Australia’s Offshore Wind Energy Projects Gain Momentum

Australia continues to make strides in the development of its offshore wind energy sector. With the recent granting of two new feasibility licenses, the country is moving closer to launching its first offshore wind farms in the Southern Ocean and the Pacific Ocean.

It has only been a few years since Australia passed legislation to establish the framework for offshore wind energy development. Since then, the government has been actively selecting areas and accepting project applications to kickstart the planning process.

Two major projects, Novocastrain Wind and Spinifex, have recently received full feasibility licenses to move forward with their development plans. Novocastrain Wind, owned by Equinor and Oceanex Energy, aims to install up to 2.1 GW of capacity off the Hunter coast in New South Wales. On the other hand, Spinifex, co-developed by Parkwind and Alinta Energy, plans to deliver 1.2 GW, equivalent to 10% of Victoria’s electricity needs.

These licenses grant the projects the rights to conduct research, seek environmental approvals, and prepare a comprehensive management plan. The management plan must address various aspects, including the projects’ interaction with shipping and fisheries, before they can proceed with feasibility activities.

Both projects will now focus on conducting marine studies, utilizing technologies like lidar buoys to assess wind and ocean conditions. They will also engage with the business community to develop the necessary supply chain. The feasibility licenses provide a timeline of up to seven years, during which the companies will submit construction plans for approval.

RWE, one of the pioneers in Australia’s offshore wind energy sector, received one of the first feasibility licenses in July 2024 for a project in the Bass Strait off the Gippsland coast. This project, expected to have a capacity of up to 2 GW, could potentially become Australia’s first offshore wind farm. RWE aims to apply for a commercial license to build and operate the wind farm for up to 40 years, with a target commissioning date in the 2030s.

These recent developments mark significant milestones in Australia’s journey towards offshore wind energy. The industry players are optimistic about the progress made so far and are committed to further investments to bring these projects to fruition.