HIGHLIGHTS

• Scaling up offshore wind deployment is essential for decarbonizing the transition sector, but the absence of a state-led system has resulted in numerous inefficiencies.

• A proposed bill aims to shift from the current open-door system to a streamlined one-stop shop approach in planned sites, still pending in the National Assembly despite three years of discussion.

• Key factors influencing offshore wind penetration in Korea include 1) permitting and local acceptance, 2) power grid, 3) offshore wind market, 4) ports and installation vessels, and 5) the supply chain. Among these, the first three factors are primary drivers, and uncertainties surrounding them must be addressed to enhance development and investment in the remaining areas.

• The current special bill addresses permitting and local acceptance but could be improved in terms of power grid and the offshore wind market.

• In the transitional measures of the special bill, it is desirable to ensure to allow existing developers to continue their projects under the current legal framework, while applying the new scheme exclusively to new entrants.

• Besides passing the special bill, the government should reduce policy uncertainty by releasing a comprehensive Master Plan for Onshore and Offshore Transmission Systems, a strategy for building an efficient national grid, and an Offshore Wind Auction Roadmap detailing the location, frequency, and scale of auctions over the coming years.

• Considering that the accelerated development of existing developers is crucial for meeting the 2030 offshore wind installation target, the government should pre-disclose the bid volume for each competitive bidding round in the coming years and support the permitting process.