Establishing offshore wind

 

Australia has many areas that may be suitable for offshore wind.

We regulate offshore wind and other offshore renewable energy technologies in Commonwealth waters under the Offshore Electricity Infrastructure Act 2021 (OEI Act) and the Offshore Electricity Infrastructure Regulations 2022. See the associated Regulatory Levies Act, Regulatory Levies Regulations and Consequential Amendments Act.

Commonwealth waters start 3 nautical miles from the coastline and extend to the boundary of Australia’s exclusive economic zone.

The OEI Act enables the construction, operation and decommissioning of offshore wind farms. They outline how and where offshore wind projects can operate.

Projects regulated under the OEI Act include:

  • offshore wind and solar farms
  • wave energy plants
  • undersea electricity interconnectors.

Enabling the offshore wind industry supports the Australian Government’s aim to:

  • reduce emissions from the electricity sector
  • increase affordable electricity supply
  • create jobs.

Declaring suitable areas

Declaring suitable areas for offshore wind is a ministerial decision. Our department advises the Minister for Climate Change and Energy on suitable areas in consultation with:

  • other Australian Government departments and agencies
  • state and territory governments
  • industry stakeholders
  • local communities
  • the Australian public.

Considering a specific area for declaration requires a 60-day public consultation process. It will take into account factors including impacts on existing marine users.

Declared areas

Gippsland, Victoria

The Minister declared an area in the Bass Strait off Gippsland as suitable for offshore wind energy on 19 December 2022. The instrument giving effect to the declaration, the Offshore Electricity Infrastructure (Declared Area OEI-01-2022) Declaration 2022, is available on the Federal Register of Legislation.

Following the declaration of this area on 19 December 2022, the Minister committed to further consideration of the area west of Wilsons Promontory. On 31 August 2023, after additional consideration and consultation with the Victorian Government, the Minister concluded that there were unacceptable environmental risks to progressing with offshore wind in this region. The Minister confirmed that the region west of Wilsons Promontory would not be considered further for declaration.

This decision does not alter the current Gippsland declared area.

Hunter, New South Wales

The Minister declared an area in the Pacific Ocean off the Hunter as suitable for offshore wind energy on 12 July 2023. The instrument giving effect to the declaration, the Offshore Electricity Infrastructure (Declared Area OEI-01-2023) Declaration 2023, is available on the Federal Register of Legislation.

Notice of proposal to declare an area in the Southern Ocean region

The Minister has proposed an area in Commonwealth waters in the Southern Ocean, extending offshore from Warrnambool, Victoria to Port MacDonnell, South Australia, for offshore renewable energy projects. See the:

Consultation on this proposal closed on 31 August 2023. More information about the proposal, and access to an interactive map on the proposed area, can be found on the have your say portal.

Notice of proposal to declare an area in the Illawarra

The Minister has proposed an area in Commonwealth waters in the Pacific Ocean off the Illawarra, New South Wales, extending offshore from Wombarra to Kiama for offshore wind energy. See the:

If you have difficulty accessing these files, visit web accessibility for assistance.

Provide your feedback on the proposal by 16 October 2023 on our have your say portal. More information on the proposal, and access to an interactive map of the proposed area, can be found on the have your say portal.

Priority areas for assessment

The following two regions, have also been identified as priority areas for assessment for area declaration:

  • The Bass Strait region off Northern Tasmania
  • The Indian Ocean region off Perth/Bunbury, WA.

Details of these two regions and the public consultation processes will be announced later this year.

Licensing offshore renewable energy projects

Companies wanting to undertake offshore renewable energy infrastructure projects will need to be licensed:

  • Commercial licences allow offshore renewable energy infrastructure projects for up to 40 years.
  • Transmission and infrastructure licences permit installation and operation of undersea interconnectors to transmit electricity.
  • Research and demonstration (R&D) licences enable short-term projects (up to 10 years) to trial and test new offshore renewable energy technologies.

You will need a feasibility licence before applying for a commercial licence. Feasibility licences permit the holder to assess the feasibility of a project for up to 7 years.

You can apply for a feasibility or R&D licence in an area after the Minister declares it suitable for offshore renewable electricity infrastructure. Transmission licences do not need to be in a declared area.

The Offshore Infrastructure Registrar (the Registrar) administers licences for offshore renewable energy and transmission projects. Staff within the National Offshore Petroleum Titles Administrator (NOPTA) assist the Registrar.

