Australia’s energy landscape has undergone significant changes, with renewable energy sources playing an increasing role in electricity generation. In 2023, renewable energy accounted for 35% of the country’s total electricity production, the highest share on record. This included contributions from solar (16%), wind (12%), and hydroelectric power (6%). The expansion of renewable energy has been influenced by investments and government policies aimed at diversifying energy sources and improving grid resilience.
Wind energy has become a key component of Australia’s energy mix. As of September 2024, the country’s installed wind capacity stood at approximately 13.3 gigawatts (GW), contributing 13.4% (31.9 terawatt-hours) of total electricity production in 2024. While onshore wind farms have traditionally dominated the sector, offshore wind power is increasingly being explored as a potential option. The placement of wind farms, both onshore and offshore, takes advantage of the country’s wind resources, contributing to the overall stability and reliability of the energy grid.
Understanding the differences between onshore and offshore wind energy is important for assessing their respective advantages and challenges. Onshore wind farms are developed on land, often in agricultural areas where they can operate alongside existing land uses. Offshore wind power, by contrast, involves installing turbines in oceans or large bodies of water, where stronger and more consistent wind patterns can enhance electricity generation. As Australia considers the role of offshore wind power, factors such as installation costs, maintenance requirements, environmental considerations, and energy output efficiency will be key in determining its future development.
Overview of wind energy in Australia
Australia’s wind energy sector has expanded significantly over the past decade. As of December 2018, the country had 94 operational wind farms, delivering nearly 16 GW of wind generation capacity. At that time, wind energy accounted for 7.1% of the nation’s total electricity demand. By September 2024, wind power accounted for 13.4% of Australia’s total electricity generation.
Wind power plays a role in Australia’s broader energy strategy. The Australian Government’s Powering Australia plan aims to create jobs, manage energy costs, and support emissions reduction efforts by increasing the use of renewable energy. The government has set emissions reduction targets of 43% by 2030 and net zero by 2050. The expansion of both onshore and offshore wind power is expected to contribute to these objectives by diversifying energy sources and providing additional electricity generation capacity.
Several government policies and incentives have influenced the development of wind energy in Australia. The Renewable Energy Target (RET) is a federal scheme designed to support renewable electricity generation, setting a target of an additional 33,000 GWh of renewable electricity each year from 2020 to 2030. The Australian Renewable Energy Agency (ARENA) has allocated A$2.25 billion in funding to support renewable projects since 2021, attracting more than A$7.5 billion in additional public and private sector investment. The Clean Energy Finance Corporation (CEFC) has committed A$13 billion as of June 2023 to support renewable energy projects and innovation, including the Clean Energy Innovation Fund, which focuses on clean technology investments. These initiatives have encouraged investment in wind energy, including the development of offshore wind power projects.
Australia has a growing number of onshore wind projects, with several large-scale developments underway. The Golden Plains Wind Farm in Victoria, which is projected to be one of the largest in the southern hemisphere, has commenced electricity generation. Located 100 km west of Melbourne, the first stage of the project began supplying power to the grid following testing. When fully operational, it is expected to generate around 9% of Victoria’s electricity needs, with 215 turbines capable of powering 750,000 homes. In Queensland, the MacIntyre Wind Farm, a large-scale renewable energy project, has started supplying power to the national electricity grid. The initial connection includes 27 out of the planned 162 turbines, with the full project expected to provide electricity for approximately 600,000 homes.
Offshore wind power is also being developed. In December 2022, the Federal Government designated the Bass Strait off Gippsland as Australia’s first offshore wind zone. In March 2024, the Victorian government set a target of 2 GW of offshore wind power by 2032 and 9 GW by 2040. These developments reflect ongoing efforts to expand Australia’s wind energy sector and explore new sources of electricity generation.
What is onshore wind?
Onshore wind energy refers to the generation of electricity using wind turbines located on land. These turbines convert the kinetic energy of wind into electrical power, contributing to Australia’s overall energy supply.
Onshore wind farms consist of multiple turbines positioned in areas with suitable wind conditions. Each turbine captures wind energy through its rotor blades, which function similarly to an airplane wing or helicopter rotor blade. As wind moves across the blades, it creates a difference in air pressure, producing lift and drag. The lift force causes the rotor to spin, and this rotational energy is transferred via a shaft to a generator, where it is converted into electricity. The generated electricity is then transmitted through cables to an onshore substation, where the voltage is adjusted for integration into the power grid before distribution to homes and businesses.
