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S&P Sees Mixed Views on South Korea's Offshore Wind Power Push Given Lack of Returns, Complex Processes

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The South Korean government's push for more offshore wind power capacity will receive varying sentiments from producers, S&P Global Ratings said in a Tuesday release.

Players may not see ample potential returns from the projects to compensate for the protracted and complicated review processes and associated execution risks, S&P said.

The government is looking at offshore wind power to boost energy self-sufficiency and the country's capacity for use cases, including AI data centers, with a goal of a tenfold increase in the capacity by 2030, according to the rating agency.

While government-linked entities have committed to the efforts, they have only allotted a small portion of their capital expenditure, S&P credit analyst Ji Cheng said.

The analyst expects a minimal credit impact from the measure given the low single-digit percentage of capex allotment to wind power.

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