RWE eager to provide offshore wind power solution to Korea
German firm develops projects in Taean, Sinan, Incheon
The Korea country manager of Germany’s RWE Renewables, a major player in the renewable energy market which is part of RWE Group and the world’s second-largest offshore wind power generator, highlighted on Monday that the company’s technologies, if fully implemented in Korean waters, could produce enough clean electricity to help the country achieve its carbon neutrality goal by 2050.
In an interview with The Korea Times, RWE Renewables’ Country Manager in Korea David Jones pointed out the country’s globally competitive supply chain, power consumption and advanced industrial economy as its strengths.
Arriving in Korea in 2022 as the head of RWE’s offshore development — a year after the establishment of the regional office in Seoul — the Australian national has been meticulously assessing the country’s potential, exploring ways to boost partnerships and expand a pipeline of projects. His primary objective was to work together with local communities, partners, industry and supply chain to build a long-term sustainable business and offshore wind industry.
Over the past two years, RWE’s offshore wind power project portfolio has expanded by over 3 gigawatts (GW) in total, exclusively in the waters off western Korea. The company anticipates the development of a new 500 megawatt (MW) farm off the coast of Taean, South Chungcheong Province, as well as another 500 MW in the waters off Sinan, South Jeolla Province. Additionally, in Incheon, RWE intends to deploy wind measurement equipment for a local 2 GW wind farm site.
During his tenure in Korea, Jones has forged new partnerships with major Korean companies, including Hyundai Engineering & Construction. RWE’s corporate network in Korea further extends to LS Cable and POSCO, both of which have provided subsea cables and steel, respectively.
Due to the firm’s accomplishments under his leadership and his assessment of the country’s industrial, environmental, and legal conditions, Jones has concluded that RWE stands a strong chance of enhancing its energy business in Korea. He has also considered the potential contributions his company can make to the country, particularly as the Korean government aims to develop 14.3 GW of offshore wind power by 2030 and 26.7 GW by 2036. Presently, the national capacity amounts to less than 200 MW.
“Korea has strong fundamentals. It is the eighth-largest power consumer globally, the third largest per capita consumer, and is an advanced, industrial economy with export-led growth and needs to decarbonize to maintain competitiveness,” Jones said. “Korea also has a globally competitive and capable local supply chain supporting offshore oil and gas as well as shipbuilding. This has a great potential to support the build-out of renewable energy projects in Korea.”
Jones emphasized that RWE’s involvement extends beyond merely constructing offshore wind turbines in various countries. The company also oversees their operation throughout their entire lifespan, from inception to decommissioning, often described as “from cradle to grave.” Over the past two decades, RWE has been particularly active in the waters off the European coasts, building and operating turbines in countries such as Germany, the U.K., Sweden, and the Netherlands. Moreover, it is currently planning additional projects in countries including Denmark. Additionally, RWE has secured projects in the U.S. and Japan and is going through further auction phases as part of its expansion efforts.
Constructing turbines in waters of various countries represents only a fraction of the complexities involved in RWE’s projects. In addition to building infrastructure, the company must also cultivate trust and secure consent from local communities for every new offshore wind farm. Maintaining positive relationships with these communities throughout the entire lifecycle of the project is crucial. When Jones assumed his position in Seoul, he recognized that the landscape presented not only business prospects, but also challenges, particularly from local fishery communities that may oppose turbine construction. Furthermore, the regulatory framework in Korea to support the clean energy sector remained largely incomplete at that time, presenting further hurdles for development.
However, the country head said he was undeterred by the challenges.
“We understand that our best projects will never be built without support of and working together with local communities,” Jones said. “There is no ‘one-size-fits-all’ model. We want to draw on our global experiences and work closely with local communities to find the best ways for our offshore wind farms to coexist with local stakeholders.”
To strengthen its connection with local communities, RWE Renewables Korea initiated the recruitment of local graduate talent. Last year, the company selected a Korean male intern from applicants to participate in a year-long program. This program focused on various aspects such as business site location, obtaining legal permits, and managing local stakeholders. Additionally, the intern had the opportunity to visit RWE’s headquarters in Germany and inspect some of its wind farms worldwide. Upon completing the program next month, he will transition into a full-time employee of the company.
“This program shows our commitment to the Korean market to say we’re here for the long term and to have a fully sustainable Korean company operating,” Jones said. “We’ll bring on board more local graduates to the program in the future.”