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Australia hits milestone with Bunbury offshore wind licences

29 Jan, 2026
Bunbury zone becomes offshore wind hub



Australia’s offshore wind industry has reached another key milestone, with final feasibility licences offered to three projects that together could add up to 4 gigawatts (GW) of renewable electricity to Western Australia’s South West Interconnected System.

The projects are expected to bolster the region’s long‑term energy security and create new clean‑energy opportunities over time.

Bunbury Offshore Wind has received offers for two feasibility licences in the Bunbury zone, while Westward Wind has been offered one licence in the same area.

Once accepted, these offers will enable the companies to undertake detailed studies and community engagement activities under the federal feasibility licence framework.

Federal Minister for Climate Change and Energy Chris Bowen said the new licences mark another step forward in building a strong offshore wind sector that will supply clean, reliable power and long‑term regional employment.

He said the three projects have the potential to deliver up to 4 GW of cleaner electricity for Western Australian households and businesses, describing offshore wind as a cornerstone of the federal government’s strategy to expand renewable energy and secure jobs across regional areas.

Bowen noted that offshore wind can generate consistently across the day and into the evening, taking advantage of the country’s steady coastal winds.

This would reduce reliance on gas generation during peak demand periods and provide a more stable supply of renewable energy.

He added that developing offshore wind opens the door to thousands of construction and maintenance jobs across local supply chains, ports and regional communities.

Assistant Minister for Climate Change and Energy Josh Wilson said the decision strengthens Western Australia’s transition to clean energy while maintaining the southwest region’s longstanding role as the state’s power hub.

Offshore wind, he explained, offers large‑scale, dependable generation that complements solar and other onshore renewables.

In November, renewable sources already supplied a record 56 per cent of electricity to WA’s main grid, he said.

The new Bunbury projects would build on that achievement and help offset supply gaps as coal‑fired generation is phased out.

Wilson said the federal government’s creation of the Bunbury offshore wind zone ensures that the southwest will remain central to WA’s electricity system during the energy transition.

He described the move as vital for safeguarding jobs and supporting regional industries as they decarbonise.

Alongside the feasibility offers, Bowen also opened applications for research and demonstration (R&D) licences, which will permit trials of emerging offshore renewable technologies nationwide.

He said these new permits will broaden the sector beyond current large‑scale generation projects, encouraging local innovation and helping universities, developers and research cooperatives to test new systems in Australian waters.

Bowen said R&D licences are now available across all six declared offshore wind zones, providing greater certainty for both domestic and international proponents.

He emphasised that this initiative signals Australia’s intent to remain competitive in developing advanced offshore wind technologies.

Meanwhile, no feasibility licences will be issued for generation projects in the Illawarra or Bass Strait zones.

According to the government, the Illawarra round could not proceed after developer BlueFloat withdrew its application while scaling back global operations, and the Bass Strait process attracted too few competitive bids.

Both areas, however, remain open for future R&D activities.

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