Supporting Victoria’s offshore wind auction framework and industry activation
At a glance
Building on earlier advisory work for the Victorian Government, we continue to support the State in advancing its offshore wind objectives. By aligning procurement design with practical delivery considerations, we are helping to shape a robust framework that will underpin Victoria’s first offshore wind industry auction and support the State’s broader energy transition.
The challenge
The State of Victoria has set clear renewable energy targets as part of its commitment to meet net zero by 2050 and has identified offshore wind as a critical component of its future energy mix, offering large-scale generation capacity to support decarbonisation and energy security.
Turning these targets into deliverable projects requires careful coordination across policy, technical and commercial considerations. As the first Australian jurisdiction to advance offshore wind at scale, the Victorian Government faced the challenge of designing an effective procurement framework that could support viable projects while delivering public value.
The auction design needed to reflect real-world delivery considerations. This included transmission integration, upgrades to existing port infrastructure and realistic project delivery timelines. Commercial support arrangements required careful calibration to allocate risk appropriately, support investor confidence and maintain affordability for the State.
Beyond the immediate procurement process, the auction will influence the development of a broader sector in Victoria. The framework needed to encourage supply chain growth, support local industry involvement and build confidence in an emerging market. Integrated technical and commercial advisory capability was therefore essential to support the Government in developing a robust and balanced approach.
Our response
Following completion of the initial phase of work, also supported by GHD, that included comprehensive technical, environmental and infrastructure studies, we were engaged to deliver the next stage of the program. This phase focuses on the design and advisory services for Victoria’s offshore wind auction framework.
Working closely with the Victorian Government, we are providing integrated technical and commercial advisory support across the tendering process. Our role includes advising on technical documentation such as specifications, returnable schedules and evaluation inputs, alongside guidance on commercial and support agreement arrangements.
This integrated approach aligns technical parameters with commercial objectives while reflecting practical engineering and delivery considerations. It supports a procurement framework that is grounded in market realities and aligned with government policy objectives.
A central element of our role is advising on risk allocation. By assessing delivery risks and their potential impact on cost and timing, we help inform arrangements that protect public value while keeping projects financeable and feasible. This work brings together procurement design, market expectations, government objectives and engineering realities in a coordinated manner.
Our multidisciplinary team holds deep knowledge of the Australian energy and regulatory environment and draws on experience from established offshore wind markets internationally. This holistic perspective enables us to provide advice that is tailored to Victoria’s specific policy, infrastructure and market conditions.
The impact
Together with earlier work, GHD’s advice represents a structured and staged approach to building Victoria’s offshore wind sector, from early investment case development through to detailed procurement design and advisory support.
Victoria’s competitive offshore wind auction has commenced with a Request for Proposal (RFP) launch for an initial 2 gigawatts of capacity. This milestone represents a significant step in the State’s transition to renewable energy and the diversification of its energy mix.
Through our ongoing advisory role, we are supporting the establishment of a procurement framework that promotes transparent competition and credible developer participation. The framework is also designed to support broader outcomes beyond the auction itself, including the conditions needed to encourage supply chain engagement and local participation over time.
With Victoria’s RFP launch in August 2026, this work is helping to translate policy intent into practical, investable outcomes that support delivery confidence and long-term industry development.