Sinan Ui offshore wind farm breaks ground as first National Growth Fund project

Construction has begun on the Sinan Ui offshore wind farm, the first project backed by the National Growth Fund and financed entirely with domestic capital.

The Ministry of Climate, Environment and Energy said a ground-breaking ceremony was held Thursday morning for the wind power complex off the coast of Uido Island in Sinan-gun, South Jeolla Province.

Requiring a total investment of 3.4 trillion won ($2.28 billion), the 390 MW complex is considered the first large-scale offshore wind farm developed solely with domestic capital. It will also be the first in South Korea to deploy 15 MW-class turbines. Hanwha Ocean, Korea Midland Power, SK Eterix and Hyundai E&C are among the participants. The project targets commercial operations in January 2029.

Selected as the first investment project under the National Growth Fund, 40 percent of the project cost — 1.3 trillion won — will be financed through the National Growth Fund and the Future Energy Fund.

For all key components except turbines — including installation vessels, offshore substations, foundation structures and submarine cables — the project draws on domestic firms: installation vessels and the offshore substation (Hanwha Ocean), foundation structures (Hyundai Steel Industries), and submarine cables (LS Cable & System). The project is expected to help build experience across South Korea's offshore wind supply chain.

Once completed, the complex will generate 162 GWh of electricity annually — enough to power about 300,000 households. Power revenues will be shared with residents of Sinan-gun through a community fund.

"All key components except turbines will be supplied by domestic companies," the government said, adding that the project "will also contribute to building experience in the domestic offshore wind supply chain."

Kim Sung-hwan, minister of climate, environment and energy, said the Sinan Ui offshore wind farm is "the first large-scale offshore wind project in South Korea driven entirely by domestic capital," calling it "a core project that will simultaneously advance the supply of clean power needed in the age of an electric nation and strengthen the domestic industrial ecosystem."

Kim added that the government would "actively support this project so it proceeds without delay as planned, helping achieve the 10.5 GW construction and ground-breaking target by 2030 and contributing to stable power supply for the three mega-projects in the Honam region — AI data centers, semiconductors and others."

Meanwhile, the ministry announced Thursday the first round of this year's fixed-price contract competitive bidding for solar power through the Korea Energy Agency website.

The total announced capacity is around 1,000 MW, and the bid ceiling price has been set at 147.686 won per kWh, down 5 percent from last year's ceiling. However, projects using carbon verification modules rated at grade 1 or 2 will be eligible for a preferential price on top of the selected bid price, in recognition of their contribution to the domestic industry and supply chain.