Federal Energy Minister Chris Bowen identified the Bass Strait located off Gippsland, Victoria as the first offshore wind area to be formally assessed for Australian offshore wind development projects in September 2022.
On 19 December 2022, the Minister declared the offshore Gippsland area as suitable for offshore renewable energy infrastructure. The Minister has now issued an invitation for parties to apply for feasibility licences in the Gippsland declared area until 27 April 2023.
Partner Damian Roe, Special Counsel Alison McKee and Law Clerk Erin O'Shaughnessy discuss.
What is a feasibility licence?
A feasibility licence authorises the licence holder to assess the feasibility of an offshore infrastructure project and apply for a commercial licence for the project. 1
The holder of a feasibility licence is authorised to construct, install, commission, operate, maintain and decommission offshore renewable energy infrastructure in the licence area. 2 The term for a feasibility licence is seven years. 3
Feasibility licence applications will be accepted for proposed projects within the Gippsland declared area from 23 January 2023 to 27 April 2023. Once the application period has closed the Registrar will assess all applications against criteria set out in the Offshore Electricity Infrastructure Regulations 2022, and make recommendations to the Minister. This criterion includes assessing whether the proposed project is viable and in the national interest, as well as whether the applicant is suitable and has the technical and financial capability to carry out the project. 4
Where is the Gippsland declared area?
The instrument giving effect to the declaration is the Offshore Electricity Infrastructure (Declared Area OEI-01-2022) Declaration 2022 (the Declaration). The declared area covers approximately 5,000 square kilometres and runs from offshore of Lakes Entrance in the east, to south of Wilsons Promontory in the west.
Schedule Four of the Declaration sets out a simplified map of the Gippsland declared area:
This invitation marks the next step in the Australian Government’s plan to transition towards renewable power and cleaner, cheaper, more secure energy.
We will continue to monitor developments and provide updates as the Government releases more information.
1. Offshore Electricity Infrastructure Act 2021 (Cth) s 30.
2. Offshore Electricity Infrastructure Act 2021 (Cth) s 31.
3. Offshore Electricity Infrastructure Act 2021 (Cth) s 36.
4. Offshore Electricity Infrastructure Regulations 2022 (Cth) s 26.