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flag AGL cancels 2.5-GW offshore wind project due to costs, impacting Victoria’s renewable goals.

flag AGL has abandoned its 2.5-gigawatt Gippsland Skies offshore wind project off Victoria’s coast, citing rising costs and economic viability concerns, making it the third major offshore wind project canceled in the region this year. flag The decision, which includes surrendering its development license, shifts AGL’s focus to onshore wind, batteries, pumped hydro, and gas firming. flag The move raises concerns about Victoria’s goal to achieve two gigawatts of offshore wind by 2032 and 95% renewable energy by 2035, especially after a critical auditor-general report questioned the state’s ability to meet targets. flag Despite the setbacks, nine offshore wind feasibility permits remain active in the area.

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