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German renewable energy developer RWE has ceased the development of the Kent offshore wind farm in Victoria, a move that follows the Australian government’s recent decision to push back its first offshore wind tender.
After close to a year of feasibility studies, RWE has decided to call off the development of the up to 2 GW Kent offshore wind project off the Gippsland coast in Victoria.
The site was about 67 kilometres off the coast and had an average water depth of 59 metres. The Kent offshore wind farm was expected to become operational in the first half of the 2030s.
“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. We want to be clear that this decision relates solely to the Kent offshore wind project,” said RWE.
In 2022, the federal government declared Gippsland as Australia’s first offshore wind zone, with the potential to deliver 25 GW of renewable energy.
Twelve projects received a feasibility licence, while BlueFloat Energy withdrew from the zone in July this year.
In September, the Victorian government announced that it had indefinitely postponed its first offshore wind auction.
The same month, the joint venture between Origin Energy and Renewable Energy Systems (RES) also put a hold on their 1.5 GW Navigator offshore wind farm in Australia. The developers announced that they would not participate in the state’s first round auction.
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