The next few months will see 37 proposals for huge wind farms off Victoria whittled down to five or six, but costs and resources remain big challenges. In recent weeks some of the world’s largest renewables developers have started to become more cautious about committing to huge offshore wind farms. Surging costs have foiled for major projects in markets much more mature for offshore wind than Australia. But none of this appears to have dampened the enthusiasm for turning Victoria’s sleeping Gippsland into the next global hotspot for the industry. Enthusiasm for what is regarded as an area with a virtually unparalleled combination of remains unabated. ”Star of the South”, also off Gippsland, is the country’s most advanced offshore wind project. Its chief executive, Charles Rattray, says rising costs are a broader issue, and emphasises the region’s ideal location for offshore wind, also “Cost pressures are impacting everyone, including energy,” he says. The CSIRO’s latest generating cost report, released this month, found costs rose by 20 per cent on average across all technologies in the year to June 30. Underpinning the opportunity are Victorian government targets for 2 gigawatts of offshore wind capacity by 2032, rising to 4 gigawatts by 2035, when the state is aiming for 95 per cent renewable energy usage. The target mounts further to 9 gigawatts by 2040. The federal government has also named four other regions around the coast as suitable for offshore wind: the Hunter region in NSW, the Illawarra region off the coast south of Sydney; the Bass Strait region off northern Tasmania; and the Indian Ocean region off Perth and Bunbury in Western Australia. But it is the 15,000 square kilometre Gippsland zone, the largest so far, that has whipped up most industry interest. The region also benefits from relatively shallow water, at up to 60 metres deep, it is still shallow enough to enable turbines to be fixed to the seabed, rather than needing to be floated, a more costly exercise. Port infrastructure is also available, as is importantly nearby access to major transmission connection points in the coal power generation hub in the Latrobe Valley. Then there is Australia’s credible regulatory framework and its macroeconomic credentials. Energy senior analyst Petra Manuel said offshore wind “might not be the top priority” in the short term, and that growth in the sector may not take off until the 2030s.  (ICE SYDNEY)

Fonte notizia: Financial Review