Senate committee endorses offshore wind bill, in hope it can help push out coal

A landmark bill that will enable offshore wind farms to be built in Australian waters for the first time – and clear the path for massive renewable export projects such as the Sun Cable solar farm in the Northern Territory – has been endorsed by a cross-party Senate sub-committee.

The bill was introduced by energy minister Angus Taylor last month, after some considerable delays. And although it falls short of what many in the industry were hoping for in terms of definitions and clarity, it is seen as a key stepping stone to start building the first offshore wind farms in Australia.

There are estimated to be nearly 20GW of offshore wind project proposals – all at early stage of development – and the Australian Energy Market Operator has identified several offshore wind zones that could accommodate up to 40GW of offshore wind.

Most projects are in their very early stage, with the most advanced being the 2.2GW Star of the South project,  although Alinta recently revealed it was looking at an offshore wind project of more than 1GW in scale.

Offshore wind is now being looked at because developments overseas have pushed the price down significantly, they may pose fewer environmental concerns, and they are seen by some as a ready replacement for the big coal generators due to leave the grid in the next decade.

However, there has been concern that any further delays in legislation will result in big international investors turning their attention to other parts of Asia.

The bill also clears the path for renewable export projects such as the massive Sub Cable project in the NT, which is looking at up to 20GW of solar, and more than 40GWh of battery storage, with most of it to be exported to Singapore via sub-sea cable.

A cross party committee noted the significant benefits of the new bill to Australia’s economy and “clean energy future”, and noted the widespread support of governments, developers, investors, unions, researchers, academics, environmentalists, communities and individuals.

However, it noted that the “operating” details of the bill had yet to be developed, and may not be ready until late 2022. eager to see the bills expeditiously enacted.

Labor lamented the government delays on the legislation.

“It had promised that ‘the legislative settings and framework aim to be in place and operational by mid-2021’.Instead, one of three necessary bills has not even been introduced, and the development of detailed regulations will take well into 2022,” they noted.

They also expressed concern about some of the health and safety aspects of the bill, and the problems that could emerge from workers having to deal with two different jurisdictions.