OMNI Features｜The Norwegian Government Establishes "Common State Aid Model" Postpones Floating Wind Tender Until 2025．South Korean Unveils 100 Trillion Won Plan to Promote Offshore Wind．Minister of Energy States Canada's Lack of Interest in Investing in LNG Facilities

(Source: Norwegian Ministry of Petroleum and Energy)

｜The Norwegian Government Establishes "Common State Aid Model" Postpones Floating Wind Tender Until 2025
The award of 1.5 GW of floating wind capacity in Norway, which was planned for this year, will be held in 2025 as the Norwegian government plans to have the subsidy model in place and announced before allocating the Utsira Nord (Utsira North) offshore areas for development.

The government says the decision to establish and notify about "a common model for state aid" for Utsira Nord before project areas are awarded is based on the dialogue with the European Free Trade Association's (EFTA) Surveillance Authority (ESA). The government says issuing the notice on the state aid model before project areas are allocated will provide better predictability as all necessary clarifications will be in place before the award of development sites, as well as legal certainty for the applicants that the allocation model is valid.

｜South Korean Unveils 100 Trillion Won Plan to Promote Offshore Wind Power Generation
As large offshore wind power projects are being actively pursued in South Korea, it is estimated that investments could reach up to 100 trillion won by 2030. The government aims to deploy offshore wind power facilities with a total capacity of 14.3 GW domestically by 2030.

Currently, there are three small commercial operational offshore wind power sites in South Korea: Tamra in Jeju generates 30 MW, the Southwestern region has 60 MW, and Yeonggwang has 34.5 MW. Therefore, the cumulative capacity of these individual sites totals a mere 124.5 MW, or 0.1245 GW.

South Korea still lacks a solid foundation in the sector, yet it faces the challenge of supplying over 14 GW of offshore wind power in the near future. Assuming construction costs of 7 trillion won per 1 GW, it would require private investment primarily, totaling approximately 100 trillion won, to supply 14.3 GW of offshore wind power in South Korea by 2030.

According to the "10th Basic Plan for Electricity Supply and Demand", the Ministry of Trade, Industry and Energy, the current situation calls for a gradual increase in the proportion of renewable energy generation, which currently falls short of 10 percent, to 21.6 percent by 2030 and 30.6 percent by 2036. The government aims to achieve this by progressively enhancing the overall renewable energy capacity, targeted at approximately 40 GW by 2030. As part of this plan, around one-third of the expanded renewable energy capacity will be fulfilled through offshore wind power.

｜Minister of Energy States Canada's Lack of Interest in Investing in LNG Facilities
Canada is not interested in subsidizing future liquefied natural gas (LNG) projects, including electrification of projects currently in the works, Energy and Natural Resources Minister Jonathan Wilkinson said in a television interview on Sunday.

Wilkinson stated that meeting a 2030 target for reducing greenhouse gas emissions will require LNG production to rely on clean electricity. However, the government opposes using government money to fund inefficient fossil fuel subsidies. The government is not interested in investing in LNG facilities.

Reference: offshorewind.biz｜Reuters｜BusinessKorea