Australia’s First Offshore Wind Farms Given Green Light for 6 Projects by Victoria
New wind projects are part of the Australian government’s shift away from coal-powered electricity supply.
Feasibility licenses have been granted for multiple wind farm projects to begin off Victoria’s coast as part of the state’s transition away from coal-fired power stations.
So far, licenses have been approved for six projects: Star of the South, High Sea Wind, Gippsland Skies, Blue Mackerel North, Kut-Wut Brataualung, and Orsted’s Gippsland.
This new zone is expected to generate 2.9 gigawatts (GW) of power, enough for 2,000 Victorian households, though lower than the initial estimate of 14.6GW.
The government aims to increase this to 4GW by 2025 and 9GW by 2040.
Energy Minister Chris Bowen mentioned that six more licenses will be granted after consulting with traditional owners. If all licenses are approved, these projects could eventually produce 25GW—exceeding the state’s needs.
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The next step for these developers is to secure a commercial license for the construction and operation of the farm—a process that can take up to seven years.
Minister Bowen noted that it will be some time before the announced projects receive final approval.
The announcement follows the designation of an area in the Bass Strait off Gippsland as the initial zone for wind farming back in December 2022.
Offshore wind farms use undersea cables to capture and transport energy from multiple sea-based turbines to a grid. These turbines are larger than onshore ones to harness the stronger offshore winds.
Mr. Bowen emphasized that the projects would bring both energy and job opportunities, with the potential for 15,000 new construction jobs and half as many ongoing positions.
He highlighted the importance of offshore wind for major Australian energy users like Alcoa, Bluescope, and Tomago.
Joint Victoria-South Australia Tender
A Victoria-South Australia tender aims to add 600MW of capacity by 2030 under the Capacity Investment scheme.
Renewable projects under this scheme must be located in South Australia or Victoria, have a minimum storage duration of two hours, a minimum capacity of 30MW, and provide clean, dispatchable capacity to the grid by the end of 2027.
Mr. Bowen highlighted the strong interest and confidence shown by industry in the scheme through an overwhelming number of bidders.
Selected projects will receive government investment guarantees.
“If a project is successful, they will receive a Capacity Investment Scheme Agreement (CISA) lasting up to 15 years, providing the needed investment certainty for their dispatchable renewable energy project,” Mr. Bowen stated in a joint media release in October 2023.
Environmental Impact of Wind Zones
In March, an offshore wind zone off Victoria’s coast was approved at one-fifth of its original size due to concerns raised by community groups and environmental activists about its impact on marine life.
The 1,030 square kilometers wind zone will be situated 20 kilometers off the Western Victoria coast at Warrnambool and Port Fairy.
The initial plans for the zone covered an area stretching from Warrnambool in Victoria to Port MacDonnell in South Australia, encompassing the Bonney Upwelling, Deen Maar Island, and shipping routes, totaling over 5,000 square kilometers.
The South Australian government, however, had reservations about the power generated by the grid being used only in Victoria, as well as concerns about its impact on the rock lobster industry, resulting in the reduction of the area.
