For decades, Australia’s wind energy story has been told on land—turbines spinning across the plains of Victoria, South Australia, and New South Wales. In August 2026, that narrative expanded to include the open ocean. Australia’s first offshore wind auction opened for proposals, marking the beginning of a new chapter in the country’s renewable energy journey. The auction, managed by the Victorian Government, seeks to deliver the first 2 gigawatts of offshore wind capacity—enough to power approximately 1.5 million homes annually. Minister for Energy and Resources Jaclyn Symes described the moment as “a giant leap towards getting Australia’s first offshore wind projects built,” attracting billions in investment and creating thousands of jobs.
Victoria possesses some of the world’s finest offshore wind resources, a fact that has not gone unnoticed by global developers. The state’s Gippsland region, with its strong and consistent winds, has been identified as the ideal location for Australia’s first offshore wind farms. The auction alone is expected to deliver a 3.1 billion Australian dollar boost to Gippsland communities. The strategic logic is compelling. As Victoria’s ageing coal-fired generators retire—the state’s renewables already account for 45 percent of total electricity generation—offshore wind offers a source of large-scale, reliable renewable power that complements the state’s growing solar and onshore wind capacity. Offshore wind’s higher capacity factors and generation patterns that often peak in the evening make it particularly valuable for grid stability.
While Victoria leads the way, Western Australia is not far behind. In January 2026, the federal government offered final feasibility licences to three offshore wind projects that could deliver approximately 4 gigawatts of renewable electricity into the South West Interconnected System. These projects, including Bunbury Offshore Wind and Westward Wind, represent a significant diversification of Western Australia’s energy mix, which has historically relied heavily on gas and coal. The Western Australian projects are at an earlier stage of development than Victoria’s, but their potential scale demonstrates that offshore wind is not a single-state phenomenon. Australia’s vast coastline—over 34,000 kilometres—offers enormous potential for offshore wind development in multiple regions. The Victorian government’s offshore wind roadmap, available at https://www.energy.vic.gov.au/, provides detailed timelines and auction information.
Australia’s offshore wind ambitions will rely on some of the most advanced turbine technology available. Modern offshore turbines, with capacities exceeding 15 megawatts per unit, can generate significantly more power than their onshore counterparts. Floating offshore wind technology, which allows turbines to be installed in deeper waters, is also being explored, with SeaTwirl signing a memorandum of understanding for a 20-megawatt floating demonstration project off the coast of Newcastle in New South Wales. However, offshore wind development in Australia faces genuine challenges. Environmental approvals, including assessments under the Environment Protection and Biodiversity Conservation Act, require careful navigation of marine ecosystems and wildlife impacts. The first offshore wind project on the west coast has already entered the EPBC queue, with concerns raised about rock lobsters and whale migration routes. Supply chain development is another critical factor. Australia currently lacks the specialised vessels, ports, and manufacturing capacity required for large-scale offshore wind construction. Building this ecosystem will take time and coordinated investment from government and industry.
Victoria has set ambitious targets: at least 2 gigawatts of offshore wind by 2032, increasing to 4 gigawatts by 2035 and 9 gigawatts by 2040. Contracts from the first auction are expected to be awarded in 2028, with the auction closing in August 2027. The success of Australia’s offshore wind industry will depend on learning from the experiences of established markets in Europe and Asia, while adapting to Australia’s unique regulatory, environmental, and logistical conditions. If the early momentum is any indication, offshore wind is poised to become a significant contributor to Australia’s renewable energy future—one that harnesses the power of the ocean alongside the sun and wind that already drive the nation’s transition.