CIP, SK E&S Achieve Financial Close on South Korean Offshore Wind Project

October 11, 2023, by Adnan Memija

The 99 MW Jeonnam I offshore wind farm in South Korea, being developed jointly by SK E&S and Danish Copenhagen Infrastructure Partners (CIP), has reached financial close. The construction completion of the wind farm is expected by the end of 2024.

Jeonnam Offshore Wind Power was founded in 2020 as a 51-49 joint venture between SK E&S and CIP and the project is expected to become the first Korean commercial-scale offshore wind farm to go into operation in 2024.

The project obtained an electricity business license in 2017 and entered a grid connection agreement with KEPCO, the state-owned utility in South Korea, allowing the project to connect to the grid next year.

“SK E&S is proud to be leading the offshore wind industry in Korea with this landmark project. Jeonnam 1 is expected to provide green electricity equivalent to approximately 60,000 households in Korea,” said Daniel Yun, Jeonnam I CEO.

In 2022, Jeonnam I was awarded a 20-year fixed-price offtake agreement with Korea Hydro & Nuclear Power through Korea’s first wind offtake auction.

Throughout last year, the project also signed manufacturing and construction contracts with Korean suppliers including Hyundai Engineering and Steel Industries, Hyundai Electric and Gaon, KT Submarine, and LS Cable and System.

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The 99 MW project is said to utilise Mokpo New Port as marshalling port throughout construction.

“Korea has a vast potential for offshore wind and CIP has, since entering the Korean market in 2018, invested significantly in developing the country’s wind power projects in multi-giga watts scale and its supply networks and foster a strong industry ecosystem,” said Torsten Lodberg Smed, senior partner at CIP.

“We are proud to have reached financial close and entering the construction phase on Jeonnam 1 and we look forward to completing this landmark project together with our partners.”

In June, CIP unveiled that it is committing to invest USD 350 million (about EUR 320.5 million) into offshore wind projects in Korea.

The investments from CIP’s Flagship funds will support the development and construction of gigawatt-scale offshore wind projects in South Korea which are being developed by Copenhagen Offshore Partners (COP) the exclusive offshore wind development partner to CIP.