South Korea's 390MW Shinan-Wi offshore wind project starts construction
The 26-turbine scheme reaches financial close and moves into its build phase
A 390MW offshore wind project in South Korea has moved into its construction phase after reaching financial close. The Shinan-Wi scheme carries a total price tag of about 3.4trn won ($2.26bn) and will install 26 turbines rated at 15MW each.
Once operating, 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. The developer plans to install the country's first commercial offshore substation and to source key substation equipment and cables from domestic suppliers, in a market that has so far relied heavily on foreign equipment and expertise.
Funding was secured through a mix of project finance and policy support, anchored by a 2.89trn won ($1.92bn) agreement with two banks acting as co-lead arrangers, and supplemented by long-term loans from national energy investment funds. The next steps involve negotiations over fishing rights, maritime traffic management, environmental oversight and grid connection.
The developer described the scheme as a large-scale, environmentally friendly initiative that will help revitalise the country's offshore wind market and support its energy transition, adding that it intends to operate the project for the next 25 years.
