RWE Halts Kent Offshore Wind Project in Australia

After nearly a year of feasibility assessments, German energy company RWE has announced it will discontinue development of the Kent offshore wind project located off the Gippsland coast in Australia.

The decision follows an internal review of the project’s economic viability amid current market challenges, including persistent uncertainty over supply chain costs and the evolving structure of Australia’s upcoming offshore wind auction framework. The move also coincides with the government’s decision to delay its first offshore wind tender.

RWE confirmed that this change applies only to the Kent project, emphasizing that the company remains committed to its broader renewable energy portfolio in Australia. Its ongoing efforts include the construction of the nation’s first eight-hour battery and the advancement of several onshore wind projects totaling around 3GW, such as the Campbells Bridge wind farm in western Victoria.

“RWE remains strongly committed to Australia’s clean energy transition and to Victoria’s renewable energy future,” the company said in a statement.

The 2GW Kent offshore wind farm had been planned approximately 67 kilometers off the Australian coast and was originally scheduled to begin operations in the early 2030s.

Following the announcement, Australia’s Liberal Party criticized the state government’s handling of its offshore wind program, calling it a “complete failure.” The opposition blamed Lily D’Ambrosio, Victoria’s Minister for Climate Action, for mismanaging the initiative.

“The Labour government’s mismanagement of its offshore wind strategy has left Victorian households and industry paying higher energy prices. Investors need certainty and stability, not the chaos and poor decision-making that have defined the offshore wind development,” the statement said.