Region-Led Cluster Designation Expected to Secure Community Acceptance and Vitalize Domestic Supply Chain

A super-large offshore wind power complex with a capacity of 3.2GW, equivalent to two nuclear power plants, is slated for construction in the waters off Shinan County, Jeollanam-do. The Ministry of Trade, Industry and Energy announced on the 22nd that the ‘Shinan Offshore Wind Power Project’ applied for by Jeollanam-do was designated and publicly notified as a Renewable Energy Cluster Complex following deliberation and resolution by the Renewable Energy Policy Deliberation Committee.

A Renewable Energy Cluster Complex refers to a type of solar or wind power project exceeding 40MW led by a local government. Notably, cluster complex projects require the formation and operation of a public-private council involving local residents, fishermen, and other stakeholders from the planning stage to discuss and decide on site selection, profit-sharing arrangements, and environmental protection measures.

With the designation of the Shinan Offshore Wind Power Project as a cluster complex, the government plans to additionally support Renewable Energy Certificates (RECs) with a maximum weighting of 0.1 to encourage the return of project profits to the local community. For offshore wind power, 0.1 REC translates to an additional revenue of approximately KRW 16 million per MW annually. Furthermore, the project will be eligible for government support for the construction costs of common grid connection facilities, enabling efficient transmission of electricity generated from individual wind farms to the mainland.

The Ministry of Trade, Industry and Energy’s deliberation committee highly evaluated the Shinan Offshore Wind Power Project for securing community acceptance by forming a public-private council that includes residents and fishermen in the planned transmission line areas. Additionally, the strategy encompassing the fostering of the offshore wind power equipment industry and related companies was recognized for its significant contribution to the vitalization of the domestic offshore wind power supply chain.

The Ministry of Trade, Industry and Energy added that Jeollanam-do has been actively striving to establish the Shinan Offshore Wind Power Cluster Complex since 2021 by thoroughly reviewing the permit conflicts of existing individual projects and realigning project areas.

The designation of the Shinan Offshore Wind Power Cluster Complex is seen as a significant step forward in the government's energy transition policy. The construction of a large-scale offshore wind power complex is expected not only to secure a stable supply of renewable energy and accelerate the transition to a carbon-neutral society but also to positively impact the local economy and create new jobs. The focus now shifts to the detailed project plans to be established through the public-private council and whether the successful construction of the offshore wind farm can be achieved based on continuous communication and cooperation with the local community.