Victorian Leader to Appeal Federal Labor Decision to Axe Offshore Wind Farm Project

The project was rejected by the federal minister over environmental concerns.

A wind turbine generates electricity at the Block Island Wind Farm—the first commercial offshore wind farm in the United States—near Block Island, R.I., on July 7, 2022. John Moore/Getty Images

Victorian Premier Jacinta Allan has expressed strong dissatisfaction with the federal Labor government’s decision to veto Australia’s first offshore wind farm.

It comes as the state aggressively speeds up its transition to net zero following the introduction of the state’s climate change strategy in 2022.

On Jan. 8, federal Environment Minister Tanya Plibersek rejected a proposal to build offshore wind turbines at the Port of Hastings, which was launched by former Victorian Labor Premier Daniel Andrews in March 2023.

The ruling indicated that the project posed “clearly unacceptable” risks to the surrounding wetlands.

“The project was deemed clearly unacceptable under national environment law and cannot proceed,” a spokesperson for the Department of Climate Change, Energy, the Environment and Water said in a comment obtained by AAP.

According to the Victorian government, the wind hub could produce at least two gigawatts of electricity by 2032, with plans to raise the generation capacity to four gigawatts by 2035 and nine gigawatts by 2040.

Mr. Andrews touted the project as powering millions of homes in the state while creating thousands of jobs.

During a press conference, current Premier Ms. Allan expressed her disappointment with the federal government’s decision.

“I think it’s pretty fair to say we’re not particularly happy with this decision, particularly when it comes in an environment where we’re really proud to be leading the nation on establishing offshore wind.” Ms. Allan said, as reported by The Australian newspaper.

The premier also said her government needed time to consider the ruling and communicate with the federal government.

“We have very strong renewable energy targets, and we have them for a reason. We have them because we need to make this transition to provide energy security through renewable energy sources, and offshore wind is a big and important part of that,” she said.

“[Federal Energy Minister] Chris Bowen recognises this, we recognise this in Victoria, which is why there’s been a huge amount of work put into supporting and developing the offshore wind industry here in Victoria, and we’ll be having some further follow-up with the federal government on this matter.”

Government’s Defence

Treasurer Jim Chalmers defended Ms. Plibersek’s decision while emphasising that the federal Labor government was a “big supporter” of renewable energy.

“Whether it’s Tanya Plibersek or environment ministers before her, they weigh up the facts, they weigh up the relevant laws and regulations, and they come to the best decision that they can,” he told Sky News.

“This doesn’t mean we’re not committed to renewable energy and to offshore wind. We just want to make sure that we can do that consistent with all of our other obligations, including our responsibilities to the environment.”

The Victorian National Parks Association supported the government’s ruling, saying it helped protect native endangered wildlife from “risky developments.”

“This project risked an internationally protected wetland and bird sanctuary critical for 65 percent of Victoria’s threatened bird species,” nature campaigner Shannon Hurley said in comments obtained by AAP.

Meanwhile, Victorian opposition energy spokesman David Davis warned that the state’s residents could be hit with higher energy prices in the coming period.

The MP pointed out that 11 renewable energy projects had been delayed by over six months and that the ruling would exacerbate the energy shortages in the state.

“This is a debacle, and Victoria’s offshore wind policy is now in tatters–meaning higher energy prices for Victorians at a time they can least afford it,” he said.