Offshore Wind Developers Sound Alarm Over Unclear Support in Gippsland
Jul 17
2 min read
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Australia’s offshore wind dream in Gippsland is at a critical crossroads, as developers demand stronger government backing and clear revenue frameworks to justify their billion-dollar investments.
⚠️ Business Case Still Unclear
Offshore wind developers like RWE and Ocean Winds say they’re pouring in millions upfront but still don’t know how or when they’ll get paid.
“We are many things, but we’re not a non-profit organisation,” said RWE’s Jens Orfelt at the Australian Wind Energy 2025 forum in Melbourne.
They stress the lack of long-term price certainty, off-take agreements, or visibility into government-backed support mechanisms, like Contracts for Difference (CfDs), which are critical to making projects bankable.
🇩🇰 Europe’s Wake-Up Call
Even mature markets are struggling. Denmark’s recent 3 GW offshore wind auction failed due to cost concerns, and the government had to step in with a $6.5 billion CfD guarantee. Now, the Netherlands is preparing its first subsidised auction in 8 years.
Australia may need to learn fast, or risk scaring off its early investors.
🎯 Victoria’s Auction: A Partial Answer
Victoria is expected to launch its first offshore wind auction in September, offering CfDs and availability payments. While this could provide clarity for some developers, many say it’s not enough.
Ocean Winds’ Pelayo Rodriguez Alonso called the situation a “commercial challenge”, stressing that offshore wind has “huge potential,” but only if the government gives it a push forward.
🏗️ Port Issues & Bureaucratic Gridlock
Beyond financial uncertainties, developers are also frustrated by regulatory misalignment.
The rejection of Hastings Port by the federal EPBC agency over environmental concerns continues to spook developers. Though a revised plan is in play, the initial “clearly unacceptable” label created long-lasting doubts.
Developers now want top-down leadership to streamline agencies and align goals across federal and state authorities.
🕒 Clock Ticking on Skilled Resources
Time isn’t on their side. Global competition is heating up for specialist marine services, offshore turbine tech, and skilled labor. Without fast-tracked coordination, Australia risks losing out on critical offshore supply chain advantages.
“We need an aligned approach,” Orfelt said. “We’re all walking in the same direction, but not at the same pace.”
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