Ørsted suspends Incheon offshore wind bid, undertakes full project review

Original Korean article: Global Economic

1.4GW-scale Incheon offshore wind project bidding suspended and global organizational restructuring underway

Design readjustment to secure economic viability amid failure to meet internal investment criteria, and review of next bidding participation

Government's downward trend in electricity purchase unit price and concerns over domestic equipment supply chain impact

Ørsted, a world-leading Danish offshore wind developer, has suspended bidding for the Incheon offshore wind power project it has been pursuing in Korea and decided to conduct a full review of the plan.

Marine specialist media Splash247 reported on August 27 (local time) that Ørsted made this decision because it failed to meet internal investment criteria, and plans to review participation in the next bidding after improving economic viability going forward.

This decision has drawn attention to the ripple effects on Korea's renewable energy supply policy and related supply chains as the largest-scale private offshore wind project in Korea faces a halt.

Ørsted's Incheon offshore wind project suspended

Danish offshore wind developer Ørsted has suspended bidding for the Incheon offshore wind power project it was pursuing in Korea and decided to conduct a full review of the plan.

Ørsted made this decision because it failed to meet internal investment criteria, and plans to review participation in the next bidding after undergoing design modification work to increase the economic viability of the project.

Splash247 reported that Ørsted temporarily halted bidding for a 1.4GW-scale offshore wind project off the coast of Incheon. The project was to be carried out in two phases of 800MW and 600MW, and is the largest-scale offshore wind project pursued by a single private developer in Korea.

Ørsted's headquarters is known to be planning organizational restructuring across its global operations, including its Korean subsidiary.

Design readjustment for economic recovery and policy environment

Ørsted has decided to redesign the project to secure economic viability in order to participate in future bidding. The developer plans to pursue participation in the next bidding after restoring project feasibility through redesign.

Meanwhile, industry observers point out that the Korean government's downward trend in offshore wind electricity purchase unit prices is a factor that reduces project attractiveness. According to the government's official policy documents, the offshore wind contract unit price is to be lowered to 250 won or less by 2030, and the target for 2035 is 150 won or less.

According to the Ministry of Climate, Energy and Environment's 11th Basic Plan on Long-term Electricity Supply and Demand, plans call for expanding renewable energy capacity to 220GW by 2040, including 45GW of offshore wind, but concerns have been raised about achieving mid- to long-term targets as Korea's largest-scale project is suspended.

Supply chain impact and renewable energy industry effects

Concerns have been raised that this development project suspension could affect domestic component manufacturing companies that supply substructures and submarine cables. The temporary halt of a large-scale project has raised the possibility of short-term order delays and investment contraction across the entire related equipment supply chain.

The timing of Ørsted's return to the next bidding after redesign work is expected to become a turning point for revitalizing Korea's offshore wind market. The developer's ability to secure project viability and the government's policy unit price adjustment trend will be key indicators for gauging future market normalization.

Ørsted's suspension of the Incheon offshore wind project is a case that demonstrates the intersection between a global developer's stringent profitability standards and the domestic policy environment. The direction of the project's redesign and the government's supplementary policies are expected to determine the future direction of Korea's offshore wind ecosystem.

KWI developer profile — Orsted

2 projects in Korea totalling 1,470 MW. Compiled from the KWI database. Not part of the source article.

Incheon 1 Offshore Wind — this article

Incheon 2 Offshore Wind — this article

Project data: KWI database — Electricity Business Licence records, EIA filings (ME2025C009, ME2025C010), Electricity Regulatory Commission minutes, and pre-EBL permit filings.