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New study points to ways to accelerate Korean offshore wind expansion

28.05.2021  07:47

The study Accelerating South Korean Offshore Wind Through Partnershipsa scenario-based study of supply chain, levelized cost of energy and employment effects is presented at today’s side-event Offshore Wind Korea: 12GW and Beyond during the 2021 P4G Seoul summit – Partnering for Green Growth and Global Goals.

Korea is in its early stages of developing its offshore wind industry. Due to strong domestic supply chain capabilities within steel, shipbuilding and cables, the country is in an excellent starting position for developing its offshore wind industry. Like any other country in a relatively new market, Korea faces a number of challenges within the current policy environment and adapting its supply chain to the industri when it comes to reaching its offshore wind goals in the future.

A central solution to a number of the challenges, enabling increased speed and lowering costs, is partnerships between Korean and foreign offshore wind companies. The domestic partner delivers deep local knowledge and an extensive and qualified supplier network, and the foreign partner supports with experience and technology from mature markets and fills capacity shortages.

The most efficient way of achieving Korea’s goal of 12 GW by 2030 is by taking advantage of the lessons learned by European partners and embracing global support, putting Korea on a fast track to global-level competitiveness.

A legitimate concern in Korea, when discussing involvement of foreign companies, is domestic employment. The report measures jobs created in an offshore wind project in a domestic scenario compared to a partnership scenario with involvement of domestic and foreign companies. The domestic scenario is expected to create the most jobs. However, a fully domestic approach can expectedly only be achieved for a limited number of projects given the supply chain constraints. By comparison, a partnership scenario will enable a faster growth in installed capacity and mitigate the short-term capacity constraints. At the same time, a partnership scenario supports educational capacity building, labor qualification and provides training and knowledge transfer opportunities.

Agnes Agterberg, Deputy Head of the Economic Section, Embassy of the Netherlands in Korea further comments: This report reviews the offshore wind developments in Korea and explores options for partnerships between the Korean, Dutch and Danish offshore wind sectors. We are excited about the result and hope it will be the start of a flourishing international cooperation.

Jacob Rasmussen, Energy Counselor at the Embassy of Denmark in Korea comments on the report: I hope our study can contribute to bringing forward new ideas, partnerships and initiatives that will secure the strong effective implementation of the Korean RE3020 plan. For the mutual benefit of Korea, its people and economy.

The study is financed by and published on behalf of the Danish Embassy in Korea, the Danish Energy Agency and the Ministry of Foreign Affairs of the Netherlands. The report is authored by Aegir, COWI and Pondera with review from Korea Energy Economics Institute and Green Energy Strategy Institute.

Contact information

Jacob Rasmussen

Energy Counsellor