Victoria is building a thriving offshore wind sector, leading the way for Australia’s first offshore wind energy projects.
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Why offshore wind?
Victoria’s coastline offers some of the world’s strongest and most consistent offshore wind resources, combined with relatively shallow waters—ideal conditions for offshore wind energy. This makes Victoria ideal for offshore wind energy, which is an important part of our renewable energy transition.
As Victoria's ageing and increasingly unreliable coal-fired power stations retire, renewables and storage will provide the state's electricity.
Offshore wind energy is an exciting addition to our renewable energy mix and Victoria’s electricity future. To help achieve our renewable energy targets, and give industry the certainty and security needed to help us build our renewable energy future, the Victorian Government has legislated offshore wind energy generation targets of:
at least 2 gigawatts (GW) by 2032 – enough to power 1.5 million homes each year
4 GW by 2035
9 GW by 2040.
Our new offshore wind industry will:
create new jobs and career pathways
boost Victoria's manufacturing and supply chain development
increase regional investment
support our climate action goal of net-zero emissions by 2045.
To help grow and support this important industry, Offshore Wind Energy Victoria (OWEV) was established as a division of the Department of Energy, Environment and Climate Action (DEECA). OWEV is Victoria’s offshore wind gateway for industry, stakeholder and community engagement.
Steps to establishing an offshore wind farm
Developing an offshore wind farm requires extensive planning, environmental assessments, and regulatory approvals.
Before an area is officially declared, 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 Australian and Victorian Government agencies, industry stakeholders and the community. Potential developers may also start earlier investigations in possible offshore wind areas. This 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.
Once an area is declared suitable for offshore wind, the Australian Government invites applications for feasibility licences. This is the first licence needed in the offshore wind development process.
The licence process
Offshore wind developers require multiple licences for the different stages of developing an offshore wind farm.
After an area is declared suitable for offshore wind, developers can apply for a feasibility licence. These are issued by the Australian Government for a period of up to 7 years.
The licence allows developers to assess the suitability of their project by undertaking detailed environmental assessments and geotechnical surveys, obtaining approvals and carrying out further consultation on their proposed projects.
As part of this process, developers must develop a management plan. This shows how the above activities will be carried out, including:
how they will share the area with other users
a plan for gathering and responding to ongoing feedback from stakeholders throughout the life of the project
demonstrating that all activities comply with the EPBC Act approvals
a clear plan for decommissioning.
The management plan must be approved by the Australian Offshore Infrastructure Regulator before an application for a commercial licence, which gives permission for the wind farm to be built, can be granted.
A transmission infrastructure licence allows developers to plan, design, build, operate, maintain and decommission undersea transmission cables to transmit the electricity generated from offshore wind to the onshore grid.
An approved management plan must also be in place and all activities must be conducted in accordance with that plan and the licence.
A commercial licence allows a developer to build, maintain, operate and decommission a wind farm. This is also issued by the Australian Government. Developers will only be granted a commercial licence if they have met all the requirements of their feasibility licence. Once a commercial licence is granted, construction can commence.
A commercial licence lasts 40 years.
Before deciding whether to grant a commercial licence, the Australian Government may require the developer to conduct specific kinds of consultation. A commercial licence also requires a management plan.
Assessments and approvals
All offshore wind farm proposals must undergo a range of assessments and approvals processes under Australian and Victorian Government regulations.
Before an offshore wind energy project can proceed, it must meet the requirements of the Australian Government’s Offshore Energy Infrastructure Act (OEI Act) and all relevant Australian and Victorian environmental requirements.
Licences issued under the OEI Act are separate to approvals under the EPBC Act and any state and territory requirements and approvals under one Act does not guarantee approval under another.
Stay informed and have your say
We understand that Victorians have a keen interest in how offshore wind projects and supporting transmission infrastructure will be developed. We will continue to undertake planned, respectful and ongoing engagement with communities as we establish this new renewable energy resource.
