Australia Launches First Offshore Wind Farm Zone in Victoria

A wind turbine farm in the Baltic Sea, northeast of Rugen Island in Germany, on June 16, 2022. Fred Tanneau/AFP via Getty Images

Australia has officially launched the country’s first offshore wind farm zone, with government officials and environmental advocates touting the project as a “game changer” for the domestic energy market.

The zone is located on the coast of Gippsland south of Victoria and covers about 15,000 square kilometres (5,790 square miles) offshore, running from Lakes Entrance in the east to south of Wilsons Promontory in the west.

The Australian government said the offshore wind projects off Gippsland could generate over 3,000 jobs in the next 15 years during the development and construction phases and another 3,000 ongoing jobs when they commenced operation.

At present, the Victorian government has confirmed that three offshore projects will be developed within the zone: Seadragon, Great Southern, and Star of the South.

The future wind farms would be connected to the power grids on the mainland in Gippsland and La Trobe Valley.

The government estimated that the zone could produce more than 10 gigawatts of year-round wind energy.

Labor Ministers Sing The Praises of Project

Energy and Climate Change Minister Chris Bowen emphasised the importance of the announcement, saying the zone would provide Australia with affordable, reliable and secure energy and new economic opportunities.

“It will support new jobs and economic development in the regions that have always powered Australia and will power Australia into the future,” he said in a press release.

“Australia has huge potential in offshore wind, and today the Albanese government is giving this industry a green light.”

Australian Energy Minister Chris Bowen speaks during the Sydney Energy Forum in Sydney, Australia, on July 13, 2022. Jaimi Joy - Pool/Getty Images

Industry and Science Minister Ed Husic said the federal government wanted to see more large-scale projects built in the upcoming years.

“This will help integrate Australian manufacturing with renewable energy infrastructure, delivering more jobs in Australian companies,” he said in a statement.

The environmental group Friends of the Earth welcomed the new offshore wind zone, saying it would be a “game changer” for Victoria’s efforts in dealing with climate change.

Meanwhile, Shadow Treasurer Angus Taylor said Australians wanted affordable, reliable energy and that the solution was to have more supply going to the energy market.

Project to be Streamlined

At the event, the federal government announced that the Star of the South offshore wind farm has received the major project status, which will fast-track the project’s development by removing unnecessary regulatory delays.

Star of the South CEO Charles Rattray said the status was good news for all the involved parties and would improve cooperation between the project managers and government.

The wind farm is expected to generate up to 2.2 gigawatts of electricity each year at its full potential, which will power 1.2 million homes in Victoria or roughly 20 percent of the state’s electricity needs.

While the project receives support from the government, its construction phase is expected to take six to 10 years, which means it will not relieve consumers of immediate skyrocketing energy bills.

A view of the Split Point Lighthouse on the Great Ocean Road in Aireys Inlet, Australia, on Dec. 31, 2015. AAP Image/Tracey Nearmy

In a recent poll by the Australian Financial Review, 60 percent of Australians supported extracting more domestic gas to help curb soaring energy prices.

Also, during the occasion, the federal government declared its support for the Victorian Labour government’s nation-first offshore wind targets as the state aimed to generate 2 gigawatts offshore wind capacity by 2032, 4 gigawatts by 2035 and 9 gigawatts by 2040.

Victorian Energy and Resources Minister Lily D'Ambrosio said that offshore wind was crucial for achieving the state’s ambitious target of providing 95 percent of its electricity needs with renewable energy by 2035.

Changes to the Offshore Wind Zone

The announcement came following a lengthy consultation process with pushback from local residents.

In September, the Australian Broadcasting Corporation (ABC) reported that Gippsland residents were concerned wind turbines would destroy the coastline’s beauty.

Their concerns pressured the local council to request changes to the originally proposed areas of the offshore wind zone.

As a result, the federal government decided to remove South Gippsland from the zone and place a 10 kilometre buffer zone from the shore to limit the visual and environmental impact instead of the 5 kilometres previously announced.

“I am declaring the area east of Wilsons Promontory, not the area west of Wilsons Promontory, in response to community concerns, environmental concerns and feedback,” Bowen said.

“The area did not receive the same level of community support as the proposal east. And there are also environmental concerns with the famous, orange-bellied parrot which need to be worked through.”

However, the minister said the government would still consider reinstating South Gippsland but only after further investigations into the zone’s environmental impacts.