Wedoany.com Report-Sept. 17, The Australian state of Victoria has delayed its upcoming offshore wind auction in Gippsland. Originally scheduled for this month, the auction will now take place no earlier than the end of 2025. This auction serves as an opportunity for offshore wind developers to bid for government support for their projects.

Lily D’Ambrosio, the Victorian Energy Minister, explained that the delay is due to the evolving global market for offshore wind investment. She stated: “As the global market for offshore wind investment changes, we’re making sure the auction is competitive and attractive and will release a new timeline for this process later this year.” D’Ambrosio emphasized the importance of offshore wind to Australia's energy security and confirmed that the state is coordinating with the federal government on the timing.

The Gippsland offshore wind zone, which holds the potential to generate up to 25GW of clean electricity, was designated in 2022. So far, 11 offshore wind projects have been granted feasibility licenses within the zone. Despite these efforts, the region has already faced challenges. Developers of the Navigator North offshore wind farm, a planned AUD 8 billion ($5.3 billion) wind farm, have announced they will not participate in the first round of the state auction. The project, which will consist of 110 turbines and is being developed by Origin and RES, cited the inability to meet the auction timelines as the primary reason for their withdrawal. However, the developers have indicated they will continue working on the project and plan to apply for future auctions.

This delay highlights the complexities and challenges of advancing the offshore wind sector in Victoria, though the government's continued commitment to the sector underscores its strategic importance to Australia's future energy needs. The state aims to ensure that the auction process remains competitive, and developers will likely face additional scrutiny as the revised timeline is announced later this year.