Applying for a Feasibility Licence

To assist prospective licence holders and other stakeholders to understand the requirements and processes for feasibility licences, the Australian Government has developed a suite of guidance documents and approved forms. Updated versions of these documents are now available for applications to be made from 8 August 2023. 

These documents are available on the Registrar’s website: www.offshoreregistrar.gov.au

Invitation to apply for a Feasibility Licence

Hunter Declared Area

An area in the Pacific Ocean off the Hunter region of New South Wales was declared suitable for offshore wind development by the Minister for Climate Change and Energy on 12 July 2023.

The invitation to apply for feasibility licences for proposed projects within the Hunter declared area will open 8 August 2023 and close 14 November 2023.

Further information on the licence application process is available from the Offshore Infrastructure Registrar which leads assessment of all applications against criteria set out in the Offshore Electricity Infrastructure Regulations 2022, and makes recommendations to the Minister.

Gippsland Declared Area

An area in Bass Strait off the Gippsland region of Victoria was declared suitable for offshore wind development by the Minister for Climate Change and Energy on 19 December 2022.

The invitation to apply for feasibility licenses for proposed projects within the Gippsland declared area closed on 27 April 2023.

Further information on the licence application process is available from the Offshore Infrastructure Registrar which leads assessment of all applications against criteria set out in the Offshore Electricity Infrastructure Regulations 2022, and makes recommendations to the Minister.

Conducting offshore infrastructure activities

Before an offshore infrastructure activity can commence a licence holder will need to submit a management plan to the Offshore Infrastructure Regulator (the Regulator).

The Regulator sits within the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA). It oversees work health and safety, infrastructure integrity, environmental management and financial security for offshore infrastructure activities.

Management plans will detail how your offshore infrastructure activities are proposed to be carried out and plans will vary according to the licence and type of project.

Proponents will need to seek all required approvals and licences under relevant Commonwealth and State or Territory legislation before any offshore infrastructure activities can occur.

You should engage with the Regulator early in your project planning.

Environment assessments and approvals of offshore wind projects

If your project is likely to have a significant impact on the environment, you'll need to refer the action and we'll need to assess it to make sure it complies with the Environmental Protection and Biodiversity Conservation Act 1999 (EPBC Act).

You would need an approval under the EPBC Act to proceed.

We've prepared a Key Factors Guidance document to support the offshore renewable energy industry.

This will help you to identify and manage environmental impacts.

For more information read the Offshore renewables environmental approvals guide.

Cost recovery

The Offshore Electricity Infrastructure (OEI) framework operates on a full cost recovery basis through the application of fees and levies on regulated entities. Cost recovery ensures the Registrar, the Regulator and the department are appropriately resourced to regulate the new offshore industry effectively and efficiently and to administer the OEI framework.

In accordance with the Australian Government's Charging Framework a Cost Recovery Implementation Statement (CRIS) has been developed to set out the cost recovery activities for the OEI framework. It was approved by the Minister for Climate Change and Energy on 16 September 2022.

The CRIS will be subject to regular reviews to make sure the estimated costs are consistent with the actual effort over time.

Download

Cost Recovery Implementation Statement (PDF 754KB)
Cost Recovery Implementation Statement (DOCX 449KB)

If you have difficulty accessing these files, visit web accessibility for assistance.

Consulting with the public

Current consultation

We are consulting on the suitability of offshore wind in Commonwealth waters off the Illawarra region from Wombarra in the north to Kiama in the south. Provide your feedback on the proposal through the Have your say portal by 11.59pm 16 October 2023.

Previous consultations

We consulted on the suitability of Commonwealth waters in the Southern Region for offshore wind development. The consultation closed on 31 August.

We consulted on the suitability of Commonwealth waters off the Hunter, New South Wales for offshore wind development. The consultation closed on 28 April 2023.

We consulted on the suitability of Commonwealth waters off Gippsland, Victoria for offshore wind development. The consultation closed on 7 October 2022.

We consulted on offshore electricity infrastructure fees, levies and licences from 22 March to 22 April 2022.

We consulted on the proposed regulatory framework in early 2020.

Read more

Contact us

If you are interested in further details on the framework or offshore energy, email offshorerenewables@dcceew.gov.au or sign up for our newsletter 'Australian offshore wind news' using our subscription form.