The Victorian government has postponed the auction for offshore wind projects in Gippsland until at least the end of the year, delaying the next step in Australia’s first declared offshore wind zone.
The process was due to launch this month and will allow developers to bid for government support for projects off Victoria’s south-east coast.
Energy minister Lily D’Ambrosio said the state was working with the federal government on timing, adding: “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.”
Victoria Energy Policy Centre director Bruce Mountain said the delay was not “entirely unexpected”, noting the auction required “very large amounts of public subsidy” to be credible.
He said he remained confident targets could still be met, 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 setback follows the federal government’s rejection of plans for a turbine assembly terminal at the Port of Hastings, citing environmental concerns. A redesigned project will be subject to an environmental effects statement.
Southerly Ten chief executive Charles Rattray, whose company is developing the Star of the South project, said: “While this is disappointing, it does not change the reality that offshore wind is essential to Australia’s energy future.”
In a statement the company added that Gippsland “has powered Victoria for over a century – and it can continue to do so with offshore wind”, citing its consistent winds, port and grid infrastructure and skilled workforce.
Southerly Ten said a successful first project “won’t just deliver much-needed new capacity, cut emissions and create regional jobs – it will pave the way for a national offshore wind industry.”
Gippsland has the potential to deliver 25GW of capacity, with feasibility licences already awarded to 11 projects. Victoria is targeting at least 2GW of generation from offshore wind by 2032.