Global Wind Giants Include Equinor Exit South Korea as Costs Soar and Permits Stall

Global offshore wind developers are increasingly scaling back or exiting South Korea as rising costs, financing challenges, and complex regulatory requirements undermine project viability. Norway's Equinor recently decided to halt its 750 MW Firefly (Bandibuli) floating offshore wind farm off Ulsan (울산 반딧불 부유식 해상풍력 발전소, 반딧불부유식해상풍력) , a project valued at approximately KRW 6 trillion and regarded as the world's largest single floating offshore wind farm. Industry observers believe the move could affect Equinor's broader Korean portfolio, including the Donghae 1 & Chuja Island offshore wind projects.

Several other international players have also reduced their presence in the market. UK-based Corio Generation closed its Korean subsidiary in March following Macquarie Group's decision to wind down its offshore wind business, casting doubt on previously announced investments worth KRW 1.3 trillion. Denmark's Vestas has indefinitely suspended plans for a turbine manufacturing facility in Mokpo due to insufficient project demand, while Germany's RWE and UK energy major Shell have also withdrawn or divested from Korean offshore wind projects.

Industry participants point to sharply rising development and procurement costs as key challenges. Offshore wind projects, which already require significantly higher installation and maintenance expenditures than onshore wind, have been further affected by soaring raw material prices and elevated interest rates. An Equinor Korea representative noted that the company's headquarters is restructuring around established energy businesses such as LNG, citing escalating offshore wind development costs and weakening profitability. An industry source added that the estimated cost of a 500MW offshore wind project in Korea has risen from KRW 3 trillion to KRW 4 trillion within just two years.

Regulatory complexity remains another major obstacle. Offshore wind projects typically require around 30 permits and approvals from multiple government agencies, while developers have historically borne responsibility for addressing community acceptance issues. Industry stakeholders warn that continued foreign investor withdrawals could jeopardize South Korea's goal of achieving 10.5GW of offshore wind capacity under construction or completed by 2030. In response, a Climate Ministry official said the government will continue gathering industry feedback and strengthening institutional support measures to help offshore wind projects advance more smoothly.

Source: 朝鮮日報 (Chosun Biz)