The Victorian government has postponed the auction for offshore wind projects in Gippsland until at least the end of 2025, delaying a key phase in Australia’s first officially designated offshore wind zone.
The auction, initially scheduled for this month, would have allowed developers to bid for government support to develop projects off Victoria’s south-east coast.
Energy Minister Lily D’Ambrosio said the state was working closely with the federal government on timing. “As the global market for offshore wind investment changes, we’re making sure the auction is competitive and attractive and will release a new timeline for this process later this year,” she said.
Bruce Mountain, director of the Victoria Energy Policy Centre, described the delay as “not entirely unexpected,” pointing out that the auction would require “very large amounts of public subsidy” to be viable.
Mountain expressed confidence that targets remain achievable, adding, “If very large amounts of public money are put on the table, it will be possible to build offshore wind turbines within the six-year period.”
The postponement follows the federal government’s rejection of plans for a turbine assembly terminal at the Port of Hastings, citing environmental concerns. A redesigned proposal will undergo an environmental effects statement process.
Charles Rattray, chief executive of Southerly Ten, which is developing the Star of the South offshore wind project, said: “While this is disappointing, it does not change the reality that offshore wind is essential to Australia’s energy future.”
He added that with around 90% of coal-fired power capacity set to retire by 2035, offshore wind will play a critical role in ensuring energy security.
Gippsland’s offshore wind zone has the potential to deliver up to 25 gigawatts (GW) of capacity, with feasibility licences already granted for 11 projects. Victoria has set a target of generating at least 2 GW of offshore wind power by 2032.
