The Victorian government is being warned against using a risky funding model that would offer a taxpayer guarantee for minimum energy prices to private companies, to kickstart $100 billion in offshore wind investment which has been delayed and set back by federal interventions.

The state government is running late on the release of the next stage of its offshore wind strategy, which was dealt another blow on Friday by federal Energy Minister Chris Bowen’s decision to deny the country’s second most advanced offshore wind project, known as Seadragon, in Victoria’s Gippsland.