South Gippsland council warns ratepayers must not carry the offshore wind bill

SOUTH Gippsland Shire Council has warned the Federal and State Governments that ratepayers must not be left carrying the cost of Australia’s first offshore wind industry as bidding opens on the Gippsland auction.

The State Government announced the auction today, covering Victoria’s first two gigawatts of offshore wind generation, enough to power about 1.5 million homes, with bidding to close in August next year and contracts expected to be awarded in 2028.

Nine feasibility licences are already active in the zone, which the Australian Government declared in December 2022 as the first of its kind in the country.

South Gippsland and Wellington shire councils have called on the Commonwealth and Victorian governments to build a structured regional support and coordination framework before the industry moves from planning into delivery.

The councils want funding and resourcing for local government, investment in enabling infrastructure, workforce and housing planning, support for local businesses and supply chains and strong coordination between all levels of government and industry.

They warned that demand for workers, housing, roads, transport, planning services, waste management, emergency management and community facilities would be felt well beyond the individual project sites and that the costs should not be unfairly transferred to local ratepayers.

South Gippsland mayor Cr Nathan Hersey said the region would not accept the disruption of a new industry without a lasting share of its benefits.

“We simply do not support seeing the impacts of new industries without also seeing significant and ongoing benefits,” Cr Hersey said.

“Governments and agencies that are responsible for delivering this national energy transition must understand what will be required at the local level to make it successful and that keeping our people at the centre of decisions is the only way forward.”

Both councils said they would seek early engagement with the successful bidders and relevant agencies as the licensing process progressed.

“We welcome the successful proponents to continue to engage with Council and our community as we commit to work constructively with them from the outset,” Cr Hersey said.

The warning follows a year in which the industry has moved steadily closer to South Gippsland.

Star of the South, the most advanced project in the zone, lodged its environmental impact statement under the Environment Protection and Biodiversity Conservation Act in December, drawing on seven years of studies and 26 technical assessments.

The project has also bought the land where its cables will come ashore, renewed its Major Project Status with the Federal Government and signed an engagement agreement with Traditional Owners through the Gunaikurnai Land and Waters Aboriginal Corporation.

In June the State Government declared five onshore renewable energy zones along with a Gippsland Shoreline Renewable Energy Zone north-east of Woodside to host the underground cables linking offshore wind to the grid.

A similar landing point proposed for Waratah Bay was left off the map and Bass Coast and South Gippsland were largely excluded from the onshore zones, with the State Government saying more work was required on their suitability.

Wellington mayor Cr Cindy Madeley said offshore wind was a once-in-a-generation opportunity to attract investment and create local jobs.

“Gippsland has supported Victoria’s energy needs for generations, and we’re ready to play a leading role in Australia’s energy future - but we need the right support and investment around our communities to do it well,” Cr Madeley said.

“We need the right infrastructure, housing, workforce, services and local government resources in place before demand increases.”

“Our message is simple: we are ready to work with government and industry to make this opportunity a success, but Gippsland needs to be properly resourced to support it.”

Barry Beach Marine Terminal and Port Anthony have serviced the Bass Strait oil and gas fields for more than 50 years and have been identified as long-term operations and maintenance bases for the offshore wind industry.

The Star of the South project has proposed a Gippsland operations base at Barry Beach or Port Anthony supporting about 200 permanent jobs.