Call for offshore wind farm deals to contain buffers against inflationary shocks – Business News (Trending Perfect)

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“There have been a lot of problems happening in the United States regarding the cancellation of some projects, because the period from the signing of contracts to the time the projects are built is very long, which has led to higher costs due to inflation,” Quan said.

“Governments have come up with policies that give us confidence that there is a market.”

Albert Cowan, Head of Market Development at Orsted in Australia

“That was our consistent message to the Victorian Government, and to their credit, they really listened to the industry and worked closely with everyone.”

Victoria's world-class wind resources, coupled with the state government's aggressive target of two gigawatts of offshore wind by 2032 and nine gigawatts by 2040, have given companies like Ørsted and other global players the confidence to invest.

“Governments have come up with policies that give us confidence that there is a market, and that's why we're here,” Quan said.

“We are confident [challenges] “These are things we can solve – we believe the government is moving in the right direction.”

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A Victorian state government spokesperson said on Sunday the government was learning from global leaders in the sector “to ensure we get the design of our auction process right”.

Expressions of interest for the first tranche of offshore wind projects will begin later this year, before final contracts are awarded later in 2026.

Offshore wind — an energy source that can deliver power more consistently and reliably than onshore wind farms — has received strong support from state and federal governments and investors as a way to help offset the impending closure of the majority of coal-fired power plants. Power plants along the East Coast over the next decade.

The federal government this month granted Orsted an immediate feasibility license for the first of its proposed projects off Gippsland. Other successful applicants include consortiums including Australian energy company AGL, investment giant Macquarie and French firm Engie.

The government has indicated it also intends to grant a permit for a second Ørsted project in an adjacent permit area, subject to First Nations consultations.

As part of Ørsted's “cluster” vision for Gippsland, the company proposes to develop two wind farms 50 to 100 kilometers off Gippsland with a combined capacity of 4.8 gigawatts.

Victoria's Gippsland region is home to the Latrobe Valley, home to the state's three remaining coal-fired generators.

According to Ørsted, the two projects could generate up to 6,000 job opportunities during the initial development and construction phases in the region, and another 420 ongoing job opportunities during the 30-year operational phase.

Victorian Energy Minister Lily D'Ambrosio said the government was proud to pave the way for the country's first offshore wind farms which would harness the state's world-class offshore wind resources while supporting thousands of jobs in the Gippsland region and across the supply chain.

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