Victoria has opened the door to one of Australia’s biggest renewable-energy opportunities, launching its first offshore wind auction for projects capable of generating 2 gigawatts (GW) of electricity.

The scale is significant: the first round is expected to produce enough power to supply around 1.5 million homes each year and create thousands of jobs, particularly in Gippsland.

Companies now have until August 2027 to submit bids, with contracts expected to be awarded in 2028. However, the first offshore wind electricity is not expected to reach Victoria’s grid until 2035.

Why the urgency? Victoria is preparing for the retirement of coal while electricity demand is rising. The Yallourn coal-fired power station previously supplied 14.8% of Victoria’s electricity, creating a major gap in the state’s future energy mix.

Offshore wind could offer an advantage over traditional onshore wind. According to the Grattan Institute, onshore wind turbines typically generate electricity around 30–40% of the time, while offshore wind has the potential to operate at 50% or more.

Victoria has set an ambitious long-term target: 2 GW of offshore wind by 2032, 4 GW by 2035 and 9 GW by 2040.

The opportunity extends beyond electricity. The government expects the industry to create thousands of jobs and stimulate investment in regional communities. Gippsland also has an advantage because existing high-voltage transmission infrastructure from the coal industry can potentially be used for new renewable projects.

But the transition won’t be cheap or simple. Offshore wind costs more to develop than many other renewable technologies, projects take years to build, and investors still face uncertainty around government support mechanisms.

The message from Victoria is clear:

The next energy boom may not come from what’s beneath the ground but from what’s blowing above the ocean.