Victoria has officially opened its first offshore wind auction, marking a milestone in Australia's renewable energy transition as the state seeks to fill the gap left by retiring coal-fired generators and drive electricity prices lower.

Auction Opens for First Two Gigawatts

Minister for Energy and Resources Jaclyn Symes opened the Request for Proposal process on Wednesday, 26 August 2026, inviting projects to bid for contracts covering Victoria's first two gigawatts of offshore wind capacity. The state government says this volume of generation will be sufficient to power approximately 1.5 million homes each year.

Projects submitting bids will be assessed against criteria covering value for money, deliverability, and the benefits they offer to local workers, businesses and communities.

The auction process will close in August 2027, with contracts expected to be awarded in 2028. Following contract award, successful projects are intended to progress through investment, construction, and operation phases.

Pathway to Nine Gigawatt Target

The contracts awarded through the auction are expected to be integrated into the national Electricity Services Entry Mechanism, known as ESEM. The state government has described this as providing a pathway toward Victoria's broader target of nine gigawatts of offshore wind capacity.

Symes described the launch as a significant step in the state's energy transition. "This auction is a giant leap towards getting Australia's first offshore wind projects built, attracting billions in investment, creating thousands of jobs and delivering the reliable power we need as coal retires," she said.

The government has pointed to Victoria's offshore wind resources as a key competitive advantage. "Victoria has some of the best offshore wind resources in the world. This auction is about harnessing that advantage and building the next generation of energy right here in Victoria," Symes said.

Complementing an Expanding Renewable Mix

According to the state government, offshore wind is intended to complement Victoria's existing and growing portfolio of solar, onshore wind and storage infrastructure. The rationale put forward is that adding large volumes of new renewable generation will help maintain grid reliability as the state's ageing coal-fired power stations continue to retire.

Renewables currently account for 45 percent of Victoria's total electricity generation, the government stated. The addition of offshore wind is framed as an extension of this trajectory rather than a standalone development.

The government also said Victoria's ongoing investment in renewables has already delivered the lowest wholesale power prices in the country, and that further additions of renewable capacity will continue to put downward pressure on electricity bills for households.

Gippsland at the Centre of Development

The state government made specific reference to Gippsland as the expected hub of offshore wind activity, noting that successful projects will ensure the region "continues its proud history as an energy powerhouse."

Gippsland has historically been central to Victoria's coal-based energy industry, and the government has positioned offshore wind as its successor industry in the region.

The broader energy transition plan outlined by the government projects the creation of 68,000 jobs in Victoria by 2040, with 37 percent of those positions flowing into regional areas.

The offshore wind program is presented as a significant contributor to that employment outlook, with the minister citing thousands of new jobs as a direct outcome of the auction process.

Political Context

Symes used the auction announcement to draw a contrast with the state opposition, criticising what she described as a lack of a credible alternative energy plan.

"Jess Wilson's One Nation-Liberal Coalition wants to rip up energy projects without a real plan to keep the lights on, while we're getting on with building the energy Victoria needs for the future," she said.

The minister did not elaborate further on the opposition's specific policy positions in the statement accompanying the auction launch.

What Comes Next

With the Request for Proposal process now live, developers and project proponents have until August 2027 to submit bids. The government has indicated that the assessment process will weigh economic value alongside local industry and community benefit criteria before contracts are awarded the following year.

Further information on the auction process has been directed to the state government's energy website at energy.vic.gov.au/renewable-energy/offshore-wind-energy.

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