South Korea has launched tenders for 1GW of fixed bottom offshore, 500MW of floating offshore, and 300MW of onshore wind.
The government has set a deadline for bids of 22 November 2024.
As well as the reserved capacity for 1GW of fixed bottom offshore and 500MW of floating wind, Seoul has also set a pre-defined ceiling price at 176.565KRW/MWh.
The ceiling price also applies to floating in principle but may be reassessed after deadline if projects can’t meet this, said industry sources.
The move comes after the country’s Trade, Industry and Energy Vice Minister Namho Choe announced the Offshore Wind Power Competitive Bidding Roadmap in August.
Under the blueprint, Seoul said it will launch approximately 7GW-8GW worth of offshore tenders during a two-year period.
The latest tender will feature prolonged implementation timelines.
For projects over 300MW, the schedule will now be a 78-month period from contract signing and for floating projects, the auction guideline also describes the opportunity for a slight extension.
The government revealed it will adopt a two-stage process to bidding in its roadmap.
The first round of evaluation will assess the nonprice attributes to select 120%-150% of submitted bid quantity and the second round includes price competition based on an evaluation of price attributes.
When the first- and second-round scores are added up, the bidder with the highest total score will be selected as the winner.
Seoul intends to increase the score allotted for nonprice criteria from the current 40 to 50, as well as incorporating aspects like maintenance, security, and public works as additional evaluation criteria.
The tender for 500MW of floating projects is the country’s first for the sector.