The Victorian Government has postponed its Gippsland offshore wind tender, delivering yet another blow to Australia’s fledgling offshore wind industry.
Related article: BlueFloat cancels Gippsland Dawn offshore wind project
Victorian Minister for Energy and Resources Lily D’Ambrosio announced the decision to delay the auction process, citing issues ranging from a lack of funding agreement from the federal government, delays to plans for the Port of Hastings renewables terminal, and global uncertainty in the offshore wind sector.
D’Ambrosio said, “As the global market for offshore wind investment changes, we’re making sure the auction is competitive and attractive and will release a new timeline for this process later this year.”
“For some context for the delay, we lost about 12 months from our original timelines because of delays that are outside our control as a state, including in issuing feasibility licenses and finalising regulations, and as a result of the original rejection of the Port of Hastings EPBC referral.
“In addition to that, we are very conscious of changes in the international market and supply chains that need to be factored into our planning.”
The Gippsland offshore wind auction is designed so developers can bid for government underwriting for their proposed projects, with winning tenders guaranteed a fixed price for electricity generated.
News of the tender delay signals yet another setback for the industry, with a number of developers walking away from proposed offshore wind projects.
Related article: Equinor exits 2GW Novocastrian Offshore Wind project
Both BlueFloat and Equinor have walked away from major offshore wind projects in Australian waters due to global investment headwinds.
