Onshore vs Offshore Wind Energy: What's the Difference?

Wind energy is playing an increasingly important role in Australia's transition to renewable electricity.

As more wind farms are developed across the country, you may have come across two terms: onshore wind and offshore wind.

Both use the same basic principle — converting the kinetic energy of moving air into electricity — but where the turbines are located creates important differences in how projects are designed, built, connected to the electricity grid and operated.

So, what is the difference between onshore and offshore wind energy? Which one is more efficient? And what role could each technology play in Australia's energy future?

What is onshore wind energy?

Onshore wind refers to wind turbines installed on land.

This is the most established form of large-scale wind generation in Australia. Onshore wind farms are typically located in areas with strong and consistent wind resources, including agricultural and rural regions.

Wind turbines use blades connected to a rotor and generator. As the wind turns the blades, the generator converts that movement into electricity.

The electricity is then transported through the project's electrical infrastructure and connected to the wider electricity grid.

Australia already has significant onshore wind capacity. According to the Australian Government's latest energy statistics, wind generated 14% of Australia's total electricity in 2025, with wind generation increasing by 21% compared with the previous year.

What is offshore wind energy?

Offshore wind refers to wind turbines installed in marine environments, usually in the ocean.

Offshore wind projects use many of the same basic technologies as onshore wind farms, but the marine environment changes almost every aspect of project development.

Turbines need to be installed on or secured to the seabed, or in deeper waters potentially supported by floating foundations.

Electricity generated offshore is transported through subsea cables before connecting to the onshore electricity network.

Australia has identified several areas for potential offshore wind development, including Gippsland in Victoria, the Hunter and Illawarra in New South Wales, the Southern Ocean, Bass Strait and the Indian Ocean off Bunbury in Western Australia.

However, offshore wind in Australia is still at an earlier stage of development than the established onshore industry.

Onshore vs offshore wind: the key differences

At a glance, the biggest difference is location.

Neither technology is universally "better".

The most appropriate option depends on the location, available wind resource, electricity demand, grid connection, environmental conditions, infrastructure requirements and overall project economics.

How does onshore wind work?

Onshore wind farms generally consist of multiple turbines connected through an electrical collection system.

The main components include:

Wind turbines

The turbines convert wind movement into electricity.

Foundations

Large foundations support the turbine towers and transfer structural loads into the ground.

Electrical infrastructure

Transformers, substations and electrical collection systems transfer electricity generated by individual turbines into the project's grid connection.

Roads and access infrastructure

Large turbines require significant components to be transported to site, meaning suitable roads and access routes are an important part of project planning.

Grid connection

Transmission infrastructure connects the wind farm to the wider electricity network.

This infrastructure can include overhead transmission lines, underground cables and substations depending on the project.

Onshore wind and agriculture

One of the distinctive characteristics of many Australian wind farms is their location within agricultural regions.

A wind project does not necessarily require all land within its project area to be removed from agricultural use.

In many projects, farming activities can continue around turbines and associated infrastructure, subject to landholder agreements and project requirements.

This can allow renewable energy generation to coexist with existing regional industries.

ACCIONA's MacIntyre Wind Precinct in Queensland is an example of this model.

The project is located across approximately 32,000 hectares in the Southern Downs and Goondiwindi regions, with agricultural activities continuing across parts of the project area. (ACCIONA MacIntyre Wind Precinct)

What are the advantages of onshore wind?

Onshore wind has several characteristics that have helped make it a major source of renewable electricity.

Established technology

Onshore wind is a mature technology with decades of global operating experience.

Lower infrastructure complexity

Construction on land is generally less complex than construction in a marine environment.

Easier access

Maintenance crews can typically access turbines using roads rather than specialist marine vessels.

Established supply chains

Australia and other markets have developed experience in turbine transport, civil construction, electrical works and wind farm operations.

Competitive generation costs

Onshore wind can provide large-scale renewable electricity at competitive costs in suitable locations, although project economics vary significantly depending on site conditions and infrastructure requirements.

What are the challenges of onshore wind?

Onshore wind projects also need to address important considerations.

These can include:

• land use
• biodiversity
• landscape and visual impacts
• noise
• cultural heritage
• road and transport requirements
• construction impacts
• transmission infrastructure
• community engagement.

Good project development requires these factors to be assessed from the earliest planning stages.

How does offshore wind work?

Offshore wind follows the same fundamental principle as onshore wind, but projects are designed to operate in a marine environment.

