The Victorian Labor government has pledged to invest $124.5 million in the proposed Victorian Renewable Energy Terminal at the Port of Hastings, as part of its efforts to kickstart an offshore wind energy industry.
The new chunk of funds were announced on Monday as part of the upcoming state budget and would be used to progress the Environmental Effects Statement (EES) process for the proposed Terminal, which went back to the drawing board after failing to gain federal environment approvals.
Based on the Mornington Peninsula, the Victorian Renewable Energy Terminal is proposed to become the first heavy-duty port of its kind in Australia, allowing the delivery and assembly of offshore wind turbine parts before they are transported out for installation.
A full EES process is already underway, with a community consultation plan published last month. Following planning approvals and environmental assessments, work building the terminal will be able to proceed.
Development of the Victorian Renewable Energy Terminal has long been shaping as a yardstick for whether the state Labor government can deliver on its promised offshore wind goals – a mission that is becoming increasingly time-critical ahead of the November state election.
The first round of feasibility licenses was awarded in April of 2024 to six potential offshore wind projects, a number which has since increased to nine, in pursuit of the Victorian government’s goal to build at least 2 gigawatts (GW) of offshore wind capacity by 2032, 4 GW by 2035, and 9 GW by 2040.
But the infrastructure to facilitate construction and connection of offshore wind needs to be in place in time for developers to build, and delays are not helping.
Original plans for the Victorian Renewable Energy Terminal were knocked back by the federal government in early 2024 due to “clearly unacceptable” environmental risks to the surrounding Western Port Ramsar wetlands.
In response, Victoria’s planning minister called on the Port of Hastings in late 2024 to prepare an EES that would assess alternative project layouts, designs, and approaches to avoid and mitigate effects on the wetlands and other habitats and species.
A set of “substantially modified” plans were subsequently re-submitted in early 2025 for assessment under the federal government’s EPBC Act.
Development of the Victorian Renewable Energy Terminal is not the only aspect that has been delayed, though, with the Victorian government announcing in September 2025 that it was delaying the first offshore wind tender.
The tender was announced in January to now be taking place in August of this year.
“Only Labor will build the offshore wind energy Victoria needs to power our homes and lower energy bills,” she said.
“Labor is investing in renewable energy – do the Liberals support it, or will they cut it?”
The Port of Hastings recently released its Draft 2055 Port Development Strategy (PDS) for public feedback, in which it suggested that the terminal would double the port’s annual shipping traffic.
