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Australia declares third offshore wind zone

  • Market: Electricity
  • 06/03/24

Australia's federal government has declared an area in the Southern Ocean off Victoria state as the country's third offshore wind zone, although its potential power generation capacity has been significantly reduced following public consultation last year.

The declared zone can host up to 2.9GW of offshore wind capacity, down from a maximum of 14GW as originally proposed. It spans 1,030km² around 20km offshore Port Fairy, while the original area would run from offshore Warrnambool in western Victoria all the way to Port MacDonnell in South Australia (SA). The declared zone no longer includes an area off SA.

Australia's climate change and energy ministry said it decided to declare a much smaller area for offshore wind following feedback from a public consultation process over June-August last year, when it received 3,285 submissions. The smaller zone avoids important environmental areas and major commercial fishing grounds, while addressing concerns regarding visual impacts.

Companies will now be officially able to submit feasibility licence applications for offshore wind projects in the new zone. Applications need to be lodged until 2 July this year. Construction work can only begin after the feasibility stage is completed and developers have gained subsequent environmental and management plan approvals, the ministry noted.

Apart from registering consistently strong winds and being close to existing connections to the grid, the new declared zone is close to areas of high electricity demand, including Alcoa's 358,000 t/yr Portland aluminium smelter.

Australia declared its first offshore wind zone in the end of 2022, in an area spanning 15,000km² in the Bass Strait off the coast of Gippsland in Victoria that can receive up to 10GW of capacity. But the federal government early this year rejected Victoria's preferred seaport terminal project based on environmental concerns, which could affect projects.

A second zone of 1,854km² and a potential 5.2GW of capacity was declared in July last year off the Hunter region in New South Wales (NSW). The federal government has also carried out public consultations for two other proposed areas — off Illawarra in NSW with a potential 4.2GW and in the Bass Strait off the coast of northern Tasmania with up to 28GW of potential capacity. It is currently consulting on a sixth and final zone, off the Bunbury region in Western Australia, which could encompass 7,674km² and host as much as 20GW of capacity.

Australia has no operational offshore wind farms, with the first units expected to come on line only in the early 2030s. The country has passed the Offshore Electricity Infrastructure Bill 2021, allowing offshore wind projects for the first time, which could help it to both its renewable energy targets and boost hydrogen projects.


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