Auction notice expected by end of October; contract extension and price ceiling reduction under review
The second half of 2026 is expected to see fixed-price contract competitive auction volumes for offshore wind of 2 gigawatts or more, with project costs estimated at 10 trillion to 18 trillion won. Industry attention is focused on whether the price ceiling will fall further compared to the first half of 2026. The government plans to maintain the existing 20-year contract term in this auction while reviewing options to lower the price ceiling through contract extension. On the supply chain front, particularly regarding turbines, the government has announced a policy to evaluate not only assembly and manufacturing but also technology and rights acquisition, requiring developers to prepare thoroughly.
The Ministry of Climate, Energy and Environment (MCEE) and the Korea Energy Agency (KEA) Renewable Energy Center held a comprehensive briefing on October 13 at the Samjeong Hotel in Gangnam-gu, Seoul, on the 2026 second-half offshore wind fixed-price contract competitive auction. They outlined the auction promotion plan, revised evaluation system, and auction schedule. The auction notice is expected by the end of October at the earliest or early November at the latest, with a 30-day application period on a business-day basis, and individual notification of selection results beginning in December.
The price ceiling and announced capacity, which have drawn developer interest, will be finalized in October through the RPS Operating Committee. The price ceiling is calculated by considering domestic and international levelized cost of electricity (LCOE) forecasts, fluctuation rates, investment costs, auction competition rates, and overseas cases. Since the government is pursuing LCOE reduction and the first-half price ceiling was lower than the previous auction, additional reductions in the second half cannot be ruled out.
