500MW Floating Solar Power at Pyeongtaek Port? The Ambitious Proposal by Governor Kim Dong-yeon and Its Ripple Effects

What if a 500MW floating solar power facility were established at Pyeongtaek Port? This project, officially proposed by Gyeonggi Province Governor Kim Dong-yeon to the Ministry of Oceans and Fisheries, could be a significant turning point in South Korea’s energy transition policy, beyond merely expanding renewable energy. As of November 21, 2025, if this proposal is accepted, it would result in the creation of the largest floating solar complex in the country.

Personally, the most intriguing aspect of this project is the utilization of idle space within existing port infrastructure. The idea of converting approximately 7.27 million square meters (2.2 million pyeong) of dredged idle water surface at Pyeongtaek Port into a renewable energy production space is both practical and innovative. In fact, floating solar power has several advantages over land-based solar power. These include improved generation efficiency (about 10-15%) due to the cooling effect of water, water resource protection through evaporation suppression, and most importantly, the avoidance of using valuable land.

It might be challenging to grasp the magnitude of 500MW, but it is equivalent to half of the 1GW (the size of one nuclear power plant) installed through Gyeonggi Province’s RE100 policy over three years of the 8th civilian administration. For a typical household, this is the amount of electricity that about 200,000 homes can use for a year. In the domestic floating solar market, it is over 12 times the size of the current largest, the Hapcheon Dam floating solar (41MW). It’s truly an overwhelming scale.

However, the true significance of this project likely lies beyond merely expanding power generation. When connected with the ‘Renewable Energy Expansion Agreement’ signed by Gyeonggi Province with Samsung Electronics, SK Hynix, and others on November 11, it appears to be a strategic move to enhance the international competitiveness of the semiconductor industry in the metropolitan area. As more global companies participate in the RE100 (Renewable Energy 100%) initiative, the ability to supply renewable energy has become a key element of industrial competitiveness.

The Rapid Growth of the Global Floating Solar Market and Korea’s Position

The global floating solar market is expected to grow from approximately 4.8GW in 2024 to 16.2GW by 2030, with an average annual growth rate of 22.1%. China holds an overwhelming first place, accounting for over 60% of the total market, followed by Japan with about 15% and Korea with about 8%. In particular, China is leading in terms of technology and economies of scale, with large projects such as 320MW in Shandong Province’s Tai’an County and 150MW in Anhui Province coming online consecutively.

In the Korean market, major players include Hanwha Solutions, Korea Water Resources Corporation, and SK Innovation. Hanwha Solutions successfully completed the 41MW Hapcheon Dam project and is currently pursuing a large-scale 2.1GW project in Saemangeum. However, the Saemangeum project is facing delays due to technical challenges unique to maritime environments, such as salt damage and typhoons.

In this context, the Pyeongtaek Port floating solar project holds significant strategic meaning. Since it utilizes water surfaces within the port rather than at sea, there is relatively less concern about salt damage or extreme weather conditions, and its proximity to land greatly reduces construction and maintenance costs. In fact, advanced companies like the Netherlands’ Floatovoltaics are also prioritizing projects in protected waters such as ports or reservoirs.

The Link Between the RE100 Policy and the Semiconductor Industry

The most crucial background of this project is the increasing RE100 requirements from global semiconductor companies. Apple aims for carbon neutrality across its entire supply chain by 2030, which directly pressures major suppliers like Samsung Electronics and SK Hynix. TSMC has set a carbon neutrality goal for 2050 and is investing billions of dollars annually in securing renewable energy in Taiwan.

The electricity consumption of semiconductor companies in Gyeonggi Province highlights the severity of this issue. Samsung Electronics’ Hwaseong plant consumes about 6TWh annually, similar to the total electricity consumption of Busan City. SK Hynix’s Icheon plant also uses about 2.5TWh annually. To meet such large-scale power demands with renewable energy, substantial generation infrastructure is necessary.

What’s interesting here is Gyeonggi Province’s approach. They are not just increasing power generation but also considering installing solar panels on idle spaces like building roofs and parking lots during the expansion of the port hinterland. This appears to be an integrated approach to strengthening energy security through a distributed energy system while supporting companies’ RE100 achievements.

In fact, similar approaches are being taken at Germany’s Hamburg Port and the Netherlands’ Rotterdam Port. In Hamburg, about 100MW of solar facilities are installed in the port area, supplying over 30% of the port’s operational power with renewable energy. Rotterdam is going further by developing into an integrated energy hub linked with offshore wind and hydrogen production.

If the Pyeongtaek Port project succeeds, it could serve as an opportunity for Korea to transform ports from mere logistics hubs into energy hubs, keeping pace with this global trend. Especially, Pyeongtaek Port has a geographical advantage as the largest port on the west coast, close to China, and could play a pivotal role in Northeast Asian energy cooperation.

However, there are also realistic challenges. First, complex licensing procedures such as obtaining permission to use public waters must be navigated, requiring coordination among multiple ministries, including the Ministry of Oceans and Fisheries, the Ministry of Trade, Industry and Energy, and the Ministry of Environment. Additionally, impacts on port operations, harmony with fishing activities, and environmental impact assessments must be carefully considered.

There are also economic aspects to consider. The construction cost of floating solar is about 20-30% higher than land-based solar. For a 500MW scale, an investment of approximately 500 to 600 billion won is estimated, and how to secure funding and profitability will be crucial. Fortunately, with the recent increase in RE100 demand, the premium on renewable energy power is rising, making it quite possible to secure economic viability through long-term power purchase agreements (PPAs).

It is encouraging that Minister of Oceans and Fisheries Jeon Jae-soo responded positively, saying, “I fully agree with the purpose.” The government is also exploring various measures to achieve the 2030 target of 30% renewable energy generation. Especially for land-based solar, difficulties in securing sites and opposition from local residents have revealed limitations, increasing the importance of alternative methods like floating solar.

Personally, if this project succeeds, it could present a new model for Korea’s energy transition policy. It holds significant meaning in several aspects, including expanding renewable energy by utilizing idle spaces in existing infrastructure, simultaneously strengthening the local economy and industrial competitiveness, and enhancing policy execution through cooperation between central and local governments. I look forward to seeing how this ambitious plan will be realized as the working council is formed and the licensing process progresses.

This article was written after reading the Kim Dong-yeon’s Proposal for 500MW Floating Solar at Pyeongtaek Port: Starting the Largest Domestic Project article, adding personal opinions and analysis.

Disclaimer: This blog is not a news outlet, and the content is the author’s personal opinion. The responsibility for investment decisions lies with the investor, and no liability is accepted for investment losses based on the content of this article.