A third offshore wind farm project in Australia’s Gippsland offshore wind zone has been abandoned, this time by AGL Energy.

According to reports from various Australian media outlets, the company said that it would not proceed with its 2.5GW Gippsland Skies offshore wind project.

The project was one of 11 projects in the Gippsland zone that were granted a feasibility license by the country’s government.

As it stands, AGL will abandon the proposal and focus on other projects, such as onshore wind, batteries, pumped hydro, and gas firming projects.

The decision to abandon the project, which was in its early feasibility stage, was influenced by the worsening situation globally in the offshore wind sector.

Gippsland Skies has now become the third Gippsland offshore wind project to be abandoned this year. In October, German utility RWE abandoned its 2GW Kent offshore wind farm while BlueFloat Energy dropped its $10bn Gippsland Dawn project, even though it received major project status from the federal government.

The Victorian government has previously set a target to produce at least 2GW from offshore wind by 2032. However, a report from the state’s auditor general in parliament revealed that such a target would be highly unlikely.