Gippsland United split results in hard-fought clashes with Port Melbourne

A STUDY commissioned by offshore wind developer Star of the South has found Gippsland offshore wind could save a typical Victorian household $151 a year on electricity bills by 2040.

Critics say the modelling relies on optimistic assumptions and selective data.

The research by global consultancy Jacobs modelled the impact of having seven gigawatts of offshore wind in the grid off the Gippsland coast by 2040.

The study found offshore wind would reduce wholesale electricity prices by $5 per megawatt hour on average across the National Electricity Market between 2033 and 2040.

That figure rises to $15 per megawatt hour by 2040 translating to total wholesale savings of $5.2 billion.

The reduced need for new onshore transmission was the biggest contributor saving $4.9 billion in avoided capital costs and a further $1.2 billion in avoided operating costs.

Star of the South CEO Charles Rattray said offshore wind produced big benefits for the entire grid.

“Offshore wind is a steady hand which generates power most strongly during winter and evening peaks and when families need it most,” Mr Rattray said.

“Using Gippsland’s natural strengths can boost our energy security and prevent overusing our backup gas by 3.4 terawatt hours by 2040 saving $2.5 billion in fuel costs.”

Clean Energy Council chief policy officer William Churchill said offshore wind was a key part of the energy mix.

“Offshore wind would supply lots of electricity at dinnertime when lots of people are using it as well as creating thousands of jobs for tradies, concreters and truck drivers in Gippsland as coal hands over to clean energy,” Mr Churchill said.

Opponents have questioned the findings saying the report was prepared for Star of the South and relied on policy assumptions and future projections that were difficult to verify independently.

Critics said the study did not consider impacts on tourism or fisheries and excluded the cost of subsidies required for port infrastructure upgrades and transmission expansions.

They described the projected savings of about $1.60 a week per household as a marginal figure and called for independent transparent modelling with full disclosure of assumptions and excluded costs.

Victoria has delayed its first offshore wind auction to August 2026 after global costs for the technology rose by about 30 per cent.

Origin Energy has paused plans for an $8 billion offshore wind farm in Gippsland citing the timeline while Spanish company BlueFloat Energy abandoned one of Gippsland’s most advanced projects in 2025.

Farmers for Climate Action CEO Verity Morgan-Schmidt said Gippsland’s offshore wind zone was close to existing transmission in a region where coal was closing over the next decade.

“If offshore wind means we build less transmission and get projects built faster then great,” Ms Morgan-Schmidt said.

Star of the South is located off the coast of Gippsland on Gunaikurnai Country and would supply power for up to 1.2 million homes.

The project is targeting construction later this decade to help meet Victoria’s two gigawatt by 2032 offshore wind target.