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Perspective view of the "Yeosu Geumodo Offshore Wind Power Project" pursued by DL Group's DL Energy and Korea Mid-Power in the area of Yeosu, South Jeolla Province. /DL Energy

The Yeosu Geumodo offshore wind power project in South Jeolla Province, jointly pursued by DL Group's DL Energy and Korea Mid-Power, is set to gain momentum after being selected for the government's fixed-price contract competitive bidding.

DL Energy announced on July 2 that the "Yeosu Geumodo Offshore Wind Power Project," which it is developing alongside Korea Mid-Power, was selected as the final successful bid in the public-led sector of the "First Half of 2026 Wind Power Fixed-Price Contract Competitive Bidding" hosted by the Korea Energy Agency.

The wind power fixed-price contract competitive bidding is a system that grants the right to sell electricity at a fixed price for a set period. This bidding drew high interest, with the competition rate soaring to 2 to 1 for the first time since the introduction of the offshore wind competitive bidding system. Two projects participated in the public-led sector, where the government evaluates public institution-led projects separately, and among them, the 160 MW (megawatt) Yeosu Geumodo offshore wind power project was finally selected.

Industry insiders attribute the selection to the project receiving high scores in the industrial and economic effect evaluations, driven by plans to utilize domestic wind turbines and a stable project structure. With this successful bid, the project has secured a foundation to sell electricity at a fixed price for the next 20 years.

The project is being implemented by a special purpose company (SPC) jointly established by DL Energy and Korea Mid-Power. The two companies are preparing for engineering, procurement, and construction (EPC) contracts and project financing (PF) procurement procedures, aiming for a final investment decision (FID) in December 2027, with plans to begin commercial operations in 2030.

An official from DL Energy stated, "By securing the fixed-price contract, we can significantly reduce the risk of electricity price volatility, which was a core variable in business feasibility." The official added, "While proceeding with EPC bidding and financial procurement without a hitch, we will also cooperate with Korea Mid-Power to contribute to building the offshore wind power industry ecosystem in the Yeosu region."

DL Energy has also recently further strengthened its financial soundness. Korea Investors Service and NICE Investors Service simultaneously upgraded the company's corporate bond credit rating from 'A' to 'A+ (Stable)'.

The two major credit rating agencies cited Pocheon Power's stable revenue generation, expanding performance in power plant projects in the US and Australia, and improvements in financial structure driven by investment recoupment as the primary reasons for the rating upgrade. DL Energy has been expanding its investment recovery through asset sales and dividend inflows from Poseung Green Power, EMA Power, and the Cochrane power plant in Chile.

Based on these achievements, the company's consolidated net debt recorded minus (-) 202.1 billion won in the first quarter of this year, shifting into a net cash position. Liquid assets held by overseas subsidiaries also exceeded 400 billion won, providing sufficient liquidity for future new investments and project implementations, the company explained.

DL Energy is an intermediate holding company responsible for energy project development, financial procurement, and operations within DL Group. Based on DL E&C's plant and nuclear power EPC execution capabilities and Daelim's energy logistics and trading functions, the group is establishing an energy value chain spanning from project development to construction, operations, and distribution. Leveraging this framework, the company's strategy is to expand its business scope into renewable energy such as solar and wind power, as well as next-generation power generation fields like fuel cells and small modular reactors (SMRs).

An official from DL Energy remarked, "Winning this bid for the Yeosu Geumodo offshore wind power project is a result that once again proves our outstanding project capabilities and potential." The official added, "Supported by a solid financial structure to back it up, we are now able to promote the project more stably and swiftly. We will contribute to building the group's energy value chain while continuously discovering new energy investment opportunities to further strengthen our foundation for growth as a global energy enterprise."

                                                                                                            Jeon Won-jun