The 390MW Shinan-Wi offshore wind project in South Korea has moved into its construction phase after closing project financing, according to Splash247 Maritime. Korea Midland Power, the developer, announced a total project cost of approximately 3.4trn won ($2.26bn) and plans to install 26 turbines rated at 15MW each.
Project Overview
| Parameter | Value |
|---|---|
| Capacity | 390 MW |
| Turbines | 26 x 15 MW |
| Annual generation | ~950,000 MWh |
| Homes powered | ~240,000 |
| CO2 reduction | 420,000 tonnes/year |
| Total cost | 3.4trn won ($2.26bn) |
Once online, the project is expected to generate around 950,000MWh of electricity a year, enough to power roughly 240,000 households, while cutting about 420,000 tonnes of greenhouse gas emissions annually, according to Splash247 Maritime.
Financing Structure
Funding has been secured through a combination of project finance and policy support. Korea Midland Power signed a 2.89trn won ($1.92bn) agreement, with KDB and KB Kookmin Bank acting as co-lead arrangers, Splash247 Maritime reported. The project was also selected as an investment initiative under the government’s National Growth Fund, bringing in a 750bn won ($500m) long-term loan, while a further 544bn won ($263bn) came through the Future Energy Fund.
Domestic Supply Chain Impact
Korea Midland Power plans to install the country’s first commercial offshore substation and source key substation equipment and cables from domestic companies, according to Splash247 Maritime. The company believes that it could create more work for local manufacturers, construction firms, and service providers in a market that has so far relied heavily on foreign equipment and expertise.
Next Steps and Regulatory Process
The next step revolves around negotiations over fishing rights, maritime traffic management, environmental oversight, and grid connection, the source reported.
“This project is a large-scale eco-friendly initiative that will contribute to revitalising South Korea’s offshore wind market and national energy transition. We will operate it stably for the next 25 years to realise both clean power supply and regional coexistence,” said Lee Young-Jo, president of Korea Midland Power.
Outlook for South Korea's Offshore Wind Market
By advancing a 390MW commercial-scale project with domestic equipment sourcing, Korea Midland Power aims to reduce reliance on foreign suppliers and stimulate the local supply chain. The project's 25-year operating plan underscores a long-term commitment to clean power generation in a market that has faced earlier development hurdles. The financing model combining commercial bank debt with government policy funds may serve as a template for future offshore wind investments in the country.
