SK Innovation E&S, in partnership with Denmark’s Copenhagen Infrastructure Partners (CIP), announced on May 21 that the first phase of the Jeonnam Offshore Wind Project, located near Jaeun Island in Sinan County, South Jeolla Province, has begun commercial operation as of May 16.
This project marks the largest privately-led offshore wind farm in South Korea, with an annual electricity generation capacity of approximately 310.7 million kWh, enough to supply around 90,000 households for a year. Compared to coal-fired power plants, this project is expected to reduce greenhouse gas emissions by approximately 240,000 tons annually.
Funding for this initiative was secured through non-recourse project financing, which relies solely on the project’s future cash flows and performance, without any collateral backing.
SK Innovation E&S and CIP established a jointly owned company, Jeonnam Offshore Wind Co., Ltd., with a stake of 51% and 49%, respectively. The project received initial approval for power generation in 2017 and secured permits for use of water surfaces in 2022.
Construction began in both offshore and onshore locations in 2023, with 10 wind turbines installed, leading to the start of commercial operations in early 2024.
Looking ahead, SK Innovation E&S plans to expand the project by constructing two additional phases, each with a capacity of 399 MW, by the end of 2027, bringing the total capacity to approximately 900 MW. This scale is comparable to that of a nuclear power plant in South Korea and is expected to contribute significantly toward the country’s renewable energy expansion and greenhouse gas reduction targets.
Notably, this project features the application of Korea’s first mono-pile substructure, which has been optimized for the stable wind conditions off Jaeun Island. The site’s favorable wind speeds and shallow waters make it an ideal location for offshore wind development.
The company also emphasizes its efforts in local community engagement, sharing a portion of the project’s revenue with residents of Sinan County and increasing the use of domestically produced equipment to bolster the local economy.
Choo Hyung-wook, CEO of SK Innovation E&S, stated, “The Jeonnam Offshore Wind Project signifies a pioneering step forward for Korea’s offshore wind industry,” adding, “We will continue to lead the global renewable energy market through cooperation with local communities and innovative technologies.”
South Jeolla Province and Sinan County have plans to develop a total 8.2 GW offshore wind capacity by 2035. The Jeonnam Offshore Wind Project stands as the first step toward achieving this ambitious goal.
