4C is now TGS

We are excited to announce a significant milestone in 4C Offshore's journey. Our integration into the TGS family marks the beginning of a new era in offshore wind market intelligence.

Learn what this means for you!

Australia: third offshore zone declared, but area cut by 80%

By: Patrick Owen 06/03/2024 Department of Climate Change, Energy, the Environment and Water

General Windfarms

The Australian Federal Government have announced that the third offshore wind zone in Australia has been declared. On 6th March, the Minister for Climate Change and Energy declared the Southern Ocean region off Victoria, following two months of public consultation. Feasibility applications are now open, with the window lasting until 2nd July 2024.

However, the declared area is around one fifth of the size of the original proposed area. It comes in at a maximum size of 1,030 km2, compared to the originally proposed area, which was 5,132 km2. The original area stretched 190 km along the coast, from the Limestone Coast region to Warrnambool in Victoria.

The reduced size means the maximum capacity of the area has dropped from 14.6 GW to 2.9 GW. This suggests only a handful of projects will be awarded feasibility licences to conduct site investigations.

With a far smaller declared area than expected, several projects face an uncertain future. Bluefloat’s Southern Winds project falls near Port Macdonell, and is around 100 km west of the declared area. The project was set to consist of 77 turbines, totalling 1.155 GW.

Similarly, Cape Winds, the joint venture between Australis Energy and Skyborn Renewables, which hugs the coast around Cape Bridgewater and Portland, falls outside of the declared area. This was proposed to have a 1.5 GW capacity.

Spinifex, the project owned by Alinta Energy, is also mostly outside the declared area. This project was proposed to have 1 GW of capacity.

These developers can still submit applications for feasibility licences in the ultimately declared area. However, the application window is only open until 2nd July. The short timeline gives a major advantage to projects already well-progressed with pre-feasibility studies.

The decision to reduce the size of the area comes amid a range of concerns about the environment and cultural heritage. One area, the Bonney Upwelling, is a significant area for endangered marine life such as the Southern Right Whale and several species of migratory birds. The smaller declared zone also avoids the habitat of Southern Rock Lobsters, which form a lucrative industry for the region.

The decision may also reflect that Victoria recently issued 12 GW of preliminary feasibility licenses in the Gippsland region. This means it already has the ability to achieve its offshore wind targets of 2 GW by 2032, 4 GW by 2035 and 9 GW by 2040. Huge capacity in the Portland region, therefore, is less critical for Victoria in achieving these ambitions.

For more information about offshore wind farm projects across the globe, click here.

Premium

4C Offshore Premium, our most popular subscription, gives you full access to use the 4C Offshore WebApp which includes exclusive offshore wind, transmission and vessel reports, news and downloads.

Request a 30 minute Demo

Australia: third offshore zone declared, but area cut by 80%

Back to News

Trending News!