Two announcements this month signal the offshore wind industry in Gippsland is edging closer to becoming reality, despite concerns that a change in the Victorian government come November could derail the roll out of turbines in the Bass Strait.
What happened: Last year, South Gippsland and Wellington Shire councils won $4.7 million in funding from the federal government to work out which communities will need housing, land, infrastructure and road developments before the thousands of expected jobs arrive in the region. This week they announced how that funding would be used.
While council planning proceeds, the Victorian government confirmed Australia’s first ever offshore wind auction will be later this month.
⚡ A renewable preparation plan
South Gippsland and Wellington Shire councils’ first step in utilising the funding package from the federal government is hiring a project coordinator who will lead planning on how best to prepare the region for the 15,000 expected jobs during the construction of offshore wind turbines.
South Gippsland Mayor, Nathan Hersey, told the Monitor the shires are looking to make the most of the economic opportunity from offshore wind.
This preparation includes increasing housing and worker accommodation, rezoning land for industrial and commercial development, improving roads and drainage and expanding community facilities.
Where will there be growth? The Renewable Energy Land and Infrastructure Plan (RELIP) will focus on the area around Barry Beach, Port Anthony, Sale, Wurruk, West Sale, Yarram, Foster and Leongatha.
“We need to make sure … we can accommodate the workers, because we don't want to see a fly-in, fly-out workforce,” Hersey said. “We don't want to see our roads under pressure, we want to see our quality of life continue.”
Hersey said the plan is the first step in preparing the shires for offshore wind and that more funding would be sought from the state and federal governments for specific works later.
He said community consultation will play an important role and residents will be invited to give feedback on a variety of issues.
Dates for a community consultation period have not been set.
🧑⚖️ Going once, going twice
While councils are laying the groundwork for infrastructure upgrades, developers are gearing up to bid in Gippsland Offshore Wind Zone’s first auction.
At the offshore wind auction this month, developers will bid on how much money they need per MWh of electricity to make it commercially viable to build a wind farm. The state government then selects the most competitive offer.
In the UK, an auction process was instituted in 2015.
“One of the things offshore wind projects need to move forward is the certainty that the revenue will be there to pay back the cost of building the projects,” said Erin Coldham, Chief Development Officer for Star of the South, one of Gippsland’s most advanced offshore projects.
To get that certainty, the Victorian Government is planning to set a guaranteed price companies will receive for the sale of electricity - enough to power 1.6 million average Australian homes.
This auction will set the price for the first 2GW of Gippsland Offshore Wind Zones expected 7GW.
“From a government point of view, it means energy security,” Coldham said.
The developers that win the auction will receive a financial support package from the Commonwealth designed to give investors enough certainty to commit to funding construction.
Winning the auction doesn't mean a developer automatically gets permission to build turbines, as they will still need federal and Victorian approvals.
Cover image credit: Flying Focus/CrossWind.