Korea South-East Power (KOEN) has decided to pull out of the 390MW Shinan-Ui offshore wind farm, which it had been developing in a consortium with Hanwha Ocean and SK D&D.
The public utility owns a 37% share in the project, which is scheduled to be built off the coast of Sinan County at the southwestern tip of the Korean peninsula.
In 2023 Vestas signed a preferred supplier agreement with the consortium to provide 26 V236-15MW turbines for the project.
Aegir Insights APAC Regional Lead Simon Engfred Schlichting said: “The decision of KOEN to exit the Shinan-Ui project could signal a possible change in public utilities’ ability to participate in project development for offshore wind in South Korea, which has otherwise been heavily utilized.”
He added that public sector withdrawals from projects could hurt investor confidence in projects, as local support for projects is vital in the sector.