Victoria opens first offshore wind tender for 2 GW in Australia

Victoria's Minister for Energy and Resources Jaclyn Symes on Aug. 26 opened the Request for Proposal process for the state's first two gigawatts of offshore wind, marking Australia's first offshore wind auction, the Victorian government said in a statement.

Australia has been accelerating the adoption of renewables in a bid to lower power prices and to achieve its ambitious climate goals, including a 2035 emissions reduction target of 62%-70% below 2005 levels.

"This auction is a giant leap towards getting Australia's first offshore wind projects built -- attracting billions in investment, creating thousands of jobs and delivering the reliable power we need as coal retires," Symes said.

"Victoria has some of the best offshore wind resources in the world. This auction is about harnessing that advantage and building the next generation of energy..."

The tender will provide enough energy to power around 1.5 million homes each year, the government said. The move will add large amounts of new renewable energy to the grid as the state's ageing coal-fired generators retire.

Nine gigawatts of offshore wind

Contracts are expected to be integrated into the national Electricity Services Entry Mechanism (ESEM), providing a pathway toward Victoria's target of nine GW of offshore wind, it said.

"Victoria's record investment in renewables is delivering the lowest wholesale power prices in the country," the government said. Renewables accounted for 45% of the state's total electricity generation.

The auction will close in August 2027, with contracts expected to be awarded in 2028, the state government said.

Australia offered feasibility licenses to three offshore wind projects in Western Australia that could deliver about 4 GW of renewable electricity capacity, the government said in January, marking a significant step forward for the emerging offshore wind industry.

Australia's federal government opened registrations for the 11th tender round under its Capacity Investment Scheme in Western Australia on Aug. 25, aiming to bring forward 1.8 gigawatts of renewable generation capacity, according to a statement.

Australia has a projected renewable energy installed capacity — solar, wind, biomass and waste — of 57.94 GW in 2026, according to data from S&P Global Energy.