Victoria’s offshore wind sector is progressing, with the State Government releasing the Offshore Wind Energy Implementation Statement 4 (IS4).
The IS4 updates industry and the community on the next steps towards building 2GW of offshore wind energy in the state.
To start the auction process, a confidential registration of interest (ROI) process kicked off for offshore wind feasibility licence holders in March 2025, set to close in May 2025.
This ROI process will inform the request for proposal (RFP) stage later in 2025.
Proponents will be supported through a contract-for-difference (CfD) and availability payment. The CfD is expected to provide investment certainty for proponents, and the availability payment will only be made once infrastructure is generating electricity, providing energy security.
The Victorian Government is expected to launch its RFP stage in September 2025, with contracts to be awarded before October 2026.
The State Government said hearing from the community is critical to making sure the development of the offshore wind industry is done right – which is it is making it a requirement that proponents provide additional benefits above what will be required under the Renewable Energy Zones Community Benefits Scheme – to the communities that host their projects.
The industry will work towards a minimum local content requirement of 80 per cent for the operations and maintenance phase – 2032 onwards – of the first tranche of projects. During this period, ten per cent of all labour hours will be worked by apprentices, trainees and cadets.
The State Government said it will open grant applications for up to $4.9 million to run the Wind Worker Training Centre to ensure Victoria has the pipeline of workers needed to support the energy transition, marking another is another step towards meeting the legislated offshore wind energy targets of 2GW by 2032, 4GW by 2035 and 9GW by 2040.
Victorian Minister for Energy and Resources, Lily D’Ambrosio, said, “We’re giving industry the certainty it needs to invest and help us start building the renewable energy Victoria needs to push down energy bills.
“Victoria’s offshore wind industry will provide jobs and career pathways for thousands of workers and boost local businesses through manufacturing and supply chain development.”
For more information and to view the IS4, visit https://www.energy.vic.gov.au/renewable-energy/offshore-wind-energy/offshore-wind-energy-victoria
