The Australian Government has announced temporary measures to reduce financial and administrative burdens for offshore wind developers. The aim is to support investment in feasibility activities and reduce the risk of companies leaving the market during a critical stage of project development.
According to the government, offshore wind projects could deliver benefits including improved energy security, regional development, and job creation.
For the next two years, the following measures will apply:
- annual levies for feasibility and research and demonstration licences will be waived
- annual levies for transmission and infrastructure licences will be halved
- application fees for research and demonstration licences will be reduced from AUD 300,000 to AUD 20,000
- application fees for transmission and infrastructure licences will be reduced from AUD 300,000 to AUD 150,000.
Regulations to implement these changes are expected to be in place later this year. A review of the Cost Recovery Impact Statements is also underway to determine appropriate fee levels in the longer term. The review is being carried out by the Department of Climate Change, Energy, the Environment and Water, the Offshore Infrastructure Regulator, and the Offshore Infrastructure Registrar.
In addition, reporting requirements will be simplified, and licence holders will no longer need to demonstrate access to funds equalling 150% of projected costs for the coming year. The lower capital requirements are intended to reduce investment barriers for developers.
