The Victorian Government has released its ‘Offshore Wind Energy Implementation Statement 3’ (Statement 3) which is an updated guide to industry, stakeholders and the community on the Victorian offshore wind sector.
Most significantly, the Victorian Government will legislate its offshore wind targets with the introduction of the ‘Climate Change and Energy Legislation Amendment (Renewable Energy and Storage Targets) Bill 2023. This bill enshrines the previously announced capacity targets of 2GW (by 2032), 4GW (by 2035) and 9 GW (by 2040).
The Statement also provides further clarity around the offshore wind competitive auction process, including key timelines leading up to contract award by late 2026.
The Statement 3 Key Updates area are set out below:
| Statement 3 Key Updates | |
| Procurement Approach |
|
| Transmission Update | VicGrid (who will coordinate the development of the offshore wind transmission infrastructure) to announce preferred transmission project options in Q1 2024, targeting delivery by 2030. |
| Ports Update | Port of Hastings identified as primary assembly port (subject to environment and other approvals) for the ‘Victorian Renewable Energy Terminal’, with operations expected to commence by late 2028. |
| Policy, workforce and industry development update |
|
| Protecting the environment | Reaffirmed commitment to protecting the environment and being guided by Environment Protection and Biodiversity Conservation Act 1999, Environment Effects Act 1978 and the Marine and Coastal Act 2018. |
| Legislation and regulatory reform | Introduction of Climate Change and Energy Legislation Amendment (Renewable Energy and Storage Targets) Bill 2023 to legislate offshore wind energy capacity targets (2GW by 2032, 4GW by 2035 and 9GW by 2040).
Read more about the national regulatory regime for offshore wind here. |
| Traditional Owner Partnerships | Reaffirmed commitment to the Gunaikurnai Land and Waters Aboriginal Corporation so that traditional owners and feasibility licence holders achieve mutually beneficial agreements.
Read more about the relationship between offshore wind and traditional owners here. |
The Statement provides certainty and confidence for businesses and investors to commit to offshore wind projects in the area. These updates align with a number of recent Victorian government reforms, including the reintroduction of the State Electricity Commission, which will lead Victoria’s renewable energy transition.
Read more about the advent of offshore wind in Australia in our recent New Energy Quarterly: The Way of Water.
The Hamilton Locke team advises across the energy project life cycle – from project development, grid connection, financing, and construction, including the buying and selling of development and operating projects.
Matt Baumgurtel leads the New Energy sector team at Hamilton Locke, which specialises in renewable energy, energy storage and hydrogen projects and transactions as part of the firm’s Energy, Resources, Construction and Infrastructure practice. The New Energy sector team has market-leading experience with offshore wind developments across Australian jurisdictions.
For more information, please contact Matt Baumgurtel.
