Wind farms to supply more Australian green energy after declaration of third offshore zone

Australia’s renewables journey continues to blow in the right direction with the federal government designating the country’s third offshore wind development zone.

The area is located off the coast of Victoria, in the southern part of the continent, and could host up to 2.9 GW of offshore wind capacity - enough to supply about two million households. The declared zone was, however, significantly scaled back compared to original plans following an extensive consultation process.

Scaled-back project

Australia's Minister for Climate Change and Energy, Chris Bowen, declared the area in the Southern Ocean for offshore renewable energy, including offshore wind, last week. It is located between 15 and 20 km off the Victorian coast and covers 1,030 km2 of seabed areas, instead of the previously announced 5,100 km2.

Feasibility license applications remain open until July 2 with the Offshore Infrastructure Registrar leading assessment of all applications against criteria set out in the Offshore Electricity Infrastructure Regulations 2022, ahead of making recommendations to the minister. Potential developers will undertake detailed environmental assessments and further consultation, including whether their project would impact fishing, shipping and tourism.

Pursuing net-zero goals

The country’s two previously declared offshore wind zones are in the Bass Strait, off Victoria’s Gippsland coast (6 GW potential), and in the Pacific Ocean, off the Hunter region, New South Wales (5 GW). Australia plans to designate additional zones to support the country’s 2050 net-zero emissions target; the government acknowledges the offshore wind industry, well established internationally, as an emerging industry in Australia. 

The Southern Ocean region is one of six priority areas earmarked for offshore wind development in Australian Commonwealth waters and deemed well suited based on several factors. These include strong, consistent winds, proximity to areas of high electricity demand - including an aluminium smelter reportedly drawing up to 10% of Victoria’s electricity - proximity to existing grid connections, and aging coal-fired power stations in the region planned for shut down in future years.

As well as the prospect of cleaner, cheaper energy, the move is expected to bring new employment opportunities during construction and ongoing operation roles for engineers, labourers, technicians, operators, riggers, divers, and administrators.

Extensive consultation

Declaration of the Southern Ocean area followed consultation with local communities, Commonwealth, state and local governments, First Nations people and existing industries including shipping, defence, fishing, and other marine users.

Minister Bowen listened to feedback before declaring a zone reportedly one fifth the size of that originally proposed, but said it had the potential to create thousands of “new, high-value jobs” and help secure cleaner, cheaper more reliable energy for Victoria. “Australia has abundant renewable energy, the cheapest form of energy, and the government is committed to helping Australians benefit from these natural resources, including offshore wind,” added Bowen.