Despite its high potential, the domestic offshore wind power industry has experienced a period of stagnation, with complex permitting procedures blocking progress and requiring more than 10 years to break ground. However, the situation reversed when the 'Offshore Wind Special Act' went into full effect on the 26th of last month. As permitting risks have been resolved, delayed investments by construction companies are materializing, showing vitality behind the scenes. With administrative uncertainty cleared, construction companies are now boldly transforming their role and status into 'energy developers' who oversee everything from project planning to operations, going beyond simple construction.
From EPC Contractors to Energy Developers
Hyundai E&C is moving at the forefront. Having accumulated construction experience at the Southwest Sea demonstration complex and Jeju Hallim offshore wind farm, Hyundai E&C is making its strategic move in the second quarter of this year by breaking ground on the 390MW 'Sinan Ui Offshore Wind' project. This project is significant in that it encompasses not only the entire EPC (Engineering, Procurement, Construction) process connecting foundation structures to offshore substations, but also financing and 20-year operating rights. It represents the company's ambition to take its first step as a true 'global energy developer.'
The enthusiasm on site is quickly spreading to other construction companies. Hoban Industry, a subsidiary of Hoban Group, is joining hands with group affiliates including Taihan Cable at the 'Yeonggwang Nakwol' site, focusing capabilities on submarine cable installation and grid connection. Kolon Global has also completed the environmental impact assessment for the 2 trillion won 'Wando Offshore Wind' project and anticipates benefiting from early groundbreaking that the Offshore Wind Act will bring.
