Profit-sharing and grid connection conditions to be revised
The Chuja offshore wind development project in Jeju, which faced abandonment under the previous eighth-term provincial administration, will be revived under the ninth-term administration.
Jeju Governor Wi Seong-gon indicated on October 22 during a National Assembly Administrative Safety Committee audit at the provincial office that he would revise the bidding conditions and restart the project within the year.
National Assembly member Park Sang-woong (People Power Party) asked, "Jeju is targeting 5 GW of offshore wind by 2035, which is equivalent to five nuclear reactors. Is offshore wind development feasible?" He pointed out that the Chuja offshore wind project requires a 130 billion won profit-sharing payment and the Seobu offshore wind project requires an 11 billion won payment, adding, "With 16 trillion won going into Chuja offshore wind alone, is this realistic?"
Governor Wi responded, "The 130 billion won requirement was an unreasonable demand. It actually became an obstacle to project implementation. We will change this misguided policy." He signaled changes to the bidding conditions.
He added, "We will pursue institutional improvements so that private investors can participate sufficiently in the Chuja offshore wind project. We will connect the grid to Jeollanam-do. We will also begin consultations with Jeollanam-do on this matter."
The Chuja offshore wind project involves developing a 2.37 GW power generation facility, the largest of its kind in Korea, in the waters off Chuja-myeon, Jeju City. Total project costs are estimated between 16 trillion won and 24 trillion won.
Previous administration's approach and failed bidding rounds
The eighth-term provincial administration designated Jeju Energy Corporation as the public management agency for wind resources under the "Public-Led 2.0" initiative and launched its first developer bidding in July 2025 for consortium formation.
At that time, the Energy Corporation required bidders to propose grid connection to Jeju's main island, either in whole or in part. It also stipulated annual profit-sharing payments of around 130 billion won after commercial operation began.
The July 2025 bidding was announced, but KOMIPO (Korea Midland Power) withdrew midway, resulting in no award. A second bidding was launched in September that year, but not a single applicant submitted a bid, leaving the project adrift for over a year.
Ninth-term administration's revised strategy
The ninth-term administration has recently established an offshore wind promotion support unit and begun revising the bidding guidelines to restart the project. It has also prepared a two-track strategy for inclusion in the twelfth Basic Plan on Long-term Electricity Supply and Demand.
The administration amended the Jeju Special Self-Governing Province Wind Power Business Permit and District Designation Ordinance, lowering the threshold by allowing developers to autonomously propose diverse benefit-sharing methods instead of enforcing a fixed amount.
Grid connection conditions will also be relaxed. The existing mandatory requirement for Jeju grid connection will be removed, and developers will be allowed to flexibly review and propose grid connection options to the mainland, including Jeollanam-do.
A Jeju provincial official stated, "Given the current downturn in investment sentiment, establishing reasonable conditions for corporate participation is the priority. We will examine ways to maximize Jeju's interests."
Original Korean article: JejuSori
English brief by Korea Wind Intelligence, koreawindintel.com
