Korea Midland Power is moving the 390MW Shinan-Wi offshore wind project into construction after completing its financing package.
The project, valued at approximately 3.4 trillion won ($2.26 billion), will comprise 26 turbines with a capacity of 15MW each. Annual electricity generation is expected to reach about 950,000MWh, equivalent to the consumption of roughly 240,000 households.
The wind farm is also expected to reduce greenhouse gas emissions by around 420,000 tonnes per year.
Korea Midland Power plans to install South Korea’s first commercial offshore substation at the project. Key substation equipment and cables will be supplied by domestic companies, increasing the involvement of local manufacturers, construction companies and service providers.
The financing includes a 2.89 trillion won ($1.92 billion) project finance agreement. KDB and KB Kookmin Bank are acting as co-lead arrangers.
Shinan-Wi was also selected as an investment project under the government’s National Growth Fund, securing a 750 billion won ($500 million) long-term loan. A further 544 billion won was provided through the Future Energy Fund.
The project will now proceed with negotiations covering fishing rights, maritime traffic management, environmental oversight and grid connection.
Lee Young-Jo, president of Korea Midland Power, said the company plans to operate the project for 25 years, supporting clean electricity supply and coexistence with local communities.
