The South Korea wind energy market is expected to grow at a CAGR of more than 7% during the forecast period. The primary driver for the market includes the government efforts to reduce the dependency on fossil fuels, and thereby to improve the air quality of the country. However, lack of investment, on account of the low rate of return on invested capital is likely to hinder the market growth during the forecast period.

  • With significant installed capacity in 2019, onshore wind energy is likely to dominate the market during the forecast period
  • With the objective of increasing its renewable share in the country’s energy mix to 20% by 2030, South Korea is expected to increase its renewable capacity up to 63.8 gigawatts by 2030. Moreover, wind energy in the country is expected to increase its capacity to nearly 17.7 GW by 2030, which is likely to create an opportunity for the market to grow in the near future.
  • Upcoming offshore projects, along with the rising demand of renewable energy is likely to drive the market during the forecast period.



Key Market Trends

Onshore Wind Energy is likely to Dominate the Market

  • Onshore wind energy is the prominent segment in the South Korean wind energy sector that holds nearly 1.43 GW of installed capacity as of 2019. With an increase in demand for cleaner energy, the segment is expected to grow further with the implementation of new onshore wind projects.
  • Onshore wind turbines are easier to install, and are low in investment, as compared to the offshore. According to the Energy Information Administration (EIA), offshore wind is 2.6 times more expensive than onshore wind power and is 3.4 times more expensive than power produced by a natural gas combined-cycle plant.
  • As of 2019, the country has nearly five onshore wind projects, with an approximate capacity of more than 160 MW. The projects are likely to get a commission from 2021.
  • Cheongsong Myeonbong wind power project is one of the prominent projects that are under construction. The installed capacity of the project is nearly 42 MW, which is likely to get commission by 2021. Thus, the completion of the under-construction and planned projects is likely to increase the overall onshore installed capacity and is expected to dominate the wind energy market of the country.



Upcoming Offshore Wind Projects to Drive the Market

  • Offshore wind energy has less installed capacity, as compared to onshore. As of 2019, offshore wind has nearly 73 MW of installed capacity, but it is expected to increase with government importance towards the potential of offshore wind capacity of the county.
  • In 2019, the country announced its plans to install 1.4 GW of offshore wind projects in Ulsan city. The project is estimated to have an installed capacity of around 400MW and is expected to get completed by 2022.
  • Donghae 1 is another offshore wind project, with an approximate capacity of around 200 MW. Equinor and two Korean partners are likely to install the project and is expected to get commission during the forecast period.
  • Moreover, with rising challenges like limited onshore land for setup onshore wind farm, the government concentration towards offshore is growing and is likely to invest nearly KRW 20 billion toward research and development of wind technology, which will develop the offshore sector during the upcoming years.



Competitive Landscape

The South Korea wind energy market is moderately fragmented. The key players in the market include Equinor ASA, Vestas Wind Systems A/S, Siemens Gamesa Renewable Energy SA, Global Wind Energy Co. Ltd., and Hyosung Heavy Industries.

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