The Albanese Government has announced temporary cuts to fees and reporting requirements for offshore wind developers.
In a bid to accelerate investment in the nascent sector and reduce financial hurdles, for the next two years, feasibility and research licence holders will have their annual levies waived. Transmission and infrastructure licence levies will be halved as well.
Application fees are also being cut sharply: research and demonstration licences drop from $300,000 to $20,000, and transmission and infrastructure licences fall from $300,000 to $150,000.
The Government will also streamline administrative requirements, scaling financial and reporting obligations to project size and scope.
Officials argue the changes will free up capital and staff resources, while still requiring developers to deliver “best practice community engagement schemes” as part of their approvals process.
Energy Minister Chris Bowen said the Government is “continuing to demand best practice community engagement for potential offshore wind projects”.
“These cuts to fees, capital requirements and red tape make Australia a better prospect for investment and regional job creation,” he said.
“We want to make it easier for developers to build an Australian offshore wind industry, create thousands of great long-term jobs and generate cleaner, cheaper power for millions of homes. We recognise that the industry currently faces economic pressures and we are acting accordingly with temporary relief.”
According to government figures, offshore wind projects already in development could generate 24.21 GW of capacity, almost double the total demand of Australia’s residential housing stock.
These projects are projected to create over 15,000 construction jobs and 7,500 ongoing operational roles.
Preliminary feasibility licences under consideration in Bunbury, Western Australia could add another 4 GW, employing more than 3,500 workers during construction and operation.
The fee relief will apply across all six federally declared offshore wind zones, including Gippsland in Victoria, where the state government recently postponed its long-anticipated auction for offshore wind support contracts. The auction was due this month but will now be delayed until at least the end of the year.
Victorian Energy Minister Lily D’Ambrosio said: “As the global market for offshore wind investment changes, we’re making sure the auction is competitive and attractive and will release a new timeline for this process later this year.”
Gippsland was declared Australia’s first offshore wind zone in 2022 with a potential capacity of 25 GW. The Commonwealth has since issued 11 feasibility licences for projects in the region.