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South Australia’s scrapped offshore wind projects in focus as election looms

The federal government wants offshore wind to play a significant role in Australia's energy future.

Posted on January 13, 2025

In short:

Two offshore wind projects in South Australia have been scrapped amid opposition to the sector.

Advocates say the state has strong potential for offshore wind.

What’s next?

The future of offshore wind will play a role in the upcoming federal election.

In 2022, two major offshore wind projects were announced in South Australia, offering a glimpse into what the future of renewable energy could look like.

Planned off the state’s south-east coast, they were touted as multi-billion-dollar investments which would help power local industry and homes.

But both projects have now been scrapped and any vision for wind turbines off the South Australian coast is gone — for now.

Offshore wind has taken off in other parts of the world, but remains a new industry in Australia.

For proponents of offshore wind, it’s a missed opportunity for South Australia.

But opponents say it’s a step towards protecting local industry and oceans.

Community backlash

The proposed Southern Winds project off the coast of Port MacDonnell, proposed by BlueFloat Energy, would have included 77 turbines off the fishing town’s coast.

The project was scrapped in 2024 when the Southern Ocean Wind Zone was finalised, and did not include its proposed location.

The news was welcomed by a majority of Port MacDonnell locals, where a strong community opposition group formed.

Chris Carrison was part of the community opposition to the Southern Winds project.

“Just from a visual aspect people were very scared about what was going to happen,” Southern Coast Ocean Care chair Chris Carrison said.

“We like to look at the ocean as it is. It’s the end of humanity, we look out there and see nature.

“Also, the potential for harm to the crayfishing and other fishing industries there was apparently huge.”

BlueFloat Energy held information sessions in Port MacDonnell in 2022 and the federal government held public consultation sessions on the proposed wind zone in 2023.

Both were well attended by locals in opposition to the plans.

The Port MacDonnell southern rock lobster fishing fleet is the largest in Australia.

“I think [BlueFloat Energy] were gobsmacked by the turnout and they were not aware of our existence,” Mr Carrison said.

“They were poorly researched and they didn’t know Port MacDonnell or the coastal communities existed at all.

“It was a smack in the face for everyone how it was handled communication-wise, which turned out poorly.”

BlueFloat Energy declined to comment.

The final Southern Ocean Wind Farm Zone excluded any waters off the SA coast.

SA says no

In November 2023, the South Australian government rejected a proposed offshore wind project off the coast of Kingston South East, put forward by Skyborn Renewables.

The project had the backing of the local council and, unlike the Southern Winds project, local fishers had raised fewer concerns about the location.

But Planning Minister Nick Champion said at the time offshore wind posed a risk to the environment and marine industries.

Peter Malinauskas has backed renewables but his government baulked at offshore wind.

Following the rejection, Skyborn Renewables altered its plans to move the proposed turbines wholly into Commonwealth waters, applying to the federal government for approval.

But those plans were pulled last year.

The SA government also opposed any waters off the SA coast being included in the Southern Ocean Wind Zone.

The Kingston District Council was in favour of offshore wind, hoping it would attract investment.

A spokesperson said the state aimed to be running off 100 per cent renewables by 2027, which could be achieved through solar, onshore wind and hydrogen.

“While the state government welcomes investment in on and offshore renewable energy, proposed projects must comply with the state’s environmental and planning provisions, as is the case with all other industries,” the spokesperson said.

SA has been a national leader in renewable energy, which is why University of Technology Sydney offshore wind expert Sven Teske was surprised the state was quick to reject offshore wind.

Sven Teske has helped build offshore wind industries around the world.

“It’s due to the fact it’s new so there’s no experience, there is some anxiety about impacts from offshore wind and anxiety over possible failures of this technology,” he said.

“In general, this is a misjudgement and I would say SA should reconsider offshore wind as a future technology.”

Election uncertainty

Elsewhere in Australia, six sites have been chosen as future offshore wind zones, with feasibility licences granted to the first batch of proposals.

Offshore wind is a key part of the Albanese Labor government’s future renewable energy plans, working in tandem with onshore wind, solar and hydro-electricity.

Chris Bowen identified offshore wind zones off the WA coast.

But the opposition has said it would look at tearing up at least some of the six offshore wind zones if it won the upcoming federal election.

Smart Energy acting chief executive Wayne Smith said if offshore wind was established as part of the nation’s electricity supply, more jurisdictions, such as SA, could jump on board.

“Politics always gets in the way, but the federal election will be done by May and the WA election will be over by March,” he said.

Mr Smith says the offshore wind industry is in a good place..

“Once they’re out of the way I think things will go from strength to strength.”

As Australia’s offshore wind sector grows, Dr Teske said both government and developer communication with communities needed to improve for there to be progress.

The Veja Mate wind farm is located off Germany’s northern coast.

“I’m from north Germany and the coastal communities there were at first very opposed to offshore wind,” he said.

“But they saw at the end the opportunity and there was a possibility it could exist with fishing and tourism.

“The advantages, both in terms of power generation and economic benefits without sacrificing ecology, is quite obvious and it’s why I think offshore wind is quite a good option.”

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