Released May 28, 2025 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The first offshore wind auction in Australia will be launched in September in the state of Victoria, which is spearheading the country's push into the sector.
State Energy and Resources Minister Lily D'Ambrosio said the auction will be based on a confidential Registration of Interest (ROI) process for feasibility licence holders that is underway. Winners will be financially supported through a contract-for-difference (CfD) and availability payment, with the government stating that the "CfD will provide investment certainty for proponents while the availability payment will only be made once infrastructure is generating electricity, providing energy security." Victoria will be home to the nation's first offshore windfarms and has a target of 2 gigawatts (GW) of capacity by 2032, 4 GW by 2035 and 9 GW by 2040. Contracts will be awarded to the winners in late 2026.
"We're giving industry the certainty it needs to invest and help us start building the renewable energy Victoria needs to push down energy bills," D'Ambrosio said. "Victoria's offshore wind industry will provide jobs and career pathways for thousands of workers and boost local businesses through manufacturing and supply chain development."
Last year, Australia's government awarded the first feasibility licences for offshore wind projects located in the waters off Gippsland in Victoria. Six projects received licenses in May, with a further six awarded in July. The 12 projects, if they proceed to construction, have a potential generation capacity of 25 GW, according to Chris Bowen, Australia's Minister for Climate Change and Energy. They would create 15,000 jobs during construction and maintain up to 7,500 jobs on completion, according to the government. Industrial Info is tracking 19 proposed Australian offshore wind projects worth almost US$78 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
The recent, dominant general election win by Australia's center-left Labor Party, partly accredited to U.S. President Donald Trump's support for the losing Liberal Party in the run-up, has cemented the country's push into renewables. The win against the anti-renewables and pro-coal and -mining Liberal Party, and the ousting of its leader Peter Dutton from his seat, allows the Labor Party under Prime Minister Anthony Albanese to continue its ambitious renewable energy agenda. As reported by Industrial Info recently, funding for renewable projects stands at about AU$2.25 billion (US$1.46 billion), spread across 663 projects administered by the Australian Renewable Energy Agency (ARENA). In addition to wind and solar, projects include green hydrogen and ammonia, sustainable aviation fuel (SAF), other biofuels, distributed energy resources such as rooftop solar and batteries, electric vehicle charging stations, grid investments and others. For additional information, see May 6, 2025, article - 'Trump Effect' in Australia Boosts Center-Left Labor Party.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
State Energy and Resources Minister Lily D'Ambrosio said the auction will be based on a confidential Registration of Interest (ROI) process for feasibility licence holders that is underway. Winners will be financially supported through a contract-for-difference (CfD) and availability payment, with the government stating that the "CfD will provide investment certainty for proponents while the availability payment will only be made once infrastructure is generating electricity, providing energy security." Victoria will be home to the nation's first offshore windfarms and has a target of 2 gigawatts (GW) of capacity by 2032, 4 GW by 2035 and 9 GW by 2040. Contracts will be awarded to the winners in late 2026.
"We're giving industry the certainty it needs to invest and help us start building the renewable energy Victoria needs to push down energy bills," D'Ambrosio said. "Victoria's offshore wind industry will provide jobs and career pathways for thousands of workers and boost local businesses through manufacturing and supply chain development."
Last year, Australia's government awarded the first feasibility licences for offshore wind projects located in the waters off Gippsland in Victoria. Six projects received licenses in May, with a further six awarded in July. The 12 projects, if they proceed to construction, have a potential generation capacity of 25 GW, according to Chris Bowen, Australia's Minister for Climate Change and Energy. They would create 15,000 jobs during construction and maintain up to 7,500 jobs on completion, according to the government. Industrial Info is tracking 19 proposed Australian offshore wind projects worth almost US$78 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
The recent, dominant general election win by Australia's center-left Labor Party, partly accredited to U.S. President Donald Trump's support for the losing Liberal Party in the run-up, has cemented the country's push into renewables. The win against the anti-renewables and pro-coal and -mining Liberal Party, and the ousting of its leader Peter Dutton from his seat, allows the Labor Party under Prime Minister Anthony Albanese to continue its ambitious renewable energy agenda. As reported by Industrial Info recently, funding for renewable projects stands at about AU$2.25 billion (US$1.46 billion), spread across 663 projects administered by the Australian Renewable Energy Agency (ARENA). In addition to wind and solar, projects include green hydrogen and ammonia, sustainable aviation fuel (SAF), other biofuels, distributed energy resources such as rooftop solar and batteries, electric vehicle charging stations, grid investments and others. For additional information, see May 6, 2025, article - 'Trump Effect' in Australia Boosts Center-Left Labor Party.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
