In light of climate change and greenhouse gas reduction, countries around the world are doing their part to develop various types of eco-friendly energy. In this context, the Shihwa Tidal Power Plant is an advanced energy generation infrastructure which uses the resources of the sea, a project that pioneers and practices low-carbon, green growth engineering. Not only as an advanced energy generation infrastructure but also it is an eco-friendly infrastructure that resurrected ‘the dead lake’, which had suffered extreme water pollution due to cutoff in seawater circulation after the completion of the tide embankment in 1994. By circulating the water of the lake, new mud flats have appeared in the upstream area, an area once submerged due to the embankment. These new mud flats are providing new shelters for various organisms, thus transforming the lake into an eco-friendly, life-giving one. Most tidal power plants are difficult to construction due to geological features. The Sihwa tidal power plant was developed harmoniously by utilizing the unique geological features and tidal power plant principles on the West coast of the Korean peninsula. Shihwa Tidal Power Plant is a special and differentiated development example of renewable energy production and environmental improvement along with the significant water quality improvement effect of Shihwa Lake due to increased seawater exchange rates. This article therefore presents the review of Shihwa Lake’s environmental issues and eco-friendly energy production process with the aim to identify the good practices, the challenges as well as the lessons learnt from their experience. This development will be another case of a country seeking to develop new marine energy. This is also a good practice of improving the environment of freshwater lakes in coastal areas.