The Australian state of Victoria will open an offshore wind tender in August 2026 for an initial 2 GW of capacity, Victoria’s Minister for Energy and Resources announced on 27 January.
In December 2025, Australia’s Energy Ministers provided in-principle support for the Electricity Services Entry Mechanism (ESEM), providing a pathway for new renewable energy projects, including offshore wind, that support Victoria meeting its renewable energy targets. Work continues with the industry and the Commonwealth to finalise the design of the ESEM and Victoria’s auction process to ensure a competitive and successful auction, Victoria State Government said.
“We’re working closely with developers on the progress of this exciting auction to ensure strong competition to secure the best projects and best value for Victorians “, said Lily D’Ambrosio , Victoria’s Minister for Energy and Resources. “We’ve always said Victoria will host the country’s first offshore wind industry and that’s why Victoria pushed for the ESEM to accommodate technologies including offshore wind.”
Victoria planned to open its first offshore wind tender in September last year, but the process was postponed.
Minister D’Ambrosio said the decision to delay the auction was due to several reasons, including setbacks in the approval of feasibility licences, the rejection of the initial referral for the Port of Hastings, and global uncertainty.
Southerly Ten, the developer of the Star of the South offshore wind farm, welcomed the government’s announcement of the new tender date and said offshore wind was critical to Australia’s energy security and pathway to net zero, as 90 per cent of coal-fired capacity is forecast to retire by 2035.
“Star of the South alone could deliver 10 percent of the emissions reduction needed to reach Australia’s 2035 climate target, while creating local jobs and intergenerational economic benefits. We are ready for the next steps, having lodged Star of the South’s environmental approval applications with government and purchasing the land required for the project’s shore crossing”, the developer said.
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