The development of an offshore wind farm off the coast of Western Australia’s South West region has encountered several challenges that may hinder progress and affect the potential benefits it offers. Initially, federal Energy Minister Chris Bowen approved a 4,000-square-kilometer wind farm project in Geographe Bay, near Bunbury, urging companies to apply for feasibility licenses. However, the interest appears to have waned, as the application deadline has been extended twice, now set for January 30.
Three companies, namely Oceanex Energy, Skyborn Renewables, and Alinta Energy, have decided not to pursue the project. Oceanex has redirected its focus to a similar, delayed project on the east coast, while Skyborn Renewables is pulling out of Australia entirely due to a review of its global operations. Alinta Energy also confirmed they will not apply for a license. Consequently, Oceanex’s Bunbury office was closed last November.
Federal opposition has promised to cancel the WA project if it comes into power, citing local community opposition. Despite these setbacks, at least four other developers have expressed interest in the project, although Copenhagen Energy and Ocean Winds have yet to comment on their plans. Jera and Floatation Energy did not respond to inquiries.
WA’s offshore wind zone is among six declared by the federal government in recent years, but it has progressed slower than others, particularly those in New South Wales and Victoria. Oceanex chairman Andy Evans attributed significant regulatory delays, or “green tape,” as a major obstacle to timely project development. He noted his disappointment but emphasized the high potential for jobs and skill development in the region.
Industry experts, like Tony Wood from the Grattan Institute, argue that the approval process for offshore wind projects is complicated and slowed down by overlapping state and federal regulations. Wood called for streamlined regulations to expedite the process, describing the current five to seven-year timeframe for approvals as “crazy.” Rising costs due to global inflationary pressures have further stretched budgets and timelines.
Nonetheless, Evans remains optimistic about the future of offshore wind in Australia, attributing current delays to the sector’s rapid initial growth. The federal energy ministry has reiterated its commitment to developing an offshore wind industry in Australia. Although the ministry did not address specific questions, it indicated ongoing efforts to work closely with industry proponents.
In summary, significant regulatory and economic challenges have hindered the progress of offshore wind farm development in WA. Nevertheless, optimism about the sector’s future remains, provided that regulatory issues can be resolved to streamline approval processes and reduce delays. The successful resolution of these challenges could position WA as a significant player in the renewable energy sector, with numerous benefits for the economy and job market.