Australian Government announces its first offshore renewable energy areas

What you need to know

• On 5 August 2022, the Federal Government announced six proposed areas in Australian Commonwealth waters for offshore renewable energy projects, to be regulated under the Offshore Electricity Infrastructure Act 2021 (Cth) (OEI Act).
• If the Minister is satisfied that a proposed area is suitable for offshore renewable energy infrastructure under the OEI Act, developers may apply for a feasibility licence to investigate the area and plan future offshore wind, solar, wave energy projects and undersea interconnectors.
• Public consultation for the first proposed area in the Bass Strait off the coast of Gippsland area is already under way, with a closing date for submissions on 7 October 2022.

What you need to do

• Consider whether your organisation wishes to make a submission to the Department of Climate Change, Energy, the Environment and Water about the possible effects of offshore renewable energy projects in the Bass Strait off the coast of Gippsland by 7 October 2022. Submissions can be made through the Department's Consultation Hub and are due by 7 October 2022.
• Continue following our Energy Alerts as we provide ongoing updates on the status of the forthcoming regulations under the OEI Act and any State-based developments supporting the new offshore electricity regime.
• Reach out to us if you have any specific questions regarding your potential project, investment or opportunity for offshore electricity. We are well across the developments in the area from a practical perspective.

Context 

As discussed in our previous alerts (linked here and here), the OEI Act implements a regulatory regime that facilitates and regulates the development of offshore electricity infrastructure and technologies, including offshore wind, solar, wave energy projects and undersea interconnectors.

Proposed areas for offshore renewable energy projects

On 5 August 2022, the Minister for Climate Change and Energy Chris Bowen announced six proposed areas in Australian Commonwealth waters for offshore renewable energy projects. This is an important next step to enable the Minister to grant developers feasibility licences to investigate and plan future offshore wind and other projects within "declared areas".

The 60-day public consultation process for the first proposed area – off the coast of Gippsland in Victoria – has commenced. Next steps and details in relation to the remaining five proposed areas will be announced in due course.

The six proposed areas are:

1. Bass Strait region off the coast of Gippsland in Victoria;
2. Pacific Ocean region off the coast of Hunter in NSW; 
3. Pacific Ocean region off the coast of Illawarra in NSW;
4. Southern Ocean region off the coast of Portland in Victoria;
5. Bass Strait region off the coast of Northern Tasmania; and
6. Indian Ocean region off the coast of Perth/Bunbury, WA.

Public consultation on the Gippsland area

The Department has commenced a 60-day public consultation period on the possible effects of future offshore renewable energy projects in the Bass Strait off the coast of Gippsland in Victoria.

If the Minister is satisfied that the area is suitable for offshore renewable energy infrastructure following the consultation period, it may declare that it is a "declared area" under the OEI Act. This will enable the Minister to grant developers feasibility licences to investigate and plan future offshore wind or other projects within that "declared area".

Submissions on the Gippsland proposed area can be made through the Department's Consultation Hub, and are due by 7 October 2022.
 _{(source: https://www.dcceew.gov.au/sites/default/files/documents/Notice%20of%20Proposal%20to%20Declare%20-%20Gippsland.pdf)}

The purpose of the public consultation is to understand the potential impacts that future offshore renewable energy projects may have on other marine users and interests in the area, including (but not limited to):

• commercial and recreational fishing;
• natural environment and biodiversity of marine ecosystems;
• native title and Sea Country and the rights of traditional owners in the broader Gippsland region;
• existing titles and infrastructure associated with coal mining and electricity generation (e.g. offshore petroleum and gas); and
• tourism, defence, vessel traffic and weather radars.

Why it matters to you

This announcement gives further clarity to all interested stakeholders regarding the areas in which offshore projects will be permitted to be developed, and marks the commencement of the formal declaration process for the Gippsland area.

In anticipation of the Minister declaring the area off the coast of Gippsland as a "declared area" under the OEI Act, developers are encouraged to prepare their feasibility licence application and consider the impacts that their potential projects may have on other marine users and interests.