Victoria launches Australia’s first offshore wind auction

Victoria has launched Australia’s first offshore wind auction, opening a request for proposals process for an initial 2GW of capacity off the Gippsland coast that the state believes can power about 1.5m homes.

Projects will be judged on value for money, deliverability, and benefits for local workers, businesses and communities.

Successful bidders will move towards investment, construction and operation, with contracts expected to be integrated into the national electricity services entry mechanism.

“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. 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 right here in Victoria,” said Jaclyn Symes, Victoria Energy and Resources Minister.

The tender is scheduled to close in August 2027, with contracts due to be awarded in 2028. The 2GW round is the first step towards Victoria’s longer-term target of 9GW of offshore wind by 2040, alongside interim goals of 4GW by 2035.

Renewables already account for about 45% of Victoria’s electricity generation, but the state is racing to replace ageing coal-fired plants with new capacity.

The government expects its energy transition plan to create around 68,000 jobs by 2040, with 37% in regional areas, and is positioning the region as a central hub for offshore wind development, port infrastructure, and supply chain activity.

Nine active project licences remain in the declared Gippsland offshore wind zone, with a combined proposed capacity of more than 20GW, though only a fraction is likely to be supported under the initial 2GW auction.