The Clean Energy Council (CEC) has published a new report, which found that the offshore wind industry could inject $15.2 billion into the Australian economy and attract $100 billion of capital investment.
The Winds of Opportunity report highlights the benefits of offshore wind to Australia’s energy mix and to the communities in which it will operate.
The analysis indicates that Australia could replicate successes achieved by leading offshore wind jurisdictions if it deploys offshore wind in a timely manner and at scale.
The report suggests that a scaled 20GW offshore wind sector could boost Australia’s economy by up to $15.2 billion and create up to 5000 additional jobs. It could attract $100 billion of capital investment to Australia, supporting an industry that employs 7700 people per year and generates $16.9 billion in industry value add.
In addition, the report found that offshore wind could provide reliable, renewable power that strengthens and futureproofs the Australian electricity grid by:
- Complementing onshore renewable generation during peak demand events and when onshore resources are limited
- Decreasing the need for costly back-up power sources
- Unlocking large-scale supply efficiently near demand centres
According to the report, the construction and operational phases of offshore wind present an important opportunity to deliver a just transition for up to 15 per cent of transition-exposed workers near offshore wind areas.
Offshore wind development is also expected to benefit coastal communities, strengthen local maritime industries and spark broader regional economic development.
The report found, Australia’s offshore wind industry is ready to make significant investment decisions but faces multiple headwinds that require government intervention.
The CEC said coordinated policy action will ensure that offshore wind projects get built with private investment. The report outlines four policy levers to prioritise in the next 12 months to overcome barriers and unlock investment, based on engagement with Australian developers and an analysis of mature offshore wind markets:
- Overcome revenue uncertainty: catalyse the national offshore wind industry through initial federal-state co-investment of 4GW through the Victorian Contract-for-Difference offshore wind auctions by 2028.
- Provide consistency on offshore wind aspirations: pool funds and/or leverage existing programmes to lower capital costs of upgrades to enabling infrastructure and guarantee on-schedule delivery to underpin offshore wind projects.
- Minimise project delays: Improve the competitiveness of Australia’s development environment by identifying efficiency gains for permitting and approvals. Incorporate industry feedback and learnings from the implementation of the new regulatory framework for offshore wind.
- Partner for progress: work with the CEC as the national industry body to design and deliver a national offshore wind strategy.
Read the full report here.
