Foreign companies show interest in wind power in South Korea

21. October 2021

A growing number of globally significant names in wind power are entering the South Korean market. In addition, domestic power companies are increasing their cooperation with the foreign companies. Under the current circumstances, this will further increase the country’s dependence on foreign wind power. For example, Vesta, the world’s largest wind turbine manufacturer, signed a memorandum of understanding with Korea’s South-East Power and CS Wind last month. Orsted, the world’s largest producer of offshore wind power, had already established a subsidiary in South Korea two years ago and is now participating in a 1.6 GW wind power project in Incheon. The wind farm is scheduled to be commissioned in 2026. The Danish company invested the equivalent of US$6.75 billion in the project and is working on it together with POSCO. According to an agreement reached between the two companies, POSCO will supply steel parts to Orsted, and the electricity generated by wind power will be used to produce green hydrogen. Such steel parts and also other components can often be subject to KC certification in Korea, i.e. they must undergo product certification before they can be sold and used in the respective market.

 

 

Overall, there is increasing interest from international companies in the growing market for wind power in South Korea. This is according to information and figures from the Ministry of Trade, Industry and Energy. Plans are in place to expand the country’s annual wind power capacity to 12 GW by 2030. This would put South Korea among the global top 5. To achieve this goal, the ministry is allocating the equivalent of $55.7 billion in funding for the construction of wind farms and $38.8 billion for a 20-year operating period. Meanwhile, the competitiveness of South Korea’s wind power industry has not yet reached a satisfactory level. Doosan Heavy Industries & Construction is working on developing an 8 MW wind turbine, and Unison is working on a 10 MW version. However, they cannot keep up with foreign companies, including Vestas. Their wind turbines generate 12 MW of power and are already in operation in Denmark, and Vestas is already working on a 15 MW turbine.

Currently, more than half of all turbines and parts used in the wind power sector consist of imported components. Vestas’ market share is 34.3 percent, while Siemens Gamesa’s share is 10 percent. Korean companies such as Unison and Doosan Heavy Industries & Construction stand at 15.4 and 13.4 percent market share, respectively. South Korea is considered one of the most important and innovative industrial nations in the world. Many products imported into South Korea have to be tested and certified in advance. MPR International GmbH recommends itself as a partner for your Korea certification. We gladly check for you without obligation if your products are subject to certification and create an attractive offer for you.

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