Offshore wind accounts for over 84% of all prospective renewable energy capacity in the region, or 82 gigawatts (GW), at an estimated cost of USD 381 billion, compared to just 21% in the rest of the world, according to the latest data in the Global Wind Power Tracker. Japan has about 27 GW of offshore wind in the development pipeline, South Korea has 44 GW and Taiwan has 11 GW.
Yet the scale of these ambitions contrasts sharply with the readiness of the three countries’ offshore wind markets, as East Asia is still wrestling with the growing pains of this emerging industry. All three target a goal of roughly 10 GW to be operational by 2030, but projects are not breaking ground fast enough to meet this milestone.
Still the three markets are addressing barriers to the nascent sector’s growth.
Japan is actively assessing offshore wind promotional zone designations. Taiwan's removal of zero-price bids and easing of localization requirements in its newly released auction rules address previous deal-breakers in bankability; the country is formalizing a re-zoning initiative to expand offshore wind development areas. South Korea’s shared grid connection model for offshore wind farms is a promising approach to reducing offshore wind integration and operating costs by lowering power generation and upfront investment costs in establishing substations through shared transmission lines.
Sophie Lu, senior researcher at Global Energy Monitor and co-author of the brief, said, “There is a clear appetite for offshore wind in East Asia. The types of creative policymaking and support for project developers can mobilize the offshore wind market as a means to increase energy independence in the region.”
