Australia Grants Three Feasibility Licenses for 4 GW of Offshore Wind in Western Australia

Australian Minister for Climate Change and Energy Chris Bowen announced the awarding of final feasibility licenses to three offshore wind projects in the Bunbury zone, Western Australia. Bunbury Offshore Wind received license offers for two projects, while Westward Wind obtains a license for a third project in the same area. Acceptance of these offers would allow proponents to commence detailed investigations and consultations under the established regulatory framework.

A 4 GW Capacity for the Southwest Grid

According to data released by the ministry, these three projects could generate approximately 4 GW of renewable electricity destined for the South West Interconnected System (SWIS), Western Australia’s main electricity grid. The Albanese government presents offshore wind as a complementary energy source to onshore installations, capable of producing during nighttime hours thanks to consistent coastal winds. According to Assistant Minister Josh Wilson, renewables accounted for 56 percent of SWIS electricity generation last November.

The Australian executive emphasizes that offshore wind development occurs within a context of gradual coal phase-out in Western Australia. The southwest region historically constitutes the powerhouse of the state’s electricity supply. Authorities indicate these projects would create construction and maintenance jobs within local supply chains and regional ports.

Opening of Research and Development Licenses

Alongside these awards, Minister Bowen opened applications for research and development (R&D) licenses across all six Australian offshore wind zones. These licenses would authorize trials and testing of offshore renewable technologies in the country’s territorial waters. According to the ministry, this framework aims to attract domestic and international developers, universities, and research cooperatives to develop new technological advances.

However, the government will not grant feasibility licenses in the Illawarra zone, as no application could be progressed to license award. BlueFloat, one of the prospective proponents, withdrew its application as part of a global scaling back of its offshore wind operations. A preliminary decision also excludes license awards in Bass Strait due to lack of competitive bids. These withdrawals illustrate the challenges facing offshore wind development in Australia, despite the ambitions expressed by public authorities.