Daewoo Shipbuilding & Marine Engineering Co. said Wednesday that it has signed a deal with power plant builder Kepco Engineering & Construction Co. to develop offshore substations.

The two South Korean companies plan to make inroads into the overseas offshore substation market, Daewoo Shipbuilding said.

An offshore substation refers to equipment that transfers electricity generated at offshore wind farms to land.

The government is pushing ahead with its plan to be one of the world's five offshore wind farm powerhouses by 2030. (Yonhap)