Victoria Opens Australia’s First Offshore Wind Auction
The state says the auction will draw private investment to replace retiring coal plants by integrating contracted offshore power into the national ESEM.
Overview
- The Victorian government launched a 12-month request for proposals for 2 gigawatts of offshore wind capacity off the Gippsland coast, with the RFP opening on Tuesday and bids due in August 2027.
- Successful projects will receive government contracts that Victoria expects to fold into the national Electricity Services Entry Mechanism, with awards targeted for 2028 to move projects toward financing, construction and operation.
- Bidders will be judged on value for money, deliverability and benefits for local workers, businesses and communities, and the state says the first 2 GW could supply about 1.5 million homes and create thousands of jobs.
- Industry players such as Southerly Ten have welcomed the auction and will review the documents before deciding to bid, but previous delays to the program highlight remaining risks around approvals, port access and project finance.
- The auction is the initial step in Victoria’s broader plan to scale offshore wind to at least 2 GW by 2032 and up to 9 GW by 2040, building on declared zones off Gippsland and Warrnambool and years of local project development work.