The Allan Labor Government is building Victoria's energy future by progressing the country's first offshore wind industry, which will deliver cheaper, more reliable power for every Victorian household and business.
Minister for Energy and Resources Lily D'Ambrosio today announced the Request for Tender (RFP) for Victoria's first offshore wind industry auction will open in August 2026 for an initial 2 gigawatts (GW) of capacity.
In December, Australia's Energy Ministers provided in-principle support for the Electricity Services Entry Mechanism (ESEM), providing a pathway for new renewable energy projects, including offshore wind, that support Victoria meeting our renewable energy targets.
Work continues with industry and the Commonwealth to finalise the design of the ESEM and Victoria's auction process to ensure a competitive and successful auction.
Victoria has some of the best offshore wind resources in the world - being able to harness this energy will further diversify and stabilise our state's power supply, helping power the state as our ageing coal-fired generators retire - keeping the lights on and continue to keep downward pressure on power bills.
Thanks to our record investment in renewable energy, Victoria consistently has the lowest wholesale electricity prices in the country. Building more new renewable energy sources adds more affordable energy to the grid and helps to lower power bills for everyone.
The offshore industry is expected to create over 6,000 jobs and generate billions in investment. Gippsland has always been critical to keeping the lights on across Victoria - and it will continue to be into the future as it hosts the country's first offshore wind projects.
As stated by Minister for Energy and Resources Lily D'Ambrosio
"We want to give industry the certainty it needs to invest and help us keep building the renewable energy Victoria needs to push down energy bills."
"We're working closely with developers on the progress of this exciting auction to ensure strong competition to secure the best projects and best value for Victorians."
"We've always said Victoria will host the country's first offshore wind industry and that's why Victoria pushed for the ESEM to accommodate technologies including offshore wind."
