What’s Happening Down Under? A Look at Offshore Wind in Australia and New Zealand
Introduction
Across the region of Oceania, countries are beginning to consider the potential of offshore wind as they strive to meet various renewable energy goals and reduce reliance on fossil fuels. Much of the area boasts significant technical potential for offshore wind energy, although the region also benefits from excellent solar and hydro power, which is where much of their attention has focused so far.
Australia
Australia is considered one of the best countries in world for renewable energy resources, boasting high wind speeds, dependable sunlight and strong tidal currents. In fact, solar, hydro and onshore wind are now the cheapest forms of energy generation across the country.
The current sustainability aim is for 82% of the nation’s energy to come from renewables by 2030. Offshore wind could become an essential part of achieving this goal, as strong and consistent winds at sea will generate reliable power. Furthermore, offshore wind farms can be positioned closer to Australia’s larger coastal cities and industrial loads, compared to some of the onshore wind or solar alternatives, and offshore wind farms could help to power remote towns that are far from the main grid.
The Renewables Journey
Australia is well on its way to meeting its renewable energy targets using its abundance of resource options, but the focus up till now has primarily been solar, hydro and onshore wind. In 2024, 18% of the country’s total electricity generation came from solar sources – perhaps not surprising given the sunny climate and the availability of huge areas of land unsuitable for agricultural or pastoral farming. The total electricity generated by renewable sources in 2024 was 36%, a huge rise from just 9% the previous year.
It is hoped that the first Australian offshore wind farm will have turbines in the water by 2032. Unfortunately, several projects along the east coast have collapsed in recent months as investors have pulled out. This UK newsletter article looks at some of the reasons behind this ‘mass exodus’, and says, “The primary hurdles to establishing an offshore wind industry are the upfront cost of installing the technology and uncertainty over future revenue.”
The country faces a variety of obstacles to getting an offshore wind industry up and running, including high upfront costs, a lack of experienced workers, new technologies and complex regulatory processes. Currently, offshore wind is 64% more expensive than onshore, so it is understandable that Australia’s foray into the sector has been slower or more tentative.
Legislation
In 2021, the Offshore Electricity Infrastructure Act 2021 set out how and where offshore electricity infrastructure, including offshore wind, can operate. Offshore wind farm manufacturers then need to secure a licence by proving:
- the technical and financial capability of the applicant
- the likelihood the project will be viable
- the suitability of the applicant to hold a licence
- national interest
Many potential developers are calling for the planning process to be streamlined. Additional suggestions to attract investors include financial support and better mechanisms to enable projects to get off the ground – or the seabed! Many stakeholders are suggesting that a Contract-for-Difference-style approach should be adopted, such as those used in the UK and Europe.
Areas with Potential
Six regions in Australian Commonwealth Waters were identified in December 2024 as priority areas for offshore development:
- Bass Strait, Tasmania
- Gippsland, Victoria
- Hunter, New South Wales
- Southern Ocean, Victoria
- Illawarra, New South Wales
- Bunbury, Western Australia
All the designated areas have strong and consistent winds, with Tasmania being highlighted as a key location.
Victoria is currently the only state with legislated targets for offshore wind, aiming for at least 2GW by 2032 and 9GW by 2040. Feasibility licences for up to 24GW have been awarded so far. Victoria has also announced Contract for Difference contracts as well as an availability payment once the wind farm starts generating power. These contracts are scheduled to be awarded before October 2026.
Thanks to its legislative advancements, the state of Victoria boasts the most progressed offshore wind farm project in Australia. The planned 2.2GW windfarm off the Gippsland coast is known as ‘The Star of the South’. The farm will have up to 150 turbines in 586km2around 10km offshore and should be operational in the 2030s. A second project known as the Spinifex Offshore Wind Farm has also been proposed in the Southern Ocean Region. It will be interesting to see how these projects progress over the next few years.
New Zealand (Aotearoa)
Offshore Wind
Like Australia, New Zealand is still in the early stages of its offshore wind journey. Already, the country has had an incredible renewable energy journey with a hugely impressive 80% of electricity coming from renewable sources. The majority of this carbon neutral power comes from hydro and he country is now aiming for 100% of electricity to be generated by renewable sources by 2030.
To achieve this goal, the government has been actively developing regulations to support investment in the offshore wind sector. In December 2024, the draft Offshore Renewable Energy Bill was passed by Parliament and. The next stage of consultation has since been completed, and the legislation has been recommended to Cabinet. While it was initially hoped that the bill would become law in 2025, this has not yet happened. Nevertheless, in September 2025 lawmakers reaffirmed their commitment to “clear a path” for offshore wind development.
Currently, five offshore wind developers are conducting feasibility and environmental studies while at the same time engaging with local communities to address any potential concerns.
Among the projects underway is the Taranaki Offshore Wind Project, a partnership between the NZ Super Fund and Copenhagen Offshore Partners. The group is conducting feasibility studies with the goal of beginning operations by 2030. However, there are concerns that plans by Trans-Tasman Resources to extract up to 50 million tonnes of iron ore off the Taranaki coast – the contentious and much criticised industry of seabed mining – could delay this project. The proposed wind farm has a capacity of 500 MW to 1 GW. Some big names are opposing the seabed mining – this excellent article looks at the different sides of the argument.
Also in development is the Waikato Offshore Wind Project, located off the coast of the upper North Island near South Auckland. Phase 1 of the project is expected to generate 810 MW, enough to power around 40,000 homes, using 54 bottom-fixed turbines. Phase 2 will focus on floating wind technology. The site benefits from strong wind resources and proximity to existing electricity transmission infrastructure. Currently in the feasibility stage, energy generation from this project is expected to start in the mid-2030s.
Conclusion
Across Oceania, the offshore wind sector remains in its infancy, with both Australia and New Zealand still laying the groundwork through policy, feasibility studies and early-stage project development. Their neighbouring nations have yet to express strong interest in offshore wind, usually prioritising other renewable sources such as solar and hydro, which are both cheaper and easier to deploy in the near term. Small island nations – looking at high development costs, complex maritime conditions and limited grid infrastructure – would likely need to cooperate and collaborate to implement a pragmatic offshore wind strategy.
That said, the overall commitment to renewable energy is undeniable and very laudable. Both Australia and New Zealand are pursuing ambitious clean-energy strategies, harnessing abundant solar power, strong onshore winds and their significant hydro potential to reduce fossil-fuel dependence and improve energy security.
As technology costs continue to fall and investor confidence strengthens, these two countries may well pave the way for wider offshore wind adoption across the Oceanic region.