The Albanese Government is making it easier for the emerging offshore wind sector and driving further innovation by cutting financial burdens and red tape for offshore wind development.
The former Coalition Government established the offshore wind regulatory framework on a cost-recovered basis, with Labor's support. But in the context of the global challenges facing offshore wind, fees risk becoming a barrier to investment in Australia.
To provide temporary financial relief over the next two years, the Government will seek to:
- waive annual levies applied to feasibility and research and demonstration licences
- halve annual levies applied to transmission and infrastructure licences
- reduce application fees for research and demonstration licences from $300,000 to $20,000, and
- reduce application fees for transmission and infrastructure licences from $300,000 to $150,000.
We are also easing administrative workloads with simpler financial and reporting requirements - matching reporting requirements to the nature and scale of activities being undertaken. Lower capital requirements under the new streamlined approach will also remove significant investment hurdles for offshore wind developers.
The Government will still demand best practice community engagement schemes for potential projects - striking the right balance between development and social licence.
This new industry support builds on draft guidelines released last month to encourage offshore wind research and demonstration projects.
Minister Bowen said cutting red tape would help developers focus their time and funds on projects.
"The Albanese Government is cutting fees and red tape while continuing to demand best practice community engagement for potential offshore wind projects. These cuts to fees, capital requirements and red tape make Australia a better prospect for investment and regional job creation," Minister Bowen said.
"We want to make it easier for developers to build an Australian offshore wind industry, create thousands of great long-term jobs and generate cleaner, cheaper power for millions of homes.
"We recognise that the industry currently faces economic pressures and we are acting accordingly with temporary relief."
Offshore wind projects currently in development off the coast of Australia could generate a total of 24.21 GW - enough to power nearly double Australia's total housing stock. Combined, these projects could create more than 15,000 construction jobs and 7,500 ongoing roles.
Minister Bowen has also made preliminary decisions to offer feasibility licences for projects off the coast of Bunbury, Western Australia that could add another 4 GW and employ over 2,500 workers during construction and another 1,000 ongoing jobs.
The temporary financial relief is available across the Government's six declared offshore wind zones.
