The environmental assessment report for the Star of the South wind farm, which is set to be constructed off the southeast coast of Victoria, suggests that the project may take an additional five years to become fully operational. This development means that the anticipated completion date could extend to as late as 2037, which is five years beyond the original timeline.
As the most advanced offshore wind initiative in Australia, the project’s developers, Southerly Ten, have indicated that the timeline has been intentionally set with a conservative approach to accommodate any unforeseen delays.
A representative for Victoria’s Energy Minister, Lily D’Ambrosio, confirmed that the state remains committed to achieving its offshore wind energy goals. The environmental effects statement (EES) released by Southerly Ten is the first of its kind to comply with both Commonwealth and Victorian regulations.
The Star of the South project is designed for the waters of Bass Strait as part of the Gippsland offshore wind zone. According to the EES, if all necessary approvals are secured in the coming years, construction could commence around 2030, with electricity generation potentially starting by 2032. However, the full construction process could take up to seven years to reach its complete capacity.
Erin Coldham, the chief development officer at Southerly Ten, stated that the extended timeline is a precautionary measure to account for potential complications during construction. “For assessment and approval purposes, we need to be very cautious with our timelines and include some flexibility, as construction can bring about changes,” Ms. Coldham explained. She expressed confidence that the project would remain on schedule, aiming to begin construction by the end of this decade and to start producing power by 2032.
Despite these assurances, there are growing concerns that delays in establishing an offshore wind sector in Victoria could jeopardize electricity supplies as the state shifts towards renewable energy sources. The state has set legislative targets of generating 2 gigawatts of offshore wind power by 2032 and 5 gigawatts by 2035. However, a report from the Victorian Auditor-General last year indicated that the state might struggle to meet these renewable energy targets due to ongoing delays.
As the state’s aging coal-fired power plants in the Latrobe Valley are scheduled to close within the next few years—Yallourn in 2028 and AGL’s Loy Yang A in 2035—there is increasing concern about energy supply stability. Other developers in the Gippsland offshore wind zone have also withdrawn from planned offshore wind auctions, citing industry rollout delays.
Tony Wood, a senior fellow at the Grattan Institute focusing on energy and climate change, criticized the Victorian government for not adequately addressing the challenges associated with transitioning from coal power. He warned that any further delays could threaten energy security in the near term. “It’s essential to synchronize the closure of coal facilities with the introduction of renewable energy; otherwise, we risk reliability issues, which can lead to blackouts,” Mr. Wood cautioned.
He acknowledged that while delays to a specific project may not signify the end of the sector, they do cast doubt on a field that is already facing difficulties in establishing its presence.
Meanwhile, Andy Smith, the district vice-president of the Victorian Mining and Energy Union, expressed concern for workers in coal-fired power stations, indicating that uncertainties surrounding the energy transition are growing as deadlines approach. “Overall, it’s disappointing; the situation seems to be constantly shifting,” he remarked. Smith highlighted the precarious position of workers at Yallourn and their families, stressing the lack of new investments or job opportunities in the Latrobe Valley.
He emphasized the need for continued clarity from the state government regarding the anticipated electricity shortfall when Yallourn closes and the broader implications of these delays on the local economy. “We require transparency about the impact of these delays on regions like Gippsland and the Latrobe Valley, as well as assurances regarding new industries that can support workers transitioning from the Yallourn Power Station,” he stated.
A spokesperson for Energy Minister Lily D’Ambrosio reiterated that Victoria is on track to meet its offshore wind targets, highlighting that the state is at the forefront of offshore wind initiatives in Australia, with the first auction expected to commence in August.
