Global offshore wind companies are successively scaling back their operations in Korea. They have concluded that business viability is poor due to complex licensing procedures, high generation costs, uncertain revenue structures from policy changes, and the burden of building power grid infrastructure.
According to the energy industry on October 15, Norwegian state-owned energy company Equinor is withdrawing from Korea's offshore wind market. Equinor Korea, its Korean subsidiary, plans to close its office by year-end.
Earlier, British energy company Shell, Corio Generation, and Spanish Iberdrola also exited the Korean market.
Licensing delays and complexity
Global offshore wind companies agree that developing projects in Korea is difficult. To build an offshore wind farm in Korea, a company must directly coordinate with more than 10 government ministries and obtain 29 separate licences individually. Completing the licensing process typically takes 10 years.
Compensation disputes with local fishermen and residents, and military operational assessments that review whether projects interfere with military activities, are cited as major obstacles. Companies must resolve these issues one by one on their own.
