News | Headlines
AGL to abandon Gippsland Skies project
Australia Wind power
Energy company AGL has abandoned plans to develop the Gippsland Skies offshore wind project in Victoria. It is the third company this year to do so in the Gippsland zone, which hosts Australia’s first offshore wind cluster. AGL’s abandonment of its 2.5 GW project is raising fears about whether Victoria will meet its offshore wind target. AGL said it would be focusing ‘on other projects’.
The Victorian government is expected now to outline plans for an auction which would allow project proponents to bid for government support.
Gippsland Skies was one of 11 projects granted a feasibility licence by the federal government in the Gippsland offshore wind zone. “AGL will prioritise options in its development pipeline of onshore wind, batteries, pumped hydro and gas firming projects,” a company spokesperson said. The Gippsland Skies project was in the early feasibility stage when the decision was taken. It is believed that AGL’s decision was influenced by ‘challenges faced by offshore wind globally, including in the United States’. Gippsland Skies is the third Gippsland offshore wind project to be abandoned. In October, German company RWE abandoned its plans to develop the 2GW Kent offshore wind farm. That followed BlueFloat Energy’s decision in July to scrap the $10 billion Gippsland Dawn project, which had received major project status from the federal
government in November 2024. At the time, BlueFloat said it was not commercially viable to invest in the sector.
Victoria’s targets
The Victorian government has set a target to produce at least 2 GW of power from offshore wind by 2032. But a report from Victoria’s auditor general has been tabled in state parliament which warned that the state was unlikely to reach the target.
Victoria was due to hold an auction to allow
offshore wind proponents to bid for government support, but in September, Victorian Energy minister Lily D’Ambrosio announced that the state would not announce plans for the auction until at least the end of the year. Opposition energy spokesperson David Davis said the offshore wind roll-out had been mismanaged. “Last week the auditor general made it clear that offshore wind targets in Victoria would not be met, and he pointed to the risk of energy transition becoming disorderly,” Mr Davis said.
Ontario plans new power link with First Nations
Canada Transmission & distribution In November Stephen Lecce, Ontario’s minister of Energy and Mines, directed the Ontario Energy Board to amend Hydro One Networks Inc’s transmission licence to enable development and construction of a new priority transmission line between Bowmanville and the Greater Toronto Area. The proposed project is a new double-circuit 500-kV transmission line from the Bowmanville switching station to one of the Parkway transformer station (TS), Claireville TS, or Cherrywood TS. The project would include associated station facility expansions or upgrades required at terminal stations. The line is expected to be in service by the early 2030s.
In addition, the government has issued priority designation to this line and two other projects to meet growing energy demand: The reconductoring of a portion of Hydro One’s existing E8V/E9V 230 kV transmission
line from the Orangeville TS to the Essa TS, expected to be in service in 2027; A new double-circuit 230 kV transmission line from the Lauzon TS to the Lakeshore TS, including associated station facility expansions or upgrades required at terminal stations, is expected to be in service by 2032.
Hydro One will build the line in partnership with proximate First Nations who will have the opportunity to invest in a 50 % equity stake in the transmission line component of the project, through the company’s First Nation 50-50 Equity Partnership Model. “This designation marks another opportunity for Hydro One to invest in Ontario and partner with First Nations and communities to build a strong and secure electricity grid,” said David Lebeter, president and CEO of Hydro One. “The province continues to grow and we must act now to meet the needs of the future. Hydro One’s
6 | November/December 2025 |
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success is tied to Ontario’s success, and we thank the government for their support. We will continue to work collaboratively with partners to develop and build these critical lines.”
“The partnerships we build today are partnerships that will power future generations,” said Kelly LaRocca, chief of the Mississaugas of Scugog Island First Nation. “Hydro One continues to incorporate Indigenous knowledge and leadership from the start of all their projects, and we look forward to working together again. Our communities need safe, reliable energy, and together we are making that possible.” Ontario’s electricity demand is projected to grow significantly over the next 25 years. As identified in the Ontario government’s Integrated Energy Plan, expanding the province’s transmission system is critical to ensuring a reliable and adequate supply of electricity for southern Ontario.
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