Victoria Releases Updated Strategy to Boost Offshore Wind Industry

Business development

December 14, 2023, by Adnan Memija

Victorian Energy and Resources Minister Lily D’Ambrosio has issued the Offshore Wind Implementation Statement 3 which outlines the parameters for the proposed support package for the first tranche of offshore wind projects in Victoria, Australia.

The first tranche of offshore wind projects in Victoria will be run through a competitive auction process to be rolled out in 2025 with contracts awarded in 2026.

The Statement outlines workforce opportunities across all stages of offshore wind farm development, meaning jobs for Victorians in trade professions, engineering, administrative, and other roles.

To maximise opportunities for local industry development and local jobs, the Victorian Government will also establish the Renewable Jobs Taskforce, which will coordinate industry engagement and participation across offshore wind projects.

Victoria also has the potential to support and facilitate the establishment of the offshore wind industry at several ports in addition to the Victorian Renewable Energy Terminal at the Port of Hastings.

“Local ports will play a critical role in supporting the offshore wind sector, with several ports across Victoria offering ideal locations to set up operational bases for offshore wind projects,” said Melissa Horne, Minister for Ports and Freight.

In addition, Implementation Statement 3 provides an update on VicGrid’s approach to the coordination of transmission using its Options Assessment Method developed in consultation with landholders, communities, and stakeholders, according to the press release from the minister’s office.

Preferred transmission project options will be announced next year.

According to the press release, a fit-for-purpose regulatory framework is also being developed to support the industry to ensure the environment is protected as the industry grows.

Existing frameworks to protect the marine and coastal environments will apply, and information products and tools are being developed to support planning for offshore wind energy specifically.

The Statement also outlines a competitive procurement process to maximise local content while adapting requirements to reflect the early stages of the sector’s development in Australia.

“Recognising the impact on our First Peoples, the Statement outlines the Government’s continued commitment to meaningful steps toward self-determination and supporting the Gunaikurnai Land and Waters Aboriginal Corporation’s aspirations for mutually beneficial agreements with offshore wind developers in the Gippsland area,” according to the press release.

The Victorian Offshore Wind Energy Implementation Statement 2 was released in March which sets out how this Australian State will leverage industry-led investment in offshore wind for the first tranche of projects that will deliver at least 2 GW by 2032.

The state of Victoria, home to the country’s first offshore wind development area, is targeting at least 2 GW of offshore generation capacity by 2032, 4 GW by 2035 and 9 GW by 2040.