Australia Launches First Offshore Wind Auction in Victoria State
(Bloomberg) -- Australia’s Victoria state has opened the nation’s first offshore wind auction, although there’s skepticism it will meet its lofty targets for the renewable technology.
The request for proposal process started on Wednesday for 2 gigawatts of offshore wind, able to provide enough energy to power around 1.5 million homes, the state government said in a statement. The auction will close in August next year, with contracts to be awarded later in 2027.
“Victoria has some of the best offshore wind resources in the world,” Victorian Energy Minister Jaclyn Symes said. “This auction is a giant leap toward getting Australia’s first offshore wind projects built — attracting billions in investment, creating thousands of jobs and delivering the reliable power we need as coal retires.”
Australia has been a global leader in the uptake of solar and batteries as the nation seeks to replace an aging fleet of coal-fired power plants, but households have driven much of the transition. BloombergNEF forecasts no offshore wind projects will come online by 2035, meaning Victoria would miss its legislated targets for 4 gigawatts by that year.
Twelve offshore wind projects in Victoria received feasibility licenses in July 2024. Three — by companies including RWE AG and AGL Energy Ltd. — have since surrendered theirs.
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