After close to a year of feasibility studies, German utility RWE has decided to cease development of the Kent offshore wind project off the Gippsland coast in Australia.
This decision follows a review of the project’s competitiveness in current market conditions, as well as ongoing uncertainties around supply chain costs and the future design of the auction framework. It also comes after Australia decided to push back its first offshore wind tender.
The decision will solely affect the Kent offshore wind project, and the company will continue to develop, build and operate a diverse pipeline of renewable energy projects across Australia, including large-scale battery storage and onshore wind.
RWE is currently constructing Australia’s first 8-hour battery and forging ahead with the development of 3GW onshore wind farms, including the Campbells Bridge project in western Victoria.
“RWE remains strongly committed to Australia’s clean energy transition and to Victoria’s renewable energy future,” the company explained.
The 2GW Kent offshore wind farm was supposed to be located some 67 km off Australia and was set to become operational in the first half of the 2030s.
Australia’s Liberal Party said in a statement on Wednesday that the state’s offshore wind rollout has been a complete failure and placed the blame squarely on the minister for climate action of Victoria, Lily D’Ambrosio.
“The Labour government’s mismanagement of its offshore wind strategy has left Victorian households and industry paying higher energy prices. Investors need certainty and stability, not the chaos and poor decision-making that have defined the offshore wind development,” it stated.
