What’s the alternative? Gippsland offshore wind companies warn political uncertainty puts industry at risk
“Not taking this opportunity would deprive Victoria ... of a lot of private investment over a long period of time.”
Jacob Wallace
August 10, 2026
Latrobe Valley communities have been preparing for an offshore wind industry in Gippsland for more than seven years. But two Gippsland companies are concerned about what may happen if Labor loses power at the November state election.
What happened: Gippsland’s Offshore Wind Zone has been ticking along since it was announced in 2022.
Ports are being prepared to ship out 250-metre-tall turbines into the Bass Strait. South Gippsland and Wellington Shire councils are working on a plan to build infrastructure for the influx of workers and TAFE Gippsland is opening a new training facility to help prepare the workforce.
“One of the challenges for us is that there really isn't a clear alternative policy,” Project Director of Blue Mackerel Offshore Wind, David Ghaly, told the Monitor.
“We need certainty in terms of a route to market if we're going to realise these projects and be able to continue to spend the money that it takes to develop them.”
Blue Mackerel is one of Gippsland’s nine proposed offshore wind projects. The company plans to build 60 to 70 turbines 10km from the shore between Seaspray and Woodside Beach.
The project is expected to deliver 1GW of electricity - enough to power 750,000 average Australian households, according to Blue Mackerel.
Ghaly said the lack of bipartisan support and uncertainty was challenging for companies investing in Gippsland offshore wind projects.
“All these companies wouldn't be here if the resources and the fundamentals were not fantastic. Not taking this opportunity would deprive Victoria, and especially Gippsland, of a lot of private investment over a long period of time.”
Erin Coldham, Chief Development Officer for Gippsland offshore wind developer Star of the South, told the Monitor the company believes there will still be support for offshore wind after the election.
“For now, we’re focused on the next steps because there is a level of urgency around getting projects ready before coal-fired power stations are retired,” Coldham said.
Star of the South plans to build 147 turbines 10-40km off the coast between Port Albert and Woodside Beach. The project is expected to deliver 2.2GW of electricity - enough to power 1.2 million average Australian households, according to Star of the South.
What are the party policies?
Coalition: The Victorian Liberal and National coalition has not opposed the offshore wind sector in Gippsland, however it has signalled it will stop a similar project, the Southern Ocean Zone, off south-west Victoria.
The Victorian Coalition does not have renewable energy or offshore wind targets. It opposes Labor’s renewable energy strategy and says it wants to focus on “solar and battery installations on commercial and industrial rooftops in urban areas”.
Labor: The Victorian Labor government has legislated targets for offshore wind generation to help reach the state’s goal of 65 percent renewable electricity generation by 2030.
The Labor government will conduct Victoria’s first offshore wind auction this month, locking in an agreement between the state and offshore wind developers for 2GW of electricity generation.
The auction is a milestone in the development of Gippsland’s offshore wind industry.
One Nation: The Victorian One Nation branch has not announced any specific state policies, but the federal party policy on the sector is to ban offshore wind installations.
Greens: The Victorian Greens supports offshore wind in Victoria.