Australia postpones first offshore wind auction over concerns about a lack of projects

Australia’s state of Victoria has indefinitely postponed its planned first auction to support offshore wind farms in Australia. The reason is said to be global investment difficulties in the offshore wind sector, which could lead to a low number of participants in the auction, according to state Energy Minister Lily D'Ambrosio. The international news agency Reuters reported.

The winning projects in Australia’s planned first auction to support offshore wind farms are set to receive a guaranteed strike price through two-way contracts for difference. According to D'Ambrosio, the ministry will announce a new date for the auction by the end of this year.

Ben Carrozzi, energy and infrastructure partner at law firm Norton Rose Fulbright, said postponing the auction would reduce the “risk of a rushed auction” seen in several markets.

Those markets include Belgium, which suspended an auction in the middle of this year for a planned 700 MW offshore wind farm in the North Sea, and Germany, where the latest auction ended in failure when not a single project submitted a bid.

Denmark has also faced difficulties, despite being one of Europe’s leaders in offshore wind. Not a single project submitted a bid in last year’s auction. The Danish government initially responded to last year’s failure by cancelling this year’s auction and promising to present a new auction design. This eventually happened in May.