Offshore wind in Australia will enter a new research and demonstration phase, which the Member for Cunningham has welcomed, hailing it as "a big green light" for investors.
"I firmly believe that the Illawarra has a big role to play in the future of clean technology – not just locally and nationally, but globally as well," Alison Byrnes MP said yesterday.
"That's why I am really pleased that the Albanese Labor Government is backing the emerging floating offshore renewable industry with the release of the research and demonstration licence guidelines for public consultation.”
The new phase was announced last Friday as news broke that progress in both NSW offshore wind zones has stalled. The Illawarra zone has been in a lull since BlueFloat Energy, the only applicant for a feasibility licence, announced its withdrawal from offshore wind internationally. Now Norway’s Equinor – which had partnered with Australia’s Oceanex Energy to form the Novocastrian Wind company – has decided not to accept a feasibility licence for the Newcastle zone.
To test the emerging offshore wind technology in Australian waters, the government's new research and demonstration licences will last for 10 years, apply to all of Australia’s six declared Offshore Wind Zones and be assessed on “appropriateness”. Projects will require community consultation.
"These licences provide the opportunity for the development and testing of offshore renewable energy technology in the Illawarra offshore wind zone, helping to show that floating offshore wind can work in our waters,” Ms Byrnes said.
“They will act as a big green light for attracting investment to our shores.
"The Illawarra already has the fantastic renewables research being undertaken by the University of Wollongong, and this is yet another opportunity for our region to be at the forefront of this emerging technology – creating the clean jobs we need for the future.
"We truly are the City of Innovation and I look forward to seeing what the future holds for our community in this space.”
As a first step, the Department of Climate Change, Energy, the Environment and Water (DCCEEW) has opened public consultation for feedback on the Draft Research and Demonstration Licence Guideline.
This consultation covers only licence application guidelines. “We are not seeking feedback on other chapters of the guideline, on the broader Offshore Electricity Infrastructure framework, or more general feedback on offshore renewable energy in Australia,” says DCCEEW.
In its August 22 media release, DCCEEW said future research might involve “using monitoring equipment such as special buoys” or demonstration projects “to investigate viability of new technology before applying for a feasibility licence to progress to a full commercial project”.
“For example, developing floating wind turbine technology will help unlock a combined 8 GW of renewable energy capacity in the Hunter and Illawarra offshore areas.”
In a radio interview last Friday with ABC Newcastle’s Paul Culliver, the Minister for Climate Change and Energy, Chris Bowen, said: “Offshore wind is facing some global international investment headwinds right at the moment, partly driven by some uncertainty out of the United States. So, we are caught up in that.”
Mr Bowen told the ABC that launching the offshore wind industry in Australia was going to be “slower and harder” than hoped.
Renewables advocates continue to support offshore wind as its high capacity factor makes it a viable alternative to coal-fired power plants. Opponents have criticised it as expensive and unproven technology.
Feedback on the Government’s licence application guidelines is open from August 22 to October 3. For more information, go to DCCEEW's website.
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