Bowen declares new offshore wind zone capable of hosting 20 GW, despite being shrunk and pushed out to sea

A week after the leader of the federal opposition pledged to scrap offshore wind zones and “rip up contracts” for gigawatt-scale projects, federal Labor has declared a new zone for development in the Bass Strait, north of Tasmania.

The new offshore wind zone – the sixth to be officially declared in Australia – will sit at least 30 km off Tasmania’s north coast and spans 7,100 km2, around 30 per cent smaller than originally proposed, and includes a “carve out” for a shipping lane.

Federal energy minister Chris Bowen says the declared zone was reduced in size and pushed further out from the shore in response to feedback from local leaders, industry, fishers, unions, First Nations people and community groups.

“We’ve worked hard to get this right. It’s a good thing, but it takes good management,” Bowen said on Thursday from Bell Bay, an industrial precinct on the Tamar River, north of Launceston.

“This has been open for consultation for a long time, and I have made changes, as I have with all the other zones in response to feedback, … but it’s still 7,100 square kilometres, which is a very big zone.”

Bowen says the Bass Strait zone could support up to 20 gigawatts (GW) of “round-the-clock” reliable renewable energy – more than half of the current electricity demand across southeast Australia.

“The Bass Strait has truly world-class wind resources, with sustained wind speeds of more than 8 metres per second,” the minister said.

“Harnessing this power and capitalising on Tasmania’s highly skilled workforce with decades of experience in engineering, logistics and infrastructure can provide energy security for Australian homes and businesses, future proof existing industry and power new green energy industries.”

The declaration of the zone opens the door for offshore wind proponents to apply for feasibility licences from now until March 12, 2025, which in turn allow prospective developers to assess the feasibility of installing turbines in the Bass Strait.

So far, the 2 GW Bass Offshore Wind Energy Project is being proposed for the zone by Australian start-up Nexsphere and Norwegian oil and offshore wind giant Equinor – and the Liberal Tasmania government has committed to supporting the giga-scale project once it is generating.

But the federal government has once again stressed that feasibility licences will only be awarded to developers who prove their project will deliver economic and community benefits, while meeting strict environmental and social licence standards.

“Feasibility licence applicants will need to show how they’ll work with commercial and [recreational] fishing, and they’ll need to get their environmental approvals separately,” Bowen told a press conference in Bell Bay.

“This isn’t something about tomorrow or the next day or next week, or even next year. It will take several years to get offshore wind up and running, because it’s a long process, and we’re starting from scratch.”

The reminder of the many layers of due process involved in establishing an offshore wind industry in Australia – a process set in motion by the federal Coalition back in 2021 – follows Peter Dutton’s pledge to “rescind” the declared Hunter offshore wind zone off the coast NSW if elected in 2025, and sink the $10 billion plans for the 2 gigawatt project proposed for development there.

“The decision that we’ve taken as a Coalition is to make sure that we rip up these contracts, to make sure that we make it very clear that we will not proceed with the offshore turbines as proposed by the Albanese government,” Dutton said from Shoal Bay exactly one week ago.

Dutton justifies this with the claim that Labor has shown “complete disregard” to the local Port Stephens, Newcastle, and Hunter communities and businesses, “in a desperate attempt to achieve their ideological target of a renewables-only electricity grid.”

The federal government notes that public consultation on the Hunter offshore wind zone, the first to be declared for NSW and the first to host floating offshore wind attracted just shy of 2,000 submissions over a 65-day period.

For its part, the Liberal Tasmanian government has welcomed the declaration of the Bass Strait zone – an area singled out as one of the nation’s top options for offshore wind energy generation by the Australian Energy Market Operator.

“An offshore wind industry can help our state maximise its potential as a green energy powerhouse, creating thousands of new jobs and cleaner, cheaper energy and contributing toward our nation leading 200 per cent by 2040 Renewable Energy Target,” said Tasmanian energy minister Nick Duigan on Thursday.

“Our 2030 Strong Plan for Tasmania’s Future is all about bringing on new energy generation to support the needs of Tasmanians, our growing economy, and the decarbonisation of our existing and future industries, including hydrogen.

“This zone will give proponents and investors confidence to progress Tasmanian projects.”