The Australian Government is cutting fees and red tape for offshore wind development firms in an effort to bolster investment in the nation’s emerging offshore wind sector.
The government will seek to waive annual levies applied to feasibility and research and demonstration licences; halve annual levies applied to transmission and infrastructure licences; reduce application fees for research and demonstration licences from $300,000 to $20,000; and reduce application fees for transmission and infrastructure licences from $300,000 to $150,000.
Related article: Prelim feasibility licences for Bunbury Offshore Wind Zone
It is also easing administrative workloads with simpler financial and reporting requirements—matching reporting requirements to the nature and scale of activities being undertaken. Lower capital requirements under the new streamlined approach will also remove significant investment hurdles for offshore wind developers.
The government will still demand best practice community engagement schemes for potential projects—striking the right balance between development and social licence.
This new industry support builds on draft guidelines released last month to encourage offshore wind research and demonstration projects.
Minister for Climate Change and Energy Chris Bowen said, “The Albanese Government is cutting fees and red tape while continuing to demand best practice community engagement for potential offshore wind projects. These cuts to fees, capital requirements and red tape make Australia a better prospect for investment and regional job creation.
“We want to make it easier for developers to build an Australian offshore wind industry, create thousands of great long-term jobs and generate cleaner, cheaper power for millions of homes.
“We recognise that the industry currently faces economic pressures and we are acting accordingly with temporary relief.”
Offshore wind projects currently in development off the coast of Australia could generate a total of 24.21GW—enough to power nearly double Australia’s total housing stock.
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Minister Bowen has also made preliminary decisions to offer feasibility licences for projects off the coast of Bunbury, Western Australia that could add another 4GW and employ over 2,500 workers during construction and another 1,000 ongoing jobs.
The temporary financial relief is available across the Government’s six declared offshore wind zones.
