Australia has taken another step towards scaling offshore renewables.
The Federal Government today released draft guidelines for Research and Demonstration (R&D) licences in declared offshore zones.
The framework is intended to fast-track innovation, provide investor certainty, and pave the way for commercial offshore wind and other marine energy projects.
The licences will run for up to 10 years and are available across all six declared offshore areas. They allow proponents to test emerging technologies such as floating wind, wave and tidal devices, or to deploy monitoring equipment to assess wind and ocean conditions before pursuing a commercial feasibility licence.
Minister for Climate Change and Energy Chris Bowen said the scheme would help position Australia as a global hub for offshore renewable development.
“These Research and Demonstration licences are a big green light to domestic and international investors, signalling that Australia wants to be home to the next technological advance when it comes to offshore renewable development,” Bowen said.
According to the draft Offshore Electricity Infrastructure Licence Administration Guideline, an R&D licence permits holders to construct, install, operate and decommission offshore renewable energy infrastructure within a declared area, subject to the Offshore Electricity Infrastructure Act 2021 and associated regulations.
Applicants must demonstrate technical and financial capability, project viability, and suitability to hold a licence, with assessment criteria ranging from engineering expertise and funding plans to governance structures and past project performance.
The companion Registrar Forms Guidance details stringent application requirements, including detailed project development plans, risk registers, technology maturation plans, geotechnical survey data, stakeholder consultation strategies and financial statements.
Foreign investors will also need to comply with the Foreign Acquisitions and Takeovers Act 1975, with separate approvals from the Treasurer where required.
Licences are limited to areas already declared suitable for offshore renewable energy development, such as the Hunter and Illawarra zones, which together could host up to 8 GW of floating wind capacity.
Community consultation and First Nations engagement will form part of the approval process, and projects will be required to submit annual reports to demonstrate ongoing compliance with merit criteria.
The framework operates on a cost recovery basis, with application fees and levies charged to licence holders to cover regulatory administration. However, the Government has flagged potential reductions in fees to lower barriers to entry.
Public consultation on the draft guidelines is open until 3 October 2025, with feedback to shape the final licensing framework before applications are accepted.
More information is available here.