The Australian energy company AGL has announced that it will not proceed with its proposed 2.5 GW Gippsland Skies offshore wind project in Victoria’s Gippsland offshore wind zone, off Australia. According to a company spokesperson, “AGL will prioritise options in its development pipeline of onshore wind, batteries, pumped hydro and gas-firming projects.” The project’s first phase had been expected to be operational by 2032.
Gippsland Skies is the third offshore wind project in the Gippsland zone to be abandoned in 2025. In October 2025, German developer RWE withdrew from the planned 2 GW Kent offshore wind farm, following BlueFloat Energy’s decision in July 2025 to cancel the US$10bn Gippsland Dawn floating wind project (ABC News Australia, 05/12/2025).
The Victorian government has set a target of producing at least 2 GW of offshore wind by 2032. However, a report from the Victorian Auditor-General’s Office tabled in Parliament recently warned that the state is unlikely to reach this target. The auditor added: “Under an optimistic scenario, Victoria could build 2 GW of offshore wind capacity by the end of 2033, but there is a risk of further delays.” (Victorian Auditor-General’s Office, 03/12/2025)
In September 2025, the Victorian government also postponed its first offshore wind auction, originally scheduled to launch that month, citing delays in the approval of feasibility licences and broader global market uncertainty.
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