All hot air: Labor’s collapsing offshore wind industry

Described by Chris Bowen in November 2022 as “pivotal” to Australia becoming a “renewable energy superpower”, new data shows Labor’s attempts to create an offshore wind industry has met with cold hard reality, with taxpayers footing the bill to keep Labor’s pledge alive.

According to returned Opposition Questions on Notice, the Department of Climate Change, Energy, the Environment and Water, has conceded that not a single offshore wind farm has been completed in one of Labor’s six ‘priority areas’. To date, three of the six priority areas are yet to have any seven-year feasibility licenses granted.

A feasibility license is the precursor to a 40-year commercial license, and allows developers to test whether their project is viable. The six priority wind areas were announced in August 2022.

Priority areaStateDate of declarationNumber of feasibility licenses granted to date
GippslandVictoria19 December 20229
HunterNew South Wales11 July 20230
South OceanVictoria6 March 20241
IllawarraNew South Wales15 June 20240
Bass StraitTasmania12 December 20240
Indian Ocean off the Bunbury regionWestern Australia30 August 20243


In September 2025, the Government was forced to provide the offshore wind industry with “temporary financial relief” at a cost to the budget of $47.4 million over four years.

Chris Bowen conceded in his National Press Club speech last week, that “offshore wind has
faced structural constraints around the world which make starting the industry from scratch
harder than it would otherwise be.”

According to AEMO’s 2026 Integrated System Plan (ISP), released on 25 June, offshore wind
is now “two-thirds more expensive than onshore wind to build and connect.”

The CSIRO’s latest GenCost report, released on 15 July, concluded that “Australia is not likely
to deploy offshore wind before 2030 and therefore GenCost will continue to be required to
rely on global sources of offshore wind cost data until then.”

According to the Climate Change Authority’s latest 2025 Annual Progress Report,
“deployment of wind generation remains well below the required pace and will need to
almost quadruple to 5.2 GW per year – to stay aligned with the ISP trajectory (AEMO,
2025h).”

Chris Bowen confirmed at a press conference in May 2024 that establishing additional
offshore wind capacity “will play a role in our 2035 target.”

Shadow Minister for Energy and Emissions Reduction Dan Tehan said Labor’s offshore wind
plan was unraveling.

“The Albanese Labor Government has bet the house on offshore wind, with little to show
for it,” Mr Tehan said.

“With zero commercial licenses granted and zero offshore wind farms completed, Chris
Bowen has taken his Net Zero agenda literally.”

ENDS

Media contact: 
Phil Connole M | 0417 063 605

Printed, News Corp tabloids, Wednesday 5 August 2026