An offshore wind farm typically includes:

Offshore wind turbines

These can be substantially larger than many onshore turbines because offshore conditions can support very large machines.

Foundations

Fixed-bottom turbines are typically supported by foundations anchored into the seabed.

In deeper waters, floating platforms can potentially be used instead.

Subsea cables

Electricity generated by offshore turbines is transported through subsea cables towards the shore.

Onshore substations

Once electricity reaches land, additional infrastructure is used to transform and transmit it into the electricity grid.

Ports and marine infrastructure

Large offshore wind projects require specialist ports, vessels, cranes and logistics facilities to transport, install and maintain equipment.

This infrastructure requirement is one of the major differences between offshore and onshore wind.

Why can offshore wind turbines be larger?

One of the potential advantages of offshore wind is the ability to install very large turbines.

There are fewer physical constraints associated with transporting and installing extremely large turbine components at sea compared with transporting them along roads to an onshore site.

Offshore locations can also offer strong and relatively consistent wind resources.

Larger turbines can capture more energy from the wind, but they also require larger foundations, specialist installation equipment and more complex logistics.

The scale of the equipment means offshore projects need significant supporting infrastructure before construction can begin.

Is offshore wind more efficient than onshore wind?

Not necessarily.

Offshore wind can benefit from stronger and more consistent wind resources in suitable locations.

However, the amount of electricity generated by a project depends on many factors, including:

• wind speed
• wind consistency
• turbine technology
• turbine size
• availability
• maintenance
• grid constraints
• project design.

Offshore projects also face higher construction and operational complexity.

As a result, efficiency cannot be assessed simply by comparing whether a project is onshore or offshore.

The better question is how effectively a particular project converts its available wind resource into electricity while managing its technical, environmental and economic constraints.

Offshore wind in Australia

Australia has significant offshore wind potential because of its extensive coastline and strong marine wind resources.

The Australian Government has identified six priority areas for offshore wind development based on factors including wind resources, proximity to electricity demand, existing transmission and supporting transport and port infrastructure.

However, offshore wind remains a developing industry in Australia.

For example, the Illawarra offshore wind area in New South Wales was declared in June 2024. The declared area covers approximately 1,022 square kilometres and is at least 20 kilometres offshore. As of January 2026, no feasibility licences had been granted for the area.

Similarly, the Bass Strait offshore wind area in northern Tasmania was declared in December 2024. The area covers up to 7,104 square kilometres, but the Australian Government reported in January 2026 that a preliminary decision had been made not to award a feasibility licence.

These developments illustrate an important point: Australia's offshore wind industry is progressing through a staged regulatory and assessment process and should not yet be treated as equivalent to the country's established onshore wind sector.

Why is Australia interested in offshore wind?

Australia's transition to renewable electricity will require significant new generation capacity.

Offshore wind could potentially contribute to that transition because coastal areas can offer strong wind resources close to major centres of electricity demand.

This could be particularly relevant in regions where land availability is constrained or where offshore resources are located close to industrial demand and existing electricity infrastructure.

However, potential does not automatically mean a project will be developed.

Offshore wind projects require extensive environmental assessment, marine planning, community consultation, grid infrastructure, specialist ports and significant investment.

Onshore wind and Australia's renewable energy transition

For the foreseeable future, onshore wind is expected to remain a major part of Australia's renewable energy system.

The country's latest energy statistics show that wind already supplied 14% of total electricity generation in 2025, making it the second-largest renewable generation source after solar.

Australia's increasing renewable generation also needs transmission and storage infrastructure.

Wind farms are frequently located in regions with strong renewable resources but relatively low population density.

Connecting those projects to population centres therefore requires investment in high-voltage transmission networks.

ACCIONA's MacIntyre Wind Precinct

ACCIONA Energía's MacIntyre Wind Precinct is a major example of large-scale onshore wind development in Australia.

The 923 MW MacIntyre Wind Farm consists of 162 turbines across approximately 32,000 hectares in south-east Queensland. The project is being commissioned and includes transmission infrastructure connecting the wind farm to the electricity grid. (ACCIONA MacIntyre Wind Precinct)

The project began exporting its first renewable electricity to Australia's National Electricity Market in October 2024, marking an important milestone in its development.

The wider MacIntyre Wind Precinct is intended to support further renewable generation and energy storage development in the Southern Downs region.

MacIntyre and regional economic development

Large wind projects can also create economic activity in regional areas.

