The Victorian Government has breathed life into the state’s offshore wind industry, announcing the auction of 2GW of capacity.
The request for tender (RFP), set to open in August, was originally set to occur in September 2025, but was delayed with Minister for Energy and Resources Lily D’Ambrosio highlighting the need for the auction process to be “competitive and attractive”.
D’Ambrosio said today that the Victorian Government wanted to give industry “the certainty it needs to invest” while supporting a renewable energy rollout that will help “push down energy bills”.
“We’re working closely with developers on the progress of this exciting auction to ensure strong competition to secure the best projects and best value for Victorians,” she said.
“We’ve always said Victoria will host the country’s first offshore wind industry and that’s why Victoria pushed for the ESEM (Electricity Services Entry Mechanism) to accommodate technologies including offshore wind.”
The Victorian Government said the design of the ESEM – a post-2030 mechanism to drive investment in new technologies in the National Electricity Market (NEM) – was being finalised, with offshore wind set to be incorporated.
The ESEM is set to replace the Capacity Investment Scheme from 2027.
Victoria’s offshore wind industry is expected to support over 6000 jobs and “generate billions in investment”.
“Gippsland has always been critical to keeping the lights on across Victoria – and it will continue to be into the future as it hosts the country’s first offshore wind projects,” the Victorian Government said.
Investment has ebbed and flowed in Victoria’s offshore wind industry, with Star of the South one of the early movers. The company is looking to build a 2.2GW offshore wind farm to help power 1.2 Victorian homes.
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