Locations of major onshore wind projects in Australia
Australia has several large onshore wind projects that contribute to its electricity generation capacity. One of the largest is the Stockyard Hill Wind Farm in Victoria, with a capacity of 530 megawatts. The Moorabool Wind Farm, also in Victoria, has a capacity of 312 megawatts and became fully operational in 2022. In South Australia, the Hornsdale Wind Farm near Jamestown has 99 turbines generating a total capacity of 316 megawatts. The wind farm is located near the Hornsdale Power Reserve, one of the world’s largest lithium-ion battery storage facilities, which supports grid stability and energy reliability.
Integration of onshore wind into Australia’s energy grid
Onshore wind energy is part of Australia’s energy mix, supplying electricity to the grid through substations that adjust voltage for distribution. Wind power contributes to energy diversification and grid stability. Developments in energy storage solutions, such as battery systems, help manage fluctuations in wind generation by storing excess power for use during periods of low wind or increased demand.
Benefits of onshore wind in Australia
Onshore wind energy is one of the more established sources of electricity generation in Australia, offering advantages in cost, deployment speed, and economic impact. Its integration into the energy grid contributes to energy diversification and regional economic activity. While offshore wind power is gaining attention, onshore wind remains a widely used option due to its lower costs and faster implementation.
Lower installation and maintenance costs
Onshore wind power generally requires lower installation and maintenance costs compared to offshore wind. Constructing onshore wind turbines involves less infrastructure, as they can be built on land with existing transport and energy networks. Offshore wind power, by contrast, requires specialised foundations, marine construction equipment, and undersea transmission cables, making it significantly more expensive to install. Additionally, maintenance for onshore turbines is more straightforward, as technicians can access turbines by road rather than requiring boats and offshore equipment.
Faster deployment and installation
Onshore wind farms can typically be developed more quickly than offshore wind power projects or other large-scale energy sources. A typical onshore wind farm can be planned, approved, and operational within a few years, whereas offshore wind developments often require more extensive feasibility studies and permitting processes. The availability of existing road networks and grid connections can further accelerate onshore wind farm construction, helping to reduce delays. For example, the Gunning Wind Farm in New South Wales was completed in just over a year.
Job creation and economic impact
Onshore wind farms contribute to regional and rural economies by creating jobs during both the construction and operational phases. Many wind farms are located in sparsely populated areas, where they generate employment opportunities and provide additional income streams for landowners leasing their property for wind turbine installations. This economic activity can benefit local businesses and communities.
A survey conducted by Farmers for Climate Action found that 73% of Australian farmers support renewable energy projects, largely due to the financial benefits and economic stability they bring.
Energy transmission and grid integration
Onshore wind farms connect directly to the national grid, reducing the need for long transmission cables required by offshore wind projects. Offshore wind connections tend to be more expensive to construct and maintain, and they can experience greater energy losses during transmission. In contrast, onshore wind farms generally have shorter transmission distances, which can improve efficiency and help integrate wind energy into the broader energy mix.
Environmental and land use considerations
Onshore wind turbines generate electricity without producing direct emissions, contributing to the reduction of greenhouse gas emissions. The land surrounding wind farms can often continue to be used for agriculture, livestock grazing, or conservation purposes, allowing for multiple land uses.
Unlike offshore installations, onshore wind farms do not interact with marine ecosystems. However, careful site selection and environmental assessments are essential to mitigate potential impacts on local wildlife and habitats. For example, concerns have been raised recently about the visual impact of wind farms on scenic areas and potential harm to local wildlife, such as the endangered pygmy blue-tongue lizard.
Established technology and supply chains
Onshore wind energy benefits from an established industry in Australia. With over two decades of development, local manufacturers, logistics providers, and energy companies have built expertise and infrastructure to support wind projects. This established supply chain can help streamline future developments and reduce reliance on international imports.
What is offshore wind?
Offshore wind power refers to the generation of electricity using wind turbines located in bodies of water, such as oceans or large lakes. These turbines capture wind energy, converting kinetic energy into electricity. Offshore wind farms are typically positioned in areas with strong and consistent wind patterns, which can enhance power generation. The electricity produced is transmitted to shore through underwater cables and integrated into the energy grid for distribution.
Australia is in the early stages of developing its offshore wind power industry as part of efforts to expand its energy sources. In August 2022, the Australian Government identified six priority areas for offshore wind development, chosen based on wind conditions, proximity to high-demand electricity areas, existing transmission infrastructure, and port facilities.
