German renewables developer RWE has announced its decision to cease development of its proposed Kent Offshore Wind Project off the Gippsland coast in Victoria.
It’s the latest in a spate of canned projects and exits within Australia’s nascent offshore wind industry, following BlueFloat’s cancellation of its Gippsland Dawn offshore wind project and Equinor’s decision to exit the Novocastrian Offshore Wind Project.
Related article: Trouble in the water: Victoria delays first offshore wind tender
The Victorian Government also recently announced it had postponed its Gippsland offshore wind tender, delivering yet another blow to the fledgling industry.
To be located 67km off the coast of Gippsland, the proposed Kent Offshore Wind Project was to comprise up to 133 turbines that would deliver 2GW of renewable energy—enough to power up to 1.6 million homes.
After close to a year of feasibility studies, RWE said it had made the considered decision to cease development of project.
“This decision follows a review of the project’s competitiveness in current market conditions, as well as ongoing uncertainties around supply chain costs and the future design of the auction framework,” RWE said in a statement.
“We want to be clear that this decision relates solely to the Kent offshore wind project. We are continuing to develop, build and operate a diverse pipeline of renewable energy projects across Australia, including large-scale battery storage and onshore wind.
Related article: BlueFloat cancels Gippsland Dawn offshore wind project
“Our local team based in Melbourne and across the country, is focused on constructing Australia’s first 8-hour battery and forging ahead with the development of three gigawatt-scale onshore wind farms, including the Campbells Bridge project in western Victoria.
“These projects reflect our long-term view of Australia as a key growth market for renewables.”
