THE FEDERAL GOVERNMENT has declared a new offshore wind zone in Bass Strait, this time in waters off northern Tasmania.

Climate change and energy minister Chris Bowen said feedback from local leaders, industry, fishers, unions, First Nations people and community groups had resulted in the new zone being smaller and further from shore than originally proposed.

It now sits at least 30 km off Tasmania’s north coast and spans 7,100 km2 – reduced by about 30% of the original proposal. It also includes a carve-out for a shipping lane. 

“Tasmania is already an energy powerhouse – running on 100% renewables – but the power of offshore wind could see the state produce and export even more clean and reliable energy,” Mr Bowen said.  “The Bass Strait has truly world-class wind resources, with sustained wind speeds of more than 8 metres per second.”

The federal government says the new industry could create up to 12,000 jobs in construction and a further 6,000 ongoing roles for engineers, electrical technicians, cable installers, boilermakers, crane operators, riggers, divers, seafarers, dockworkers and administrators. 

The zone could support up to 20 GW of round-the-clock reliable renewable energy – more than half of the current electricity demand across southeast Australia. One rotation of a single offshore wind turbine generates as much energy as an average rooftop solar installation does in a day, the Minister said.

In establishing Tasmania’s offshore wind industry, there is also an opportunity to future proof existing industries like steel, cement and advanced componentry, boosting Australian supply chains and local economies, he said. 

The Commonwealth will require project proponents to demonstrate their commitment to Australian manufactured inputs, local suppliers and benefits to the local economy, to inform the merits of feasibility licence applications. 

Offshore wind developers can apply for feasibility licences now until 12 March 2025, which allow them to assess the feasibility of offshore wind projects in the declared Bass Strait zone.  Feasibility licences will only be awarded to developers that prove their project will deliver the most for Tasmania, its workforce and for Australia’s energy security. Developers must also adhere to stringent requirements for environmental stewardship and community involvement and commit to sharing the marine space with existing users. 

The declaration was welcomed by Tasmania’s Minister for Energy and Renewables Nick Duigan, who said an offshore wind industry could help the state maximise its potential as a green energy powerhouse: “This zone will give proponents and investors confidence to progress Tasmanian projects.”

Earlier this week the Victorian Government announced the expression of interest for a company to build the transmission necessary to connect Gippsland’s new offshore wind farms to the grid. 

Through this process, VicGrid will select the best private sector organisations to help it design, build, finance, operate and maintain the onshore transmission infrastructure.  Construction is expected to commence in late 2027 and the infrastructure will begin operating in 2030.

The transmission to support offshore wind is subject to an Environmental Effects Statement process, which is now underway and involves a thorough investigation of the potential environmental impacts of the project, including social, agricultural and economic aspects.