Cheaper, more reliable power is on the way for even more Victorian households, with Australia’s first offshore wind auction now live and set to create thousands of new jobs.
Minister for Energy and Resources Jaclyn Symes today opened the Request for Proposal process for Victoria’s first two gigawatts (GW) of offshore wind.
The auction represents enough capacity to power around 1.5 million homes each year.
Victoria has some of the best offshore wind resources in the world, and making the most of them will add large amounts of new renewable energy to the grid as the state’s ageing and increasingly unreliable coal-fired generators retire.
Offshore wind is expected to complement Victoria’s growing solar, onshore wind and storage capacity, helping keep the lights on while putting downward pressure on power bills.
“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,” said Symes.
Under the process, projects will be able to bid for contracts and will be assessed on value for money, deliverability, and the benefits they offer to local workers, businesses and communities.
Successful projects will progress towards investment, construction and operation, with the process expected to ensure Gippsland continues its proud history as an energy powerhouse.
Contracts arising from the auction are expected to be integrated into the national Electricity Services Entry Mechanism (ESEM), providing a pathway towards Victoria’s target of nine GW of offshore wind.
The auction will close in August 2027, with contracts expected to be awarded in 2028.
Symes said the state’s offshore wind potential put it in a strong position to build the next stage of its energy sector.
“Victoria has some of the best offshore wind resources in the world,” she said.
The auction builds on Victoria’s record investment in renewables, which has already delivered the lowest wholesale power prices in the country.
Adding further cheap renewable energy to the grid is expected to keep driving prices down. Renewables currently account for 45 per cent of the state’s total electricity generation.
The state government’s broader energy transition plan is projected to create 68,000 jobs in Victoria by 2040, with 37 per cent of those roles flowing into regional areas, reinforcing the role of regions such as Gippsland in the state’s renewable energy future.
The launch of the Request for Proposal process marks a significant milestone in Victoria’s efforts to diversify its energy mix beyond onshore renewables.
By tapping into offshore wind resources for the first time, the state aims to secure a new, large-scale source of clean energy capable of operating around the clock, a key advantage as coal-fired power stations approach retirement.
