MULTINATIONAL energy company RWE has been granted a feasibility license from the Australian Government to develop an offshore wind farm in the Bass Strait.

According to RWE in an announcement made yesterday (17 July), the area is Australia’s first designated offshore wind zone, located 67 kilometres from the Victorian coast, near the Kent Group islands.

The approval grants the German energy company a seven-year seabed right to develop what is called the Kent Offshore Wind Farm project, with the license also allowing RWE to apply for a commercial license to build and operate the wind farm for up to 40 years.

RWE, whose Australian headquarters are in Melbourne, believes the area that has been leased has the potential to host a wind farm capable of generating two gigawatts of energy, enough to power up to 1.6 million Australian homes.

The wind farm is expected to become operational in the first half of the 2030s, subject to the planning and approvals process.

“Australia is a very attractive growth market for renewable energy,” RWE offshore wind CEO Sven Utermöhlen said.

“RWE has been active in the country for 10 years and operates one of Australia’s largest solar farms”.

“By securing exclusive seabed rights in the Bass Strait off Gippsland, we are now entering the Australian offshore wind market and will bring our more than 20 years of experience in this field. This is in line with our strategy to grow our renewables portfolio in Australia and the wider APAC region.”

RWE says it will now carry out studies to help determine the project design and to submit applications for planning permission, as well as engage with stakeholders and, at a later stage, secure an offtake agreement.

The company currently operates 19 offshore wind farms globally, with further sites currently under construction in Europe.

The group have been involved in Australia for several years, namely having constructed and currently operating the Limondale Solar Farm in New South Wales. RWE says it intends to invest approximately six billion dollars into the country by 2030, and to continue development of offshore wind, solar, and battery projects nationwide.

The news comes one month after the Department of Climate Change declared an area offshore from Illawarra to be suitable for offshore renewable energy projects.