Original Korean article: 전기신문
South Korea's Ministry of Climate Energy and Environment has prioritized domestic turbine production in its first-half 2024 offshore wind auctions, selecting 1.786GW of projects with domestic manufacturing as the top criterion. The ministry's decision to emphasize supply chain localization over the lowest generation costs resulted in projects using domestically-produced turbines being selected, while projects relying on foreign turbines were rejected despite potentially lower bid prices.
This shift in auction policy reflects a strategic pivot toward building a self-sufficient offshore wind industry. The ministry announced a 55GW bidding roadmap spanning 2026 to 2035, averaging over 4GW of annual capacity additions. Companies that commit to technology transfer agreements and domestic production capabilities will receive preferential treatment in future bidding rounds, ensuring long-term support for the localization of large-capacity turbine manufacturing.
The government's approach signals a willingness to accept higher costs in the near term to establish a robust domestic supply chain and reduce dependence on foreign turbine manufacturers. By securing technology transfer commitments from major turbine suppliers, South Korea aims to develop indigenous expertise and production capacity that will support its ambitious offshore wind deployment targets through the 2030s.
