South Korea is seeking bidders for 2.8 GW of solar and wind energy projects. (Illustrative Photo; Photo Credit: hyotographics/Shutterstock.com)  
Tenders

South Korea Launches 2.8 GW Renewable Energy Tender

Solar PV with 1 GW capacity gets a low-carbon module pricing

Anu Bhambhani

  • South Korea’s MOTIE has launched 2 separate tenders for solar PV and wind energy  

  • For solar PV, the capacity allocation of 1 GW has a ceiling tariff level of KRW 157.307/MWh  

  • It has also included preferential prices for low-carbon solar modules in this tender  

  • For wind energy, the 1.8 GW capacity is divided between onshore and offshore projects 

South Korea’s Ministry of Trade, Industry and Energy (MOTIE) has launched a renewable energy tender for 2.8 GW capacity, comprising 1.8 GW of wind and 1 GW of solar PV.  

For solar PV, the ceiling price is set at KRW 157.307/MWh which includes the cost of grid connection. 

In this tender, the government has listed the following preferential prices for low-carbon modules: 

  • KRW 12,000/MWh for modules with a carbon emission level of 630kg CO2/kW or less 

  • KRW 9,000/MWh for modules with a carbon emission level of 630kg CO2/kW or a maximum of 670kg CO2/kW  

  • KRW 2,000/MWh for modules with a carbon emission level ranging from 670kg CO2/kW to 730kg CO2/kW. 

When installing 2 or more types of solar modules together, a preferential price is given based on the product with the highest carbon emissions.   

The solar PV tender was launched on October 25, 2024. The last date to submit bids is November 15, 2024.   

The competitive bidding for wind energy includes 300 MW onshore and 1.5 GW offshore wind which is further divided into 1 GW of fixed bottom, which is a new category, and 500 MW of floating wind capacity. For wind energy, the submission date is November 22, 2024, with a ceiling price of KRW 165.143/MWh for onshore and KRW 176.565/MWh for offshore. 

The Ministry of Trade, Industry and Energy (MOTIE) said it plans to conduct a pilot project for the power purchase agreement (PPA) market starting with a minimum 1 MW capacity. This will take into account the requirements of RE100 companies. It added that the pilot operation is limited to the parent companies of 36 RE100 participating companies.  

In July this year, South Korea released a draft blueprint of the country’s 11th Basic Electricity Plan under which the solar PV target for 2038 is 74.8 GW and for wind energy, it is 40.7 GW, up from a combined 23 GW in 2022 (see South Korea Releases Draft 11th Basic Electricity Plan).