South Korea’s 390MW Sinan-Ui offshore wind project is facing scrutiny over its projected 29.6% capacity factor and a public support package that could reach 7.9 trillion won.
The project is led by Hanwha Ocean and Korea Midland Power, with commercial operation planned from January 2029.
The financing package draws on several public sources, including the Advanced Strategic Industry Fund, the Future Energy Fund and the Industrial Bank of Korea. Subsidies and guarantees linked to the project are set to extend through 2048.
Questions have focused on whether the scale and duration of the public backing are justified by the project’s expected operating performance.
The Sinan-Ui project has also secured long-term fixed-price contracts. Critics have questioned whether its expected generation capability was sufficiently verified before long-term financial commitments were approved.
The projected 29.6% capacity factor has become a central point in the criticism surrounding the level of public support committed to the development.
The concerns have also raised wider questions over the economic rationale for offshore wind investment in South Korea and the use of government resources for such projects.
Commercial operation remains scheduled for January 2029, while the associated subsidies and guarantees are due to continue through 2048.
