Funding Setback Puts $8 Billion Victorian Offshore Wind Project in Doubt

Another slated Australian wind farm project faces challenges getting off the ground.
Funding Setback Puts $8 Billion Victorian Offshore Wind Project in Doubt
A view of Wonthaggi Wind Farm to the south-east of Melbourne in Victoria, Australia, on July 7, 2015. Quinn Rooney/Getty Images
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There are signs a planned $8 billion (US$5.3 billion) offshore wind farm pegged for Victoria’s Gippsland region could face setbacks due to government timelines for delivery.

The proposed Navigator North had been slated as a 110-turbine facility capable of powering around a million homes.

But the project appears to have hit a roadblock with operators Origin and RES confirming they would not be seeking to participate in an initial government funding round “based on the ability to meet the publicly disclosed timelines for the delivery of the first 2GW of offshore wind in 2032.”

“The ultimate decision on whether to participate will be made once final auction materials are made available,” an Origin spokesperson told The Epoch Times.

“The Origin X RES joint venture intends to continue to progress development activities on the Navigator North project, and awaits details on future auctions for the 2035 and 2040 delivery timelines for offshore wind.”

AAP reported five staffers for the project had been let go, while others have been slotted into alternative roles.

If Navigator North fails to eventually take flight, it will join the likes of several other key failed projects in Victoria in 2025.

The $6 billion, 150-turbine Flotation Energy Seadragon wind farm—also planned for the Gippsland region—failed to fly after the federal government refused an exploration licence due to clashing applications between companies.

In July, Blue Float Energy pulled out of offshore wind entirely, consequently vetoing its Gippsland Dawn project in Victoria.

Australia has designated six offshore zones for wind farms along the coasts of New South Wales, Victoria and Western Australia, though none have been built, with terrestrial turbines contributing more than 10 percent of the nation’s energy output.

Across other states, various key offshore projects have also fallen off, including the proposed Hunter Offshore Wind Farm.

Victoria’s Planning Minister Sonya Kilkenny told reporters the state’s renewables targets were still within reach.

“We'll continue to work with all stakeholders to ensure we’re delivering the transition to renewable energy,” she said.

In August, the Victorian government announced it had reached record levels of renewable energy generation.

Minister for Energy Lily D’Ambrosio said 42 percent of the state’s power was being generated by renewables.

The state is aiming to meet a target of 65 percent renewable energy generation by 2030, and 95 percent by 2035.

The challenges of states’ challenges come as as Prime Minister Anthony Albanese prepares to announce a 2035 climate target for the country.

The pledge is expected upon Albanese’s return from a state visit to the Pacific Islands, and after receiving advice from the Climate Change Authority.

The government’s current target sits at 43 percent by 2030, though some doubts exist around the achievability of this target.

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Crystal-Rose Jones
Crystal-Rose Jones
Author
Crystal-Rose Jones is a reporter based in Australia. She previously worked at News Corp for 16 years as a senior journalist and editor.