Korea to launch H2 2026 offshore wind auction with revised rules
Korea's Ministry of Climate, Energy and Environment announced plans for the H2 2026 offshore wind fixed-price contract auction, expected to offer over 2 GW. The government is considering extending contract terms to 25 years to lower ceiling prices, while also enhancing evaluation for domestic turbine technology and supply chain utilization.
Our take
Will Korea's revised offshore wind auction rules favour developers with Korean supply chains?
Our view: Korean industrial content is becoming the entry ticket to this auction, so foreign developers need a Korean turbine and supply-chain partner to win, but winning will not secure returns while the ceiling price and contract term are open and the government wants the price lower.
In favour of developers with Korean partners: in the last round every project that used Korean supply chains in areas of Korean strength won, and the turbine test now asks what technology and rights a Korean firm actually receives, which rewards a partnership already in place over an assembly plan written for the bid. Against: the ceiling price is set separately from the content test, on cost outlooks and competition, and the government is pursuing lower generation costs and weighing a 25-year term partly to cut it, so content commitments may have to be met at a lower tariff. On balance, the supply-chain partner decides who wins, and the ceiling price the RPS committee sets this month decides whether winning pays.
What the source says
- The government is considering extending the fixed-price contract period from 20 years to 25 years to lower the ceiling price, though 20 years remains the current standard.
- The bidding announcement is targeted for late October or early November 2026, with applications open for 30 working days and selection results notified individually from December 2026.
- The ceiling price and bidding capacity for the H2 2026 auction will be finalized by the RPS Operating Committee in October 2026.
- Evaluation criteria for domestic turbine production will be more specific, requiring bidders to categorize production as technology transfer, license production, or OEM, each with distinct proof requirements for technology and rights.
- The 'project progress' evaluation score is reduced from 2 points to 0 points due to lack of differentiation and effectiveness.
- The 'investment, talent development, and job creation' item within maintenance base evaluation increased from 2 to 3 points.
- The 'vessel and personnel information security' item within security evaluation increased from 2 to 3 points.
- Vessel evaluation categories expanded from four to six, adding turbine installation vessels, substructure installation vessels, Crew Transfer Vessels (CTV), and Service Operation Vessels (SOV), with evaluation including country of manufacture and crew composition.
- A new maximum 1-point bonus is introduced for 'renewable energy grid connection余裕程度' (grid connection余裕度) for plans that improve national grid efficiency, such as utilizing retired power plant grid connections or common connection facilities, though the bonus cannot exceed 4 points for this item.
- Floating offshore wind supply chain evaluation will now include mooring system materials, in addition to transition pieces and substructure backplates.
- Kwon Gi-man Kwon Gi-man stated that domestic supply chain utilization, particularly in areas where Korean industry is strong like substructures, was a key factor in successful bids in the previous auction.
For investors — Offshore wind developers and their equity partners: line up turbine suppliers willing to transfer technology or license production to Korean firms, and document it; OEM production now has to show its actual production scope and quality responsibility. A new bonus of up to 1 point rewards connection plans that use retired power plant grid connections or common connection facilities.
Lenders: model returns under both a 20-year and a 25-year term at a lower ceiling price, and size debt only once the RPS committee publishes the ceiling price and volume.
Watch: Finalization of H2 2026 offshore wind auction ceiling price and capacity by the RPS Operating Committee, and the official announcement of the H2 2026 offshore wind fixed-price contract competitive bidding.
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