Offshore wind is a key pillar in Victoria’s renewable energy future.
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Offshore wind – a key pillar in our renewable energy future
Victoria is undergoing a once-in-a-generation energy transition. As Victoria's ageing and increasingly unreliable coal-fired power stations retire, more and more renewables – paired with battery storage – will provide the State's electricity as part of our renewable energy transition. From our sun-drenched plains to our windy coastlines – Victoria is blessed with rich renewable sources that will help us achieve our renewable energy target of 95% by 2035.
Offshore wind energy is a key pillar in this renewable energy transition – and reaching our renewable energy targets. Victoria's offshore wind energy generation targets, legislated in March 2024, are:
at least 2 gigawatts (GW) of offshore generation capacity by 2032 – enough to power 1.5 million homes
4 GW by 2035
9 GW by 2040.
Offshore wind will:
create new jobs and career pathways
boost Victoria's manufacturing and supply chain development
increase regional investment
support for our climate action goal of net-zero emissions by 2045.
What is offshore wind energy?
In Australia, offshore wind farms will be located in Commonwealth waters. The wind farms capture the energy of the wind and convert it into electricity. Winds are usually stronger and more constant over water than over land, meaning we can generate more electricity from these farms.
How an offshore wind farm works
Offshore turbines capture the wind's energy and generate electricity. These turbines are larger and more powerful than onshore wind turbines. The blades can be over 100 metres long and are made to endure high winds.
Foundations secure turbines to the ocean floor. Foundations can be fixed-bottom (anchored to the seabed) or floating (moored to the seabed in deeper waters).
Cables transport the electricity from the turbines to the substations.
Offshore substations collect the power generated by the turbines and prepare it for transmission to shore.
Onshore substations connect the electricity supplied by the offshore wind farm to the onshore grid.
Control systems manage the operation of the turbines, monitor the performance of the substructures and foundations, and ensure the safety of the entire system. These systems use advanced sensors and communication technologies to collect and analyse data in real time.
Offshore wind around the world
Offshore wind energy technology has been used internationally for decades and costs have come down over time. More and more countries are turning to offshore wind as part of their renewable energy transition. Many countries around the world have established offshore wind farms, and Victoria is building on their experiences:
Denmark has been a leader in offshore wind energy since the 1990s, when it built the world's first offshore wind farm in Vindeby.
The United Kingdom has been a pioneer in offshore wind energy since the early 2000s and is currently the world leader in offshore wind capacity. The country has several large offshore wind farms, including the 1,386 MW Hornsea 2, which is currently the world’s largest offshore wind farm.
China has been rapidly expanding its offshore wind energy capacity in recent years, and currently has the third-largest installed capacity of any country in the world.
There is strong global support and coordination around offshore wind – including the Global Offshore Wind Alliance (GOWA), which was founded to create a global driving force for the uptake of offshore wind. Victoria became a sub-national member of GOWA in August 2023.
Our new interactive images will help you visualise what wind turbines off the coast of Gippsland might look like.
Southern Ocean
The Southern Ocean declared area is around 1,030km2, 15-20km off the coast of Warrnambool and Port Fairy, in waters governed by the Australian Government.
Before a wind farm can be built, there is a lot of work and planning that must happen.
First, an offshore wind farm can only be built in areas approved by the Australian Government. These areas are called declared areas. In Victoria, areas of the Bass Strait off Gippsland, and of the Southern Ocean off western Victoria have been declared for offshore wind.
After an area is declared suitable for offshore wind, developers can apply for a feasibility licence. This gives them permission to investigate their proposed project in more detail.
A transmission infrastructure licence is the next licence a developer will need. This allows developers to plan, design and build transmission cables that connect the offshore wind farm into the onshore grid.
A commercial licence is the final licence a developer will need. This gives them permission to build the farm – it is only given to developers who have completed all the steps and approvals needed for their feasibility licence.
Even before an area is officially declared suitable for offshore wind, the Australian Government conducts preliminary assessments of an area's wind speeds, ocean depths and access to an existing onshore electricity grid. It also consults with Australian and Victorian Government agencies, industry, stakeholders and the community. Developers, too, will often start earlier investigations in possible offshore wind areas. This is called pre-feasibility activity and can include:
consulting with the community to understand their concerns or opportunities
doing assessments on the environment, such as understanding more about migratory birds and marine life in these areas.
Communities in the Gippsland and Southern Ocean regions may have already seen some of this developer activity during the earlier proposed offshore wind area consultation processes.
Feasibility licence
Issued by the Australian Government, the feasibility licence period is up to 7 years.
The licence allows developers to undertake detailed environmental assessments, geotechnical surveys, obtain approvals and undertake further consultation on their proposed projects.
