OFFSHORE WIND DEVELOPMENT POTENTIAL

AND OPPORTUNITES IN AUSTRALIA

GLOBAL OFFSHORE WIND SUMMIT TAIWAN

Andy Evans
CEO/Founder , Offshore Wind Australia
(Co-Founder, Star of the South)
13 October 2020
OVERVIEW OF OFFSHORE WIND INDUSTRY IN AUSTRALIA
• No formal regulatory framework governing or enabling offshore
wind in place at present aside from contractual rights for Star of
the South (below)
• Australian Government proposed regulatory framework and
legislation in Offshore Clean Energy Infrastructure Regulatory
Framework Discussion Paper released on 3 January 2020
(dealing only with sea-based rights) – legislation will be Offshore
Clean Energy Infrastructure to commence mid-2021
• Only 1 project being developed in detail pursuant to a pre-
existing Exploration Licence (Star of the South)
• Expected that new framework will encourage new
developments – likely enacted early 2021
• Huge opportunities for industry given need for developed and
new supply chain – potential for 10GW+ requires injection of
global investment, jobs and skillsets
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 STORY OF OFFSHORE WIND IN AUSTRALIA
• Star of the South Offshore Wind Farm project established in 2012
by 3 local Australian developers (of which I was one) by mapping of
site and analysis of physical characteristics and building of story for
societal and economic need for offshore wind
• Project introduced to Australian and Victorian Governments in
2015
• New investor, Copenhagen Infrastructure Partners (CIP), introduced
in 2017
• First exclusive development rights to progress an offshore wind
farm in Australia awarded on 29 March 2019 (Exploration Licence)
• Commonwealth Government proposed regulatory framework and
legislation (dealing only with sea-based rights) expected to be
enacted early 2021
• Large investment required with a few key players already here
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 OFFSHORE WIND LEGISLATION PROPOSED IN AUSTRALIA
• Offshore Clean Energy Infrastructure Act proposed to be in place by
mid-2021
• Two-phase process for commercial activities starting with offer of
Feasibility Licence (5-7 years duration to undertake exploration
activities, project design and consultation) and then Commercial
Licence (to construct, operate and maintain, then decommission)
• Developer-led site identification with application made to relevant
Minister who will then require consultation with Commonwealth and
State agencies and then make ‘Declaration’ that an area suitable for
applications on competitive basis
• Competitive applications then made by proponents for a Feasibility
Licence
• Feasibility Licence allows undertaking of exploration, project design and
stakeholder consultation activities for a period of up to 5-7 years
• If all conditions of a Feasibility Licence are met, the Feasibility Licence
holder may then apply for a Commercial Licence for 30 years operation
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EXISTING OFFSHORE WIND PROJECTS
• Star of the South Offshore Wind Farm
- Proposed 2GW+ project off the south coast of Gippsland,
Victoria
- Developed and owned by original Australian founders (of
which I am one) and CIP
- Holder of only Exploration/Feasibility Licence (awarded March
2019)
- Commenced detailed wind monitoring (Floating LiDAR)
November 2019 and geophysical work in Q2 2020
- Detailed design work and environmental approvals process
progressing
• One other proposed project (Pilot Energy’s 1.1GW Midwestern Wind
and Solar) announced in August 2020
• Other projects discussed but no public announcements at this stage
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KEY TO FUTURE OFFSHORE WIND PROJECTS
- Grid connection a priority in Australia
- Need to be close to large demand markets
- Key if politically supported (which it appears to be)
- Regional transition a key for new investment/jobs
(number of coal mines forecast for closure over next 30
years and unlikely to be replaced)
- Detailed design work and environmental approvals process
progressing and government recognition of need to
streamline processes
- New regulatory framework critical to encourage new
investment – has support of the key political parties
- Development of industry (local and international) critical
to show that projects can be delivered
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OPPORTUNITIES FOR INDUSTRY IN AUSTRALIAN PROJECTS
• New industry for Australia means that opportunities will be global
• Size of projects (2GW+, A$8b+) means that multiple large players and many
smaller players will be required to develop and deliver projects
• Many technologies, processes, etc are new to Australia so will be many
international leaders of key workstreams
• Strong demand for offshore wind projects globally and shortage of materials,
equipment, vessels, etc requires significant competition and need for
development = huge opportunities
• Development phase very detailed and not far off oil & gas expenditures in
certain cases given geotechnical, detailed environmental studies and timelines
involved
• Can leverage off similar projects – SunCable (10GW solar, 3,700km cable to
Singapore), Marinus Link (1,200MW, 200km+ subsea cable between Tasmania-
Victoria)
• Potential of Australian market (5GW+) means large investment required

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 NEXT STEPS FOR AUSTRALIA WITH OFFSHORE WIND
• Progression of regulatory framework with legislation expected by
mid-2021
• New framework expected to stimulate local and international
investors – many new enquiries made since release of Discussion
Paper on 3 January 2020
• Need to develop industry to be able to influence Australian and
State Governments and investors
• Mapping of industry capabilities and desire to be involved critical
to ensure offshore wind in Australia progresses quickly and
attracts investment capital rather than to other competing nations
also investing in offshore wind
• Offshore Wind Australia Conference – 4 March 2021 (Melbourne)

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 ANDY EVANS

CEO/FOUNDER

OFFSHORE WIND AUSTRALIA

www.offshorewindaustralia.com.au

ae@offshorewindaustralia.com.au

+61 400 018 087