What is the Star of the South offshore wind project and what has delayed it?

The Star of the South is a flagship 2.2-gigawatt offshore wind project in Victoria, Australia, critical to the state’s green energy transition. New regulatory documents show that full completion has been delayed until at least 2037 due to bureaucratic red tape, supply chain issues, and regulatory pushback.

Why is the Star of the South delay a major blow to Victoria's renewable energy targets?

Victoria has legislated targets of achieving 2 gigawatts of offshore wind power by 2032 and 4 gigawatts by 2035 to meet its overall 95% renewables goal. The Star of the South delay to 2037 casts severe doubt on the state's ability to hit these milestones.

When will the Star of the South begin construction and start generating electricity?

According to management documents, construction on the project is scheduled to begin in 2030, pending regulatory approvals. The project has a staged seven-year build timeline, but Chief Executive Charles Rattray noted the project aims to deliver "first power" to the grid by 2032.

What coal-fired power station closures are impacted by these renewable energy delays?

The delay directly threatens Victoria's grid reliability because it clashes with the scheduled retirements of major baseload coal generators. EnergyAustralia’s Yallourn power plant is due to close in 2028, and AGL’s Loy Yang A facility is scheduled for retirement in 2035.

How does the wind farm delay impact Victoria’s broader electricity grid and power demand?

The extended timeline severely intensifies pressure on Victoria's electricity grid at a time when power consumption is skyrocketing. Electricity demand from the state's booming data centre sector has almost doubled over the past 12 months.

What is the Electricity Entry Services Mechanism and how is it affecting the project?

The Electricity Entry Services Mechanism is a proposed federal and state government underwriting scheme designed to financially back and de-risk offshore wind farms. Ongoing negotiations and uncertainty surrounding this mechanism have repeatedly stalled developer investment.

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Flagship wind farm delay blow to Victoria's green goals

Written by Brie CarterPublished May 19, 2026, 10:16 PM

Victoria's transition to renewable energy has been dealt a major blow following revelations that the state’s flagship offshore wind project, Star of the South, will not be fully operational until at least 2037.

New regulatory documents reveal the 2.2-gigawatt project is scheduled to begin construction in 2030, pending approvals, with a staged seven-year build timeline.

The delay casts severe doubt over Victoria’s legislated targets of achieving 2 gigawatts of offshore wind power by 2032 and 4 gigawatts by 2035—milestones critical to meeting its 95% renewables goal and offsetting the planned closures of the Yallourn and Loy Yang A coal generators over the next decade.

Industry bottlenecks, including bureaucratic red tape and ongoing uncertainty surrounding the government's new Electricity Entry Services Mechanism underwriting scheme, have repeatedly stalled progress.

A crucial taxpayer funding auction was pushed back to August, with federal and state negotiations expected to delay tender outcomes until 2027.

Additionally, supply chain pressures persist after Commonwealth regulators previously rejected environmental approvals for a dedicated port facility in Hastings.

Despite the setback, Star of the South CEO Charles Rattray maintained the timeline reflects a maximum duration, noting the project aims to deliver "first power" by 2032.

While Energy Minister Lily D’Ambrosio insists the state remains on track, the extended timeline intensifies pressure on Victoria's grid, which is already grappling with local opposition to onshore infrastructure and skyrocketing electricity demand from a booming data centre sector.