One of the first designated areas is the Gippsland Offshore Wind Power Zone in Bass Strait, off the coast of Victoria. As of July 2024, twelve projects in this zone have been granted feasibility licenses, with a combined potential generation capacity of 25 GW – more than Victoria’s total electricity generation in the previous year. Additionally, the Southern Ocean region off Victoria has been identified for offshore wind development, with the Spinifex Offshore Wind Farm receiving a feasibility license for exploration.
Other proposed offshore wind power zones include areas off the Hunter and Illawarra regions in New South Wales, where EnergyCo is working with the Australian Government on project development. A designated offshore wind zone in Bass Strait, covering 7,100 square kilometers off northern Tasmania, has also been announced. This area has the potential to generate up to 20 GW of electricity, contributing to the energy supply in southeast Australia.
Benefits of offshore wind power in Australia
Offshore wind power offers several potential advantages as part of Australia’s energy mix.
Higher energy generation potential
Offshore wind farms benefit from stronger and more consistent wind resources compared to onshore installations, which can lead to higher electricity generation over time. The steadier wind speeds at sea contribute to a more predictable energy supply, which can complement other energy sources such as onshore wind and solar.
Reduced land use conflicts
By locating turbines offshore, these projects avoid direct competition for land with agricultural, residential, or commercial developments. This can reduce land use pressures and concerns about visual impact, as offshore wind farms are typically situated far from populated areas.
Proximity to high energy demand areas
Many of Australia’s largest cities and industrial centres, such as Melbourne and Sydney, are near coastlines. Offshore wind developments in these regions can reduce electricity transmission losses by generating power closer to demand centres, improving efficiency and integration into the grid. This proximity helps reduce transmission costs, improve grid integration, and accelerate the phase-out of coal and gas plants.
Contribution to a diversified energy mix
Offshore wind power has the potential to support Australia’s future energy needs by complementing other electricity generation sources. Its large-scale capacity could help stabilise supply by providing an additional source of power alongside onshore wind and solar energy.
Economic opportunities
The offshore wind sector presents investment and job creation opportunities across multiple industries. Large-scale projects attract private investment and generate employment in areas such as wind turbine manufacturing, marine logistics, and renewable hydrogen production. A single 2 GW offshore wind power project can require investment between A$8 billion and A$10 billion, with an estimated 1,200 jobs created during construction and an additional 600 roles for ongoing operations and maintenance.
Many workers in traditional power generation and maritime industries already have skills that are transferable to offshore wind, reducing the need for extensive retraining. The sector also requires a broad range of expertise, including project management, engineering, cable installation, mechanical trades, and marine operations. Additionally, policies encouraging the use of locally manufactured components may further strengthen domestic supply chains.
Environmental and wildlife considerations
While offshore wind farms have a lower visual impact than onshore installations, they require careful planning to mitigate potential effects on marine ecosystems. Considerations include possible interactions with marine life, migratory birds, and underwater habitats. Environmental assessments, real-time monitoring, and adaptive turbine placement strategies are among the measures used to reduce disruptions and support sustainable offshore wind development.
Developers of offshore wind projects must undertake extensive environmental assessments and obtain approval under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). Mitigation measures may include scheduling work outside of seasons for biologically important behaviours, use of noise reduction technologies such as bubble curtains during construction activities, reducing vessel speeds, and the use of marine mammal observers during survey works and construction.
The role of onshore and offshore wind power in Australia’s energy strategy
Integrating both onshore and offshore wind power provides a diversified approach to Australia’s energy strategy. Onshore wind farms offer a cost-effective and relatively quick-to-deploy energy source, particularly suited for regional areas with favourable wind conditions. Offshore wind power, with its higher capacity factors and proximity to major urban centers, has the potential to provide consistent electricity generation and contribute to overall energy security. Together, these energy sources can help balance supply and demand while supporting grid stability.
Strategic planning and investment in both onshore and offshore wind power are key to balancing cost, energy reliability, and long-term energy supply. Onshore wind remains a widely used and cost-effective option that contributes to electricity generation and regional economic activity. Offshore wind, while requiring higher initial investment, has the potential to contribute significantly to Australia’s energy mix as technological advancements reduce costs over time.
Collaboration between government entities and the private sector plays an important role in addressing regulatory considerations, supporting innovation, and ensuring that both onshore and offshore wind projects are effectively integrated into the broader energy system. This approach can help maintain a stable and adaptable energy infrastructure.