Victoria is set to run Australia’s first offshore wind tender in August 2026, with around 2 GW of capacity to be auctioned under a new support framework. The plan was confirmed on 27 January 2026 by Victoria’s Minister for Energy and Resources, Lily D’Ambrosio.
The auction will be held through the Electricity Services Entry Mechanism (ESEM), a scheme that Australia’s Energy Ministers endorsed in principle in December 2025. The mechanism is designed to bring forward new renewable energy capacity, including offshore wind projects that contribute to Victoria’s state targets. The Victorian Government is working with industry and the Commonwealth to finalise the ESEM design and the tender rules so that the first round is competitive and delivers value for consumers.
D’Ambrosio said the state is in close contact with developers as preparations continue, and stressed that Victoria has consistently aimed to host the country’s first offshore wind industry. She also underlined the importance of ensuring that the ESEM can accommodate technologies such as offshore wind.
The tender was originally expected to open in September last year, but was postponed. According to D’Ambrosio, the delay reflected slower-than-expected progress on feasibility licence approvals, the rejection of the first referral for the Port of Hastings, and wider uncertainty in the global offshore wind market.
Developer Southerly Ten, which is progressing the Star of the South project off the coast of Victoria, welcomed the confirmation of a new auction timetable. The company said offshore wind will be important for Australia’s energy security and its pathway to net zero, especially as about 90% of coal-fired capacity is forecast to retire by 2035.
According to Southerly Ten, Star of the South on its own could provide around 10% of the emissions reduction needed to meet Australia’s 2035 climate target. The developer has lodged environmental approval applications for the project and has purchased the land required for the shore crossing, stating that it is ready to move into the next phase once policy and tender settings are in place.
