By Bojan Lepic

Copyright splash247

The Australian state of Victoria has pushed back the upcoming offshore wind auction in Gippsland.

The offshore wind auction was meant to be held this month. However, the state government has opted to delay it until at least the end of the year.

Offshore wind developers will use the auction to bid for government support for their projects.

“As the global market for offshore wind investment changes, we’re making sure the auction is competitive and attractive and will release a new timeline for this process later this year,” said Lily D’Ambrosio, Victorian energy minister.

She added that offshore wind was essential to Australia’s energy security and that the state was working with the federal government on the timing of the auction.

The Gippsland offshore wind zone, with the potential to deliver 25GW of clean electricity, was declared back in 2022. So far, 11 offshore wind projects have been awarded feasibility licenses.

This is a second hit to the region’s offshore wind sector. Developers of the Navigator North offshore wind farm, set for development off the coast of Gippsland, have already announced that they would not be applying for the first round of state auctions.

The AUD 8bn ($5.3bn) offshore wind farm, developed by Origin and RES, is a 110-turbine farm planned offshore in the Gippsland wind zone. The developers claimed they couldn’t participate in the upcoming auction due to an inability to meet timelines. However, they will continue working on the project and look to apply to other auctions.