Developers must also develop a management plan – as part of this, they need to:
consult with First Nations Groups, and the local community and demonstrate how they will share the area with other users
have a plan for gathering and responding to ongoing feedback from stakeholders throughout the life of the project.
The management plan must be approved by the Australian Offshore Infrastructure Regulator before an application for a commercial licence can be granted.
Gippsland declared offshore wind area and feasibility licence locations
There are 3 separate parts of the ocean off the Gippsland coast that are marked as Australian Government declared areas for offshore wind.
Within these 3 parts there are 12 different-sized segments where feasibility licences have been awarded by the Australian Government to potential offshore wind projects.
In Part 1, which starts at 10km from the coast, from near Port Albert to the Gippsland Lakes Coast Park, there are 6 feasibility licence project areas.
These include 3 feasibility licences starting at 10km from the coast:
Blue Mackerel 1 gigawatt (GW) capacity
Star of the South 2.2GW
Gippsland Dawn 2.1GW
Directly behind these feasibility licence areas, starting from about 25km from the coastline, are:
Great Eastern Offshore Wind 2.5GW
Aurora Green 3GW
Navigator North 1.5GW
In Part 2, starting at about 60km from the shoreline, and behind Part 1, are another four feasibility licence holders that border each other:
Gippsland 1 2.8GW
Gippsland 2 2GW
Kent Offshore Wind 2GW
High Sea Wind 1.3GW
In Part 3, which starts at about 25km from the tip of Wilsons Promontory, are 2 more feasibility licence areas:
Gippsland Skies 2.5GW, which is located about 35km from the coast
Kut-Wut Brataualung 2.2GW, which starts at about 45km from the coast
The benefits of offshore wind energy
Developing our offshore wind energy sector will not only deliver more renewable energy – it will also drive regional investment and create jobs.
Reaching our target of 9GW by 2040 will bring opportunities for Victoria’s workforce, mobilising thousands of workers, during the lifetime of the industry, particularly in the regions closest to offshore wind sites.
At its peak in the mid-2030s, the sector is estimated to require up to 2,300 – 4,000 jobs across Australia with the vast majority in Victoria. The peak in demand will be characterised by a significant number of roles involved in developing and constructing offshore wind farms.
From 2035 onwards, as the industry matures and reaches its operational phase, an estimated 1,500 – 1,750 ongoing jobs will be needed over 30-years, which is the lifetime of these assets.
Port of Hastings has been identified to develop the Victorian Renewable Energy Terminal as the primary assembly port in Victoria. Other commercial ports in Victoria have the potential to support and facilitate the establishment and operation of the offshore wind industry.
Victoria is developing offshore wind
Offshore Wind Energy Victoria (OWEV) has been established as the gateway for industry, stakeholder and community engagement as we plan for the future and grow this exciting industry. As part of the Department of Energy, Environment and Climate Action, OWEV is responsible for coordinating the work streams to support the industry’s development.
Our Offshore Wind Energy Implementation Statements support and guide industry, stakeholders and the Victorian community on the development of the offshore wind sector.
Released in December 2023, Offshore Wind Energy Implementation Statement 3 sets out the Victorian Government’s next steps in developing an offshore wind sector. It includes updates on our procurement approach, legislative and regulatory reform, supply chain and local supply, and transmission and ports.
Implementation Statement 3 also outlines our approach to protecting the environment and our continued commitment to working with Traditional Owners and support meaningful steps to self-determination.
We understand that Victorians have a keen interest in how offshore wind projects and supporting transmission infrastructure will be developed in our state, and we will undertake planned, respectful and ongoing engagement as we establish this new renewable energy resource.
Public consultations are an important factor in the development of offshore wind energy in Victoria.
All active Victorian Government consultations are hosted on the Victorian Government’s Engage Vic website.
Visit Planning for consultations on the Environment Effects Statement (EES) processes.
For information about the Australian Government’s Environment Protection and Biodiversity Conservation consultations, visit the EPBC Act Public Portal.
The Australian Government is currently consulting on the Technical Guidelines on the Archaeological Assessment of First Nations Underwater Cultural Heritage in Commonwealth Waters. To learn more and have your say visit Consult DCCEEW.Consultation closes 29 November 2024.
Engagement events
Gippsland Offshore Wind Days
In November, the Gippsland feasibility licence holders, Offshore Wind Energy Victoria and VicGrid worked together to deliver 4 joint community engagement events in Seaspray, Foster, Traralgon and Yarram.
The regional events provided an opportunity for locals to meet and engage with the offshore wind developers behind Gippsland’s proposed projects.
The organisers encouraged local communities to attend to learn more about offshore wind, upcoming project plans, socio-economic benefits and share feedback.
Wind turbine visualisations
Our new interactive images will help you visualise what wind turbines off the coast of Gippsland might look like.
