State of Victoria funds studies for country’s first offshore wind terminal

To prepare for the development of offshore windfarms in its waters, A$124.5M has been included in the Victorian Budget for 2026/27, in order to progress activities for the Victorian Renewable Energy Terminal at the Port of Hastings.

The terminal would be located at the 25-hectare Old Tyabb Reclamation Area (OTRA) at the Port of Hastings. The site is within the existing port precinct between Esso’s Long Island Point jetty and the BlueScope Steel wharves. 

As a potential assembly port, Port of Hastings benefits from large areas of appropriately zoned land close to deep water channels and proximity to proposed offshore windfarms off the Gippsland and Southern Ocean region coasts.

The funding will progress the environmental effects statement (EES) process for what would be the first heavy-duty port of its kind in Australia. This would allow companies to use the facility to assemble turbines before transporting them offshore to install.

The Victorian Renewable Energy Terminal is going through a full EES process, including community consultation. Following planning approvals and environmental assessments, works can then proceed.

The state says harnessing offshore wind resources in the Gippsland area offs its coast “has the potential to keep pushing prices down as our old coal fire power stations close” and “make sure Gippsland remains the powerhouse of Victoria’s energy production for decades to come.”

An auction for the first 2 GW of Victorian offshore wind will open in August 2026. t its peak, the offshore industry is expected to create over 2,370 jobs and generate billions in investment.

Minister for Energy and Resources Lily D’Ambrosio said, “Only Labor will build the offshore wind energy Victoria needs to power our homes and lower energy bills. Labor is investing in renewable energy.”

Minister for Ports and Freight Melissa Horne said, “We are investing in the technical and environmental assessments at the Port of Hastings to ensure that we are protecting the Ramsar listed wetlands and have ensured that we are on the best footing to successfully meet the ESS statement criteria.”

The port describes the EES process as a ‘thorough and rigorous that involves multiple stages’ and includes the establishment of a Technical Reference Group (TRG) by the Department of Transport and Planning to oversee the process. The EES process allows for environmental assessment and technical review by the TRG of the Terminal design and impacts. TRG membership includes government agencies, municipal councils and Registered Aboriginal Parties that have a statutory, policy or technical interest in the terminal project.