Overview
- AGL cancelled the 2.5‑gigawatt Gippsland Skies plan and handed back its federal feasibility licence for the Gippsland offshore wind zone.
- It is the third Gippsland project to fold this year after RWE’s Kent and BlueFloat Energy’s Gippsland Dawn, while Origin’s Navigator North remains on hold.
- AGL says it will redirect investment toward onshore wind, grid‑scale batteries, pumped hydro and fast‑response gas firming.
- Industry headwinds reported include higher interest rates, inflated equipment and construction costs, supply‑chain bottlenecks and US policy changes under President Donald Trump that removed federal support and revoked permits.
- Victoria is targeting 2 GW of offshore wind by 2032 rising to 9 GW by 2040, but the auditor‑general says the 2032 goal will not be met; nine Gippsland feasibility permits remain active and the state is expected to outline an offshore wind support auction plan soon.