Arabic version: فيكتوريا تفتح أول مزاد لطاقة الرياح البحرية
According to ABC News, the Victorian government has opened a Request for Proposal process for the state’s first two gigawatts of offshore wind. Energy Minister Jaclyn Symes said the auction was intended to help build Australia’s first offshore wind projects, attract investment, create jobs and provide reliable power as coal generation retires. The capacity is projected to power about 1.5 million homes each year.
Offshore wind proponents will bid for government support, with assessments to consider their ability to deliver power and value for money. Successful bidders are expected to receive contracts through the proposed Energy Services Entry Mechanism, or ESEM. The mechanism is designed to offer long-term certainty that projects can sell electricity later in their operating lives, helping reassure investors. However, the ESEM has not yet been established, and Queensland remains opposed despite other Australian energy ministers agreeing in principle last year to introduce it.
Gippsland was declared Australia’s first offshore wind zone by the Commonwealth in 2022, selected for strong winds, relatively shallow waters and proximity to Latrobe Valley grid infrastructure. Nine proponents hold feasibility licences for projects off the Gippsland coast, though not all are expected to enter the first auction. The process closes in August 2027, with contracts due to be awarded in 2028.
The auction comes as coal-fired generation is scheduled to leave the grid. Yallourn in Gippsland is set to close in July 2028, followed by New South Wales’ Eraring station in April 2029. Victoria aims to produce at least 2GW of offshore wind by 2032, rising to 4GW by 2035 and 9GW in 2040. The Victorian auditor-general warned in December that delays in establishing the industry made the 2032 target unlikely.
Industry and environmental representatives welcomed the opening. Southerly Ten chief development officer Erin Coldham said the auction could allow the government to select projects offering the best value and provide revenue comfort for construction. Environment Victoria senior climate and energy adviser Kat Lucas-Healey said offshore wind could add diversity to renewable supply. Grattan Institute fellow Tony Wood said significant uncertainty remained, citing offshore construction costs and the upcoming November election. Opposition energy spokesperson David Davis said the Coalition supported offshore wind in principle and would maintain the contract process with oversight if elected.
