In 2022, Danish company Copenhagen Energy announced plans for a 3GW offshore wind farm near Australia’s west coast, the largest project of its kind in the country.
The proposal includes the installation of 200 turbines and related offshore substation platforms in the Geographic Bay, about 130 kilometers from Perth. Copenhagen Energy said that once it operates, the site produces up to 11 tons per year, which is half the state’s main grid (Southwest interconnection system).
Leeuwin Offshore Wind Wind Farm appears to be a key step towards achieving Australia’s ambitious renewable energy targets – 52% renewable electricity by 2030 and net zero emissions by 2050.
Fast forward to the beginning of the year, and the project has been put on hold, largely due to ongoing opposition from local communities and governments.
The Geo Bay project highlights the obstacles Australia must overcome to fully embrace the sea winds and serves as a cautionary tale of similar initiatives around the world.
The project’s consultation is open to the public and despite some supporters, tensions on the project are significant.
Key concerns include the costs and risks to the local environment and “lifestyle”, and the popularity of fishing and diving is a tourist attraction and job opportunities for locals.
The proposed area spans 7,674 km and is nearly 20 km from the shore, with some highlighting the possibility of encroaching marine life and reducing locals’ access to the water.
Proposed and final declaration near the coastline of the Bunbury Offshore Wind area. Credits: Climate change, energy, environment and water.
“The potential impacts of offshore energy projects include displacement of fishing, habitat loss, hydrological changes that affect fish feeding, reproduction and migration, and visual and chemical pollution,” said Leyland Campbell, operations manager for local fishery Body Refishwest.
“While these are important, the biggest concern remains the access restrictions related to offshore wind energy development,” he added.
The project was also met with opposition from opposition government officials, who declared the project elected.
Australian opposition leader Peter Dutton said offshore winds in Geographic Bay were “not in the best interests of the environment, not in the best interests of the economy, not in the best interests of the region”, while liberal candidate Ben Small posted the project’s consultation period “fake”.
The project was quietly shelved and the site remains open as a potential renewable hub.
The incident has joined the growing catalogue of offshore wind initiatives, which has been shelved due to environmental impetus and regulatory delays. In offshore winds, this is a key part of Labor’s clean energy program, and these issues are increasingly needed to be overcome if offshore winds gain momentum.
Australia’s huge coastline and strong winds make it a major candidate for developing offshore wind, and the Global Wind Energy Commission estimates that the country has the potential to generate up to 5tw of power from offshore wind energy every year.
The government has explicitly supported the industry, allocating $40 billion ($26.7 billion) for renewable development in the 2023-24 federal budget.
Despite this potential, Australia is still working to set off offshore wind projects. according to Electricity TechnologyGlobalData, the country’s parent company, has 43 large-scale offshore wind projects, but has not been operated or even close to completion.
Several planned projects in the country have been suspended or abandoned. In January 2023, Ocean Energy announced that it would stop the development of offshore projects on the West Coast due to repeated delays and setbacks during the approval process. Meanwhile, German developer Skyborn Renewables completely withdrew from Australia in a proposed offshore wind project in South Australia, and was denied in November 2023 for fear of potential harm to the marine life and fishing industries.
Attaurrahman Ojindaram Saibasan, power analyst at GlobalData, said project costs, labor shortages and environmental issues are the main issues in the approval process.
“The large amount of initial capital investment required to develop a wind farm is a major obstacle, especially for smaller developers,” he said. “Securing financing is challenging due to risks like regulatory changes and market volatility.
“In addition, there are not enough skilled workers in the country to maintain turbine maintenance and not enough nautical engineering expertise.”
However, the main obstacle is Australia’s regulatory landscape.
Tony Wood, director of energy programs at Grattan Institute, told Electricity Technology The lack of cohesion between Australia and the federal government has led to the “messy consequences” of renewable projects.
“The nature of Australia’s federal system means offshore wind projects must comply with state and federal regulatory requirements, which have actually only made progress in the past few years,” he said. “Many companies coming to Australia do not expect this challenge.”
Among community groups, calls for clearer guidance on renewable projects have been responded to. For example, the Western Australia Local Government Association issued a statement asking the state to develop clearer guidelines to incorporate community engagement, which reflects “strong and ongoing” feedback from local governments.
“project [are] The organization said. “The organization said. There is no coordinated approach to integrating these investments into existing communities and industries, allowing local governments and their communities to “reshape the steering wheel” to achieve the best results.”
Similarly, Sebasan said a strong policy of strict timelines is needed to meet Australia’s renewable energy goals, including a transparent licensing process and a comprehensive environmental impact assessment.
“The clear regulations and fair costs must be set to integrate offshore wind into the grid while enhancing the grid to promote a smooth integration of offshore wind facilities,” he explained.
Looking at the UK, an early offshore windmill innovator, government intervention has been playing a role in overcoming barriers to investment and public acceptance.
“Stable, predictable government support is crucial for offshore wind development,” Frankie Mayo, senior energy and climate analyst at Think Tank Ember, told 1988. Electricity Technology.
He noted that the 2016 differential contract (CFD) scheme was a major success.
“The CFD plan will hold an annual auction where developers bid for a 15-year contract to guarantee a certain electricity price for their projects,” he said. “By reducing the price risks faced by developers, the program has supported 9.1GW of offshore winds to date and has awarded the contract to the 15GW currently under construction.”
In Australia, clearer government approaches can enhance similar confidence, make the road to approval and increasing public acceptance.
Mayo said that they “can never completely eliminate” the local opposition and environmental issues “like the impact of the ocean”. However, he noted: “In the UK, awareness of the importance of decarbonized energy translates into overall positive support for offshore winds”, suggesting that communities are more likely to put local concerns aside when government clear signals emphasize greater interests.
From a global perspective, this is a critical moment for large-scale adoption of offshore winds.
The industry has experienced rapid expansion in recent years, with major technological advancements reducing costs and increasing accessibility. Indeed, the International Energy Agency estimates that costs may drop by as much as 40% by 2030.
Environmental mitigation work is also developing rapidly.
With countries in the UK and multiple European regions leading offshore wind energy development, best practices have now been established to minimize environmental risks and protect marine ecosystems. In 2023, the Inshore Energy and Nature Alliance identified 80 measures to minimize the impact of offshore wind on marine life, thus providing a roadmap for responsible development.
Meanwhile, Australia’s regional neighbors – China, Japan and South Korea – are rapidly expanding offshore winds to achieve clean energy targets. Ember’s estimates suggest that China will account for half of the global offshore wind power by 2030, while Japan and South Korea will target 10GW and 12GW of offshore wind by 2030, respectively.
This growing momentum underscores the urgency of Australia to accelerate its offshore wind energy or risk lag. In this case, the Geographic Bay Project is a clear example of clear challenges and opportunities.
Overcoming regulatory bottlenecks and promoting cooperation between government agencies and attracting local communities is essential to unlocking offshore wind energy in Australia.
With the right policies and commitment to long-term investment, Australia has the opportunity to become a global leader in offshore winds – ensuring its status in the future of renewable futures, providing clean, reliable energy.
“Make Australian offshore winds a reality” was originally created and published by GlobalData-owned brand Power Technology.
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