from the project and the company notifying its project partners was announced by the Korean Ministry of Trade, Industry and Energy (MOTIE) on 5 January, according to Seoul Daily, which also writes that KOEN is expected to sell its 37 per cent stake in Shinan Ui in parts rather than it being sold entirely to one buyer.
KOEN’s project partners are Hanwha Ocean, which also holds a 37 per cent stake, and SK Eternix which owns the remaining 26 per cent.
The offshore wind farm is proposed to be built in the waters off Sinan County in South Jeolla Province and is planned to comprise 26 Vestas V236-15.0 MW turbines.