Victoria launches inaugural offshore wind auction targeting 2 GW of clean power

The Victorian government has officially started its inaugural offshore wind auction, with Energy Minister Jaclyn Symes announcing a request-for-proposal for the state’s first two gigawatts of capacity—enough electricity for roughly 1.5 million households. Bidders will compete for government support under the Energy Services Entry Mechanism, a federal recommendation intended to secure long-term revenue for renewable projects, though the mechanism remains pending and Queensland opposes it.

The project area, designated Australia’s first offshore wind zone in 2022, lies off Gippsland’s coast where strong winds and shallow waters meet existing grid links. Nine developers hold feasibility licences, but only a subset are expected to submit bids; the auction deadline is August 2027 with contracts awarded in 2028. The move seeks to fill the gap left by the scheduled closures of the Yallourn and Eraring coal plants and to meet Victoria’s targets of 2 GW by 2032, 4 GW by 2035 and 9 GW by 2040. Industry leaders such as Erin Coldham of Southerly Ten and environmental groups have welcomed the certainty the auction provides, while political analysts note election timing and cost uncertainties as lingering risks.