The Victorian government’s long-awaited first offshore wind auction has been delayed once again, with Energy Minister Lily D’Ambrosio confirming the setback during her address at the Asia Pacific Wind Energy Summit in Melbourne.
The auction, initially scheduled for September 2025, is intended to grant contracts to developers to begin construction of Australia’s first offshore wind farms.
However, its progress remains dependent on securing federal funding.
The delay represents another hurdle for Victoria’s ambitious offshore wind program, which aims to position the state as a leader in renewable energy while replacing capacity lost from the closure of coal-fired power stations.
Despite Victoria establishing a policy framework and targets for offshore wind, the absence of firm financial backing from the Commonwealth is preventing the auction process from proceeding.
Industry observers argue that the funding impasse underscores the complexity of coordinating Australia’s first major offshore wind rollout.
While state governments can commit to auction design and developer partnerships, large-scale construction requires significant federal involvement to provide certainty for investors.
Without a clear funding pathway, developers may hesitate to make investment decisions that could help establish the sector nationally.
Friends of the Earth, which has long campaigned for the development of offshore wind, expressed frustration with the announcement, citing the need for greater certainty in affected communities.
“It’s disappointing that the Albanese government has not yet partnered with the Victorian government to deliver the country’s first offshore wind auction,” said spokesperson Anna Langford, while noting the group remains hopeful for progress before the end of the year.
Last month, the organisation arranged a delegation to Canberra to press its case to federal MPs.
Local community representatives have also highlighted the urgency of moving forward.
Gippsland groups, in particular, stress that offshore wind projects will be crucial for creating new employment opportunities, sustaining regional economies, and ensuring grid security once coal plants retire.
The delay, they argue, risks undermining confidence among workers and developers alike, who are waiting on firm commitments before projects can break ground.
The Victorian government has set ambitious targets to bring offshore wind capacity online, with the first projects expected to play a critical role in meeting state climate goals and national emissions reduction commitments.
Whether those timelines can still be achieved now depends largely on whether Canberra joins Melbourne in underwriting the auction before the end of 2025.
