Offshore Wind Contract Prices Surge Fivefold in Eight Years

Original Korean article: Sisa Journal

Korea's state-owned power generation companies have raised offshore wind power purchase agreement rates more than fivefold over eight years, from 83,000 won per MWh in 2018 to 430,980 won per MWh in 2026, contradicting earlier promises to lower costs.

The Sinan-Ui offshore wind project, which serves as the flagship initiative under the government's National Growth Fund program, also experienced a price increase. The initial contract price of 334,954 won per MWh was raised to 358,460 won per MWh following the addition of community participation weighting adjustments.

The primary driver behind the dramatic surge in contract prices is the REC (Renewable Energy Certificate) subsidy system's weighting mechanism. Offshore wind projects receive the highest multiplier rates, with a base multiplier of 2.5 times and a maximum of 5.2 times, significantly inflating the final contract prices.

These long-term fixed-price contracts, which can extend up to 20 years, are expected to substantially increase the burden on consumers' electricity bills. The escalating costs raise concerns about the sustainability and economic viability of Korea's offshore wind energy expansion strategy.

KWI project profile — Sinan Ui Offshore Wind

Compiled from the KWI database. Not part of the source article.

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• Sinan Uido Offshore Wind Faces Foundation Issues Before Groundbreaking — 2026-07-15
• Korea's Offshore Wind Construction Accelerates: Sinan-Ui, Nagwol, Hallim Projects Break Bottlenec — 2026-07-15

Project data: KWI database — Electricity Business Licence records, EIA filings (ME2021C012), and Electricity Regulatory Commission minutes.