Australia, with its extensive coastline and diverse landscapes, is uniquely positioned to harness the power of wind energy on a never-before-seen scale.

As the country strives to best satisfy the needs of a successful energy transition, wind power has steadily surfaced as one of the most favourable renewable energy resources. The wind energy landscape in Australia has witnessed significant achievements, with its impressive array of well-established onshore developments as well as a plethora of promising offshore projects on the horizon.

The nation’s vast coastlines and extraordinary wind conditions also present outstanding potential for both sectors to flourish.

Onshore wind energy has been thriving in Australia’s renewable energy landscape for over 20 years. The start of this new era in Australian energy production began when the country’s first wind farm — the Salmon Beach Wind Farm in Western Australia — commenced operations in 1987.

Today, similar onshore wind farms are scattered around the Australian countryside in all states, with Victoria, South Australia, New South Wales and Western Australia ranking in the top four.

According to the most recent data, WA currently features 20 operational wind farms, while SA has 21 operational wind farms. However, WA has a larger number of proposed projects, with 31 additional wind farms in the planning stages; compared to SA’s 17 proposed projects.

There are several factors why Australia has been so successful in securing onshore wind as a reliable source of energy.

First of all, it is extremely cost-effective as it has become one of the cheapest forms of new electricity generation in the country.

Technological advancements and large-scale efficiencies over the years have also reduced overall costs. On top of this, wind farms usually take just a few months to reach the commissioning stage after commencing construction and this has allowed Australia to swiftly scale up its renewable energy capacity.

Additional factors behind the success of onshore wind include its compatibility with existing land use, with wind farms usually built on agricultural land.

This incentivises farms to lease their property to wind energy companies, allowing them to earn extra income without disrupting their operations.

Additionally, Australia’s geography facilitates exceptional wind conditions in many areas — especially along the southern coastline and in elevated inland regions.

These circumstances have enabled the onshore wind sector in Australia to continue to grow in recent years.

In 2021, the nation had more than 8GW of installed onshore wind capacity, while the most recent data estimates Australia’s total installed onshore wind energy capacity at around 11.3 GW.

This steady increase can be attributed to successful government policies, such as the Renewable Energy Target (RET) and state-based renewable energy auctions.

However, the onshore wind sector faces challenges, including grid connection issues in some remote areas, community concerns about visual impacts and noise, and the need for careful planning to avoid impacts on wildlife, particularly birds and bats.

Despite these challenges, the future of onshore wind in Australia looks bright. The Australian Energy Market Operator’s 2022 Integrated System Plan projects that onshore wind capacity could reach up to 50 GW by 2050, playing a crucial role in the country’s transition to a low-carbon electricity system.

While onshore wind has been powering Australian homes and businesses for years, offshore wind is just beginning to make waves in the country’s energy landscape.

The potential for offshore wind in Australia is enormous, with the Global Wind Energy Council estimating that the country could generate up to 5,000 GW of electricity from offshore wind — a staggering 100 times the installed capacity of Australia’s two largest electricity networks.

The Australian government has recognised this potential and is taking steps to develop an offshore wind industry.

In 2021, the Offshore Electricity Infrastructure Act was passed, providing a framework for the development of offshore renewable energy projects in Commonwealth waters.

Several factors make offshore wind an attractive proposition for Australia. Offshore areas typically experience stronger and more consistent wind speeds, leading to higher energy production.

Further, many of Australia’s major cities and industrial hubs are located near the coast, reducing transmission distances for offshore wind projects.

Offshore wind farms can also utilise larger turbines than their onshore counterparts, increasing energy output per installation.

Moreover, by moving turbines offshore, some of the land use and visual impact concerns associated with onshore wind farms can be mitigated.

There are several priority areas for offshore wind development that have been identified.

The first area to be declared suitable for offshore wind projects is off the coast of Gippsland, Victoria, in the Bass Strait.

This was followed by a second declaration of the Hunter region in New South Wales.

These areas have been chosen for their strong wind resources, proximity to existing transmission infrastructure, and potential to support industrial decarbonisation efforts.

One of the most advanced offshore wind projects in Australia is the Star of the South, proposed for the waters off Gippsland. If built, it could become one of the largest offshore wind farms in the world, with a planned capacity of up to 2.2 GW — enough to power around 1.2 million homes.

However, the development of offshore wind in Australia is also facing challenges.

Offshore wind projects are more expensive to develop and construct than onshore projects, although costs are expected to decrease as the industry matures.

Australia’s deep waters may require the use of floating wind turbines in some areas, a technology which is still evolving.

Careful planning is also needed to minimise impacts on marine ecosystems and migratory bird routes. Additionally, while the Offshore Electricity Infrastructure Act provides a foundation, the regulatory landscape for offshore wind in Australia is still developing.

Despite these challenges, the potential benefits of offshore wind for Australia are significant. Beyond clean energy generation, the industry could create thousands of jobs, drive regional development, and support the growth of green hydrogen production for domestic use and export.

The integration of onshore and offshore wind will be key to maximising the benefits of wind energy for Australia.

This could involve complementary generation profiles, as offshore wind often peaks at different times than onshore wind, potentially providing a more consistent overall wind energy supply.

Onshore and offshore projects could also potentially share transmission infrastructure, reducing overall system costs.