The Australian government will temporarily reduce fees and levies for offshore wind developers as part of efforts to encourage investment, support regional development, and create jobs, officials said on Monday.
Under the measures, annual levies on feasibility and research licences will be waived for two years, while transmission and infrastructure levies will be halved. Application fees will also be significantly reduced.
The move is aimed at lowering early-stage financial barriers for developers, particularly during feasibility and demonstration phases, to prevent market exits at what the government described as a “critical stage” of project development.
“These changes will help reduce upfront costs and support long-term investment in Australia’s offshore wind sector, which is expected to play a key role in ensuring energy security and regional economic growth,” the government said in a statement.
In addition to fee reductions, the government will ease administrative requirements by lowering capital reserve obligations. Under the revised rules, licence holders will no longer need to hold 150% of estimated project costs in reserve, a shift intended to unlock capital and improve cash flow for developers.
A full review of the offshore wind cost recovery framework is currently underway, and the government said regulations to implement the new relief measures are expected to be introduced later this year.
The adjustments come as Australia seeks to scale up its renewable energy capacity to meet climate targets and transition away from fossil fuels.
