Gippsland's planned transformation into Australia's offshore wind energy powerhouse has hit a bump in the road, with the Victorian government delaying a crucial auction process until at least the end of the year.
The auction, originally scheduled for this month, is the next step for developers seeking government support to build offshore wind farms in waters off the Gippsland coast.
Energy Minister Lily D'Ambrosio cited changing global market conditions, stating the government wants to ensure the auction remains "competitive and attractive." However, energy economist Professor Bruce Mountain said the delay was unsurprising given the extensive Commonwealth funding required.
"The Victorian government could never realistically run an auction when it required extensive Commonwealth funding," Professor Mountain told the ABC, noting that offshore wind will require "very large amounts of public subsidy."
Renewable energy supporters are concerned about the delay, with Voices of the Valley President Wendy Farmer warning that communities "cannot wait any longer" for offshore wind rollout to begin.
"Our communities need the offshore wind industry to create thousands of good jobs, hope for the future, and ensure our future energy security," Farmer said. "If offshore wind is not constructed on time, we will not be able to replace their energy supply."
The setback adds to previous challenges, including federal rejection of Victorian plans for a wind turbine assembly terminal at Port of Hastings due to environmental concerns. Last week, Navigator North developers announced they were putting their project on hold.
The delay comes just a week after the Gippsland New Energy Conference in Traralgon brought together hundreds of people from government, private industry and community to discuss Gippsland's role in energy transition.
Yet despite setbacks, Star of the South’s Charles Rattray remains committed to his company’s project, emphasising that offshore wind is "essential to Australia's energy future" with 90% of coal-fired capacity forecast to retire by 2035. Star of the South, a project planned off the coast of Port Albert, is forecast to create thousands of jobs, power hundreds of thousands of homes and invigorate local economies.
Renewable energy campaigner Anna Langford also urged federal action, noting that Victoria's rollout success will indicate the national offshore wind industry's viability.
“Bringing offshore wind online, on time, will create thousands of jobs, attract international investment, secure our future energy supply, and make a strong contribution to our emissions reduction targets. We urge the Albanese government to ensure there are no further delays to the national rollout of offshore wind by partnering with the Victorian government to hold the first offshore wind auction by the end of 2025,” she said.
“Kicking the can down the road means exposing communities to intensified climate impacts such as bushfires, floods, and drought, which wreak social, ecological and financial havoc,” continued Ms Langford.
The federal government has awarded feasibility licenses to 11 Gippsland projects, with Victoria aiming for 2GW of offshore wind capacity by 2032 – enough to power 1.5 million homes. Cara Schultz
