Study Finds Offshore Wind in Gippsland Could Lower Household Bills by $150 and Reduce Transmission Needs
A Jacobs report indicates that developing one-third of proposed offshore wind capacity in Victoria's Gippsland zone could reduce household energy bills by $150 annually, avoid 900 km of new transmission, and decrease reliance on gas. The study compares scenarios with and without 7 GW of offshore wind by 2040, concluding that savings from reduced transmission and fuel costs make offshore wind a viable option despite higher capital expenses. The Victorian government targets 2 GW of offshore capacity by 2032, escalating to 9 GW by 2040.
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The Jacobs report reveals that building one-third of the offshore wind capacity proposed for Gippsland could save Victorian households $150 annually and avoid approximately 900 km of new onshore transmission, thus reducing gas dependence. The modeling includes a scenario with 7 GW of offshore wind by 2040 versus one without.
Despite higher initial costs, offshore wind is projected to lower overall system costs through reduced transmission investment and fuel expenses. The Victorian government targets offshore wind capacities of 2 GW by 2032 and 9 GW by 2040. The report suggests that offshore wind could reduce wholesale electricity prices, resulting in significant savings for households.
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