Victoria’s renewables push suffers major blow as developers bail

Victoria’s timeline for offshore wind has been dealt a major blow after the government pushed back an auction process until next year.

Energy Minister Lily D’Ambrosio on Tuesday told the APAC Wind Energy Summit in Melbourne that the government would delay the auctions, due to start this month, with a new timeline to be announced by the end of 2025.

The auctions were due to start at the end of the month but have been delayed until next year.Credit: Getty Images

The auctions involve developers bidding for government support packages to help get their offshore wind projects over the line and are crucial to getting the industry up and running.

Victoria has set a goal of having two gigawatts of offshore wind by 2032.

It comes after multiple potential developers of offshore wind farms pulled out of the process amid financial concerns.

The Allan government is also seeking federal funding for the support packages, which would include subsidising offshore wind generators to back up their investment decisions.

Lily D’Ambrosio said she remained optimistic about offshore wind licences despite the delay.Credit: Simon Schluter

D’Ambrosio said she had been told by the industry that they needed more time because of uncertainty over funding.

“While our aspiration was to have those preconditions in place by the end of September, and great effort has gone into attempting to achieve this, it has not been possible,” she said.

Loading

D’Ambrosio said Victoria had lost 12 months from its original timeline due to issues with feasibility licences, finalising regulations and the initial rejection of an offshore wind construction hub at the Port of Hastings.

“In addition to that, we are very conscious of changes in the international market and supply chains that need to be factored into our planning,” she said.

“To be clear, what I am announcing today is not an end to Victoria or Australia’s offshore wind aspirations … we are absolutely committed, and I continue to be optimistic about the possibilities of a national partnership.”

D’Ambrosio said it was “tremendously challenging” for a state government to set up an offshore wind industry alone and called on the Albanese government to provide more support.

“The Commonwealth has a critical and large role to play, and it needs to be more than has been delivered to date,” she said.

“I am optimistic by nature. You don’t achieve something as complex as the energy transition by being a pessimist ... so I remain absolutely confident that we will achieve that necessary partnership with the federal government.

Loading

“Offshore wind is critical to the nation’s energy security and pushing down energy bills for Victorian families, and we continue to engage with the Commonwealth on renewable energy projects, including a timeline and support package to deliver Australia’s first offshore wind auction.”

D’Ambrosio said a port to construct turbines was essential and the government remained focused on getting the Port of Hastings project approved.

She said this would give investors certainty before the auction process began.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.

Most Viewed in Politics

Loading