South Korea's bottom-fixed tender attracts six bidders
Oversubscribed tender attracted offers from international and domestic players, with results expected by end of month
South Korea has published initial details of bidders participating in the country's auction of fixed-bottom offshore wind capacity, launched earlier this year.
The auction was oversubscribed, with six projects bidding a potential 1.5GW, although the auction rules allow for overplanting.
The Korea Energy Agency is not expected to provide details of pricing or outcomes until the end of July, but the projects that were submitted this week were outlined.
They included a bid by Copenhagen Infrastructure Partners (CIP) based on its 504MW Haesong 2 project. The Danish renewables fund manager is already developing the Haesong 1 and Haesong 3 wind farm projects off the west coast of Shinan, Jeonnam.
Korea's Myungwoon Industrial Development also submitted a bid with the 340MW Hanbit offshore wind project.
The CIP bid stated that it would use wind turbines with a rating of 14-15MW each, while Myungwoon's bid referred to 13.6MW machines.
Other bids in the government-led auction included one from Korea Electric Power Corporation (Kepco), based on the 400MW Southwest Offshore phase two demonstration area project.
A bid from Jeju Energy and Kepco spin-off East-West Power, proposed the 100MW Handong-Pyeongdae project.
Corio Generation and Korea South Power Company submitted the 99MW Dadaepo project and a consortium made up of CGO Corporation, Kepco and Hyundai submitted their 80MW Aphae wind farm project.
Korea has set the ceiling price for both floating and fixed projects at KRW176.6/kWh ($128.4/MWh) on the mainland and KRW177.6/kWh on Jeju Island.
Offtake contracts last 20 years for these government-led developments, granting Renewable Energy Certificates (REC) at a fixed price, with no escalation or indexation, noted Benjamin Swarbrick, a market analyst for the APAC region with TGS 4C in a LinkedIn post.
Government-led projects will be granted a REC multiplier of KRW3.66/kWh and a preferential premium of KRW27.84/kWh.
The auction operates in a two-stage system, with 50% of evaluation weighting for non-price factors and 50% for price factors, staged sequentially.
An auction including onshore wind power and floating offshore wind power has been scheduled for the second half of the year.
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