AGL Energy Abandons Gippsland Skies Offshore Wind Project

A third offshore wind initiative in Australia’s Gippsland offshore wind zone has been cancelled, with AGL Energy the latest to withdraw.

Based on coverage from several Australian media sources, the company announced it would halt its 2.5GW Gippsland Skies offshore wind development.

The initiative was among 11 projects in the Gippsland zone that received a feasibility license from the national government.

Moving forward, AGL will discontinue the proposal and concentrate on alternative projects, including onshore wind, batteries, pumped hydro, and gas firming projects.

The choice to cancel the project, which was in its preliminary feasibility phase, was shaped by the deteriorating conditions globally in the offshore wind industry.

Gippsland Skies now represents the third Gippsland offshore wind development to be scrapped this year. In October, German utility RWE cancelled its 2GW Kent offshore wind farm while BlueFloat Energy withdrew its $10bn Gippsland Dawn project, despite receiving major project status from the federal government.

The Victorian government has established a goal to generate at least 2GW from offshore wind by 2032. Nevertheless, a report from the state’s auditor general in parliament indicated that achieving such a target would be highly unlikely.