State of Victoria to launch RfP for 2 GW of offshore wind in late 2025

Minister for Energy and Resources Lily D’Ambrosio has released Offshore Wind Energy Implementation Statement 4 (IS4), updating industry on the next steps towards building 2 GW of offshore wind capacity in Victorian waters.

To start the auction process, a confidential Registration of Interest (ROI) process has been initiated with offshore wind feasibility licence holders. The ROI process closes in May 2025 and will inform a Request for Proposal (RfP) stage later in 2025.

Feasibility licence holders are eligible to participate in the ROI and Gippsland licence holders are expected to connect to the VicGrid connection hub location near Giffard; VicGrid has focused on developing a single hub for the first tranche of offshore wind in Gippsland, with longer-term planning underway.

Developers will be supported through a Contract for Difference (CfD) support scheme and availability payment. The CfD will provide investment certainty for potential developers; the availability payment will only be made once infrastructure is generating electricity, providing energy security. Feedback received from ROI participants will inform the finalisation of auction design and support package contract terms, subject to government decisionmaking, ahead of the RFP opening in Q3 2025.

The Minister said the Victorian government will launch the RfP stage in September 2025, with contracts to be awarded by October 2026. She said the industry “will work towards a minimum local content requirement of 80% in the operations and maintenance phase, from 2032 onwards, of the first tranche of projects. During this period 10% of all labour hours will be worked by apprentices, trainees and cadets.

To ensure Victoria has the pipeline of workers needed to support the energy transition, the state government will soon open grant applications for up to A$4.9M (US$3.1M) to run a Wind Worker Training Centre.

The Minister said IS4 will “give industry the certainty it needs to invest and help us start building the renewable energy Victoria needs to push down energy bills.”

She said Victoria’s offshore wind industry will provide jobs and career pathways for thousands of workers and boost local businesses through manufacturing and supply chain development.