The profitability of large-scale private investment in offshore wind and community-participation solar power ultimately converges on a single question: can the new contract market launching in 2027 lower renewable energy prices while still leaving investors with viable returns? With global offshore wind market profitability already deteriorating and some domestic developers abandoning or scaling back projects, the government's price design has emerged as a critical variable that will shape future investment flows.
According to the Jeollanam-do and Gwangju Integrated Special City authorities on October 25, the government aims to supply more than 100 gigawatts of renewable energy by 2030 and increase offshore wind to 25 gigawatts or more by 2035. The plan is to lower offshore wind generation costs from the current 330 won per kilowatt-hour to 250 won or less by 2030 and 150 won or less by 2035. The strategy involves shortening project periods, expanding ports and installation vessels, and developing domestically-made 20-megawatt turbines to reduce costs themselves.
The new contract market operating from 2027 is designed to align with this direction. The government presents supply volumes and price ceilings by generation source, developers participate in competitive bidding, and selected developers sign long-term fixed-price contracts with KEPCO (Korea Electric Power Corporation). The aim is to reduce revenue volatility through long-term contracts while lowering electricity purchase prices through competition.
