Offshore wind developers turn attention west
A growing number of offshore wind developers are planning projects in WA as they look to capitalise on the need of the state’s heavy emitters to decarbonise.
A plethora of global offshore wind developers are vying to secure a licence to develop projects in Western Australia, as competition in the region heats up amid expectations of heightened demand from industrial customers.
Energy Minister Chris Bowen recently opened Bunbury for bids from developers.
The Australian understands Alinta Energy – Australia’s fourth-largest electricity retailer – is developing a proposal, joining a crowded field that includes Ocean Winds, Copenhagen Energy, ParkWind, Direct Infrastructure and Skyborn.
It is not clear whether Alinta is partnering with ParkWind, owned by Japan’s largest power generator, JERA, or moving forward as a solo project.
But the number of potential developers underscores the interest in the region, which had initially appeared to be a lower priority for some developers, as WA’s smaller population could limit potential demand.
However, industry sources said developers were jostling to capitalise on demand from the state’s industrial players, which are under growing pressure to decarbonise.
Many of the state’s largest emitters have pledged to cut their carbon footprint, but commitments are longer dated – often beyond 2030, when offshore wind developments are expected to be ready.
WA has set an aggressive target of having 50GW of new wind and solar capacity within the next 20 years to support its heavy industry and electrification of associated transport, and Mr Bowen said the development of offshore wind would be critical.
“We know that this part of Western Australia, this industrial powerhouse, will need more clean, green energy as investors and consumers demand decarbonisation. And we want to see more jobs created here in Bunbury, here in this part of the world,” Mr Bowen said.
Developers that wish to develop in the region have until early November to summit applications.
They are now vying for a smaller slice of the region after Mr Bowen trimmed the proposed Bunbury region to minimise the impact on fishing, after consultation with the local community.
Australia’s nascent offshore wind industry has been intensely competitive since it was initiated with a change of the law under the former Coalition government, though Labor has thrown its full support behind it.
Competition has been most intense in Victoria, which has placed offshore wind at the heart of its transition plans, and the government has hailed the level of competition as indicative of Australia’s renewable energy prospects.
Nearly three dozen applications were made to develop wind projects in Gippsland, Victoria, which were eventually whittled down to around 10.
Not all these projects – which are expected to cost billions of dollars – will materialise.
Offshore wind is more expensive than onshore wind developments and solar, which has raised concerns, but supporters insist costs are falling rapidly and Australia needs a diverse generation mix.
Offshore wind typically produces more electricity at night, in contrast to onshore wind and solar.
Victoria is particularly invested in the technology. Victoria in 2022 set a target of generating about 20 per cent of its energy needs from offshore wind within a decade. The target then doubles to 4GW by 2035 and 9GW by 2040. In all, Victoria sees potential for 13GW of offshore wind capacity by 2050, five times the current renewable generation in Victoria.
Victoria is under mounting pressure to accelerate development, with EnergyAustralia’s Yallourn coal power station now just four years away from closing.
The state Labor government insists it will hold the first offshore wind auction, which will be critical in determining the returns developers will make, in 2025 – though industry sources continue to insist this will be pushed back to early 2026.
Expressions of interest to participate in the auction are, however, expected in 2025.
Victorian Energy Minister Lily D’Ambrosio earlier this year forcefully insisted the auction would occur in 2025.
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Originally published as Offshore wind developers turn attention west
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