As domestic offshore wind projects increase in volume, investment is flowing into facilities that produce substructures to fix generators at sea. As power plant construction progresses, turbines must be supplied alongside large structures, power cables and installation equipment on schedule. Accordingly, related companies are investing funds to secure production capacity.
Growing offshore wind volume raises importance of equipment production capacity
According to industry sources on September 10, 2026, EEW KHPC, a German offshore wind substructure manufacturer, will invest 122.8 billion won in the eastern hinterland of Gwangyang Port. On September 9, 2026, the Gwangyang Bay Free Economic Zone Authority signed investment agreements totalling 1.0655 trillion won with four companies including EEW KHPC, CGN Yulchon Power, Widpies and Hitech Engineering at the Sonokam Hotel in Yeosu.
Through this investment, EEW KHPC plans to expand facilities in Gwangyang to produce offshore wind substructures. Gwangyang is assessed as a region with the necessary conditions to manufacture large structures and transport them to sea, as it can use both steel production facilities and port infrastructure.
Domestic offshore wind project volumes are being specified through government competitive auctions. In the first half of this year, nine projects totalling 3,656 megawatts applied in the fixed-price contract competitive auction, and five projects totalling 1,786 megawatts were selected. This is the first time since the introduction of competitive auctions in 2022 that the application volume has exceeded the selected volume by more than double.
The selected volume for fixed-bottom offshore wind was 1,254 megawatts. More volume was decided in the first half of this year than the 689 megawatts selected over the entire previous year. In floating offshore wind, a project of 532 megawatts was also selected. Project selection in the floating sector, where bidding had not proceeded due to insufficient participation demand last year, has resumed.
As power plant size grows, higher manufacturing capability is required for the structures supporting generators. Offshore wind substructures must support generators at sea, so the structures are large in size and weight. Equipment to process and weld large steel plates is needed, along with transport conditions to move finished products to the site.
Domestically, GS Entech is also investing in production facilities. GS Entech is supplying 64 monopiles for the Nagwol offshore wind project. The project involves building a 365-megawatt power plant in waters near Nagwol-myeon, Yeonggwang County, South Jeolla Province, where 64 wind turbines rated at 5.7 megawatts will be installed.
GS Entech is investing 300 billion won to increase monopile production capacity. It is introducing automated equipment from Dutch Heerema, and once the equipment installation is complete, production capacity is expected to roughly double from current levels.
A common feature in the investments by EEW KHPC and GS Entech is that they secure manufacturing capacity for substructures needed in offshore wind projects in advance. When power generation project volumes translate into actual construction, manufacturing facilities capable of supplying large equipment within set timeframes are necessary.
The government's evaluation of domestic supply chain utilization in the auction process aligns with this. The projects selected this year presented plans to use domestic companies in major areas including substructures, power cables, installation and construction, and operations.
For projects using 15-megawatt turbines, plans for domestic production and technology transfer were also submitted in fields where domestic independent technology does not exist. As offshore wind power projects increase, securing the foundation to manufacture equipment domestically is becoming an important condition.
Gwangyang, equipped with steel and ports, has advantages in large structure production
Substructure production facilities differ from general manufacturing plants in that they must account for everything from raw material procurement to finished product transport. Products such as monopiles are large and heavy, facing constraints in land transport, and require a process of loading finished products onto ships and sending them to power plants.
Gwangyang is located near steel production facilities and ports. The ability to secure steel materials needed for structure manufacturing and move finished products to sea through the port can influence the location of production bases.
The government also plans to secure ports and installation vessels needed for offshore wind construction. By 2030, it will establish a port system capable of handling 4 gigawatts of offshore wind annually and secure four or more installation vessels for 15-megawatt wind turbines.
Medium and long-term supply targets have also been set. The government is securing cumulative volumes of 10.5 gigawatts for preparation and construction start by 2030 and promoting cumulative offshore wind supply of 25 gigawatts or more by 2035. The global offshore wind market is also projected to grow from 83 gigawatts in 2024 to 441 gigawatts in 2034.
Building power plants requires not only power generation licences and financing but also the foundation to manufacture and transport equipment. Particularly as offshore wind turbines continue to grow larger, substructure manufacturers are required to have equipment capable of stably manufacturing and delivering large products.
This investment extends beyond offshore wind to the energy, defence and industrial plant sectors in the Gwangyang Bay region. If each company's investment proceeds as planned, 238 new jobs are expected to be created in the region. As offshore wind equipment production facilities, power generation equipment and special generator manufacturing facilities are established, it is expected to help secure related manufacturing foundations.
An industry official said, "For large-scale facility investment to translate into actual production and employment, it is important to have the land, electricity and logistics conditions that companies need. The Gwangyang Bay region can have competitiveness in attracting large manufacturing facilities in that it can leverage existing industrial foundations including steel and ports."
KWI developer profile — KOWEPO
8 projects in Korea totalling 2,832 MW. Compiled from the KWI database. Not part of the source article.
Nagwol Offshore Wind — this article
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Taean Offshore Wind
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RWE West-Sea Offshore Wind
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Taean Gaui Offshore Wind
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Wando Jangbogo Offshore Wind
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Jindo Gujado Offshore Wind
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Ansan Pungdo Offshore Wind
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Wando Offshore Wind
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Project data: KWI database — Electricity Business Licence records, EIA filings (ME2019C003, ME2021C010, ME2023C024), Electricity Regulatory Commission minutes, and pre-EBL permit filings.
Original Korean article: Polrinyuseu Polinews
English brief by Korea Wind Intelligence, koreawindintel.com
