The government of Australia's Victoria state has opened a bidding process for its first 2 GW of offshore wind capacity, marking the launch of the country's first offshore wind auction.
Energy and Resources Minister Jaclyn Symes opened the Request for Proposal process on August 26, with projects to be assessed on value for money, deliverability and benefits for local workers, businesses and communities.
The 2 GW of planned offshore wind capacity is expected to generate enough electricity to power about 1.5 million Victorian homes each year.
The projects are intended to add renewable generation to Victoria's electricity grid as ageing coal-fired generators retire, complementing solar, onshore wind and energy storage.
Successful projects will progress towards investment, construction and operation, with the government saying the development will support Gippsland's role as an energy-producing region.
The contracts are expected to be integrated into the national Electricity Services Entry Mechanism, providing a pathway towards Victoria's longer-term target of 9 GW of offshore wind capacity.
The auction is scheduled to close in August 2027, with contracts expected to be awarded in 2028.
“This auction is a giant leap towards getting Australia’s first offshore wind projects built - attracting billions in investment, creating thousands of jobs and delivering the reliable power we need as coal retires.
“Victoria has some of the best offshore wind resources in the world. This auction is about harnessing that advantage and building the next generation of energy right here in Victoria,” Symes said.
The state government said renewable sources accounted for 45% of Victoria's total electricity generation. It also expects its energy transition plan to create 68,000 jobs in Victoria by 2040, with 37% of those jobs in regional areas.