Winds of policy change in Australian Offshore Wind

Last month the Department of Industry, Science, Energy and Resources released a discussion paper outlining its proposed #regulatory framework for #offshorewind and other #cleanenergy technologies and associated #infrastructure in Commonwealth waters (i.e. beyond 3 nautical miles) including #Australia's exclusive economic zone. Read it here: https://consult.industry.gov.au/offshore-exploration/offshore-clean-energy-infrastructure/consultation/download

Consultation has commenced and submissions are due tomorrow (28 February 2020).

In our conversations with the Department, we understand that preliminary legislation is due to be released to the public in mid-2020, with rules and regulations to follow in early-2021.

The framework raises a number of questions:

• What lessons can be learnt from the offshore #oil and #gas industry (keeping in mind that what works for the oil and gas industry may not work for the offshore wind industry) – including on licensing and decommissioning?
• How will the proposed framework interact with existing laws including #environmental protection, underwater cultural heritage, navigation, protection of the sea, emergency management and health and safety – with a focus on standardization and harmonization?
• Will the framework be flexible enough to accommodate developments in technology including floating offshore wind?
• How will the relevant Minister balance competing interests when declaring an area suitable for offshore clean energy projects?
• How will interface between the new offshore clean energy regime and the existing offshore oil and gas regime be managed (e.g. overlapping tenure regime used for onshore mining and gas projects)?
• What grandfathering arrangements will apply to existing offshore clean energy exploration and/or development?

Australia has the advantage of being able to leverage from mature offshore wind markets globally. Our global and regional market-leading practice have advised (and are currently advising) on the most complex and significant deals in the market, including Formosa I (Asia's first commercial scale offshore wind project) and Formosa II.

Please contact us if you'd like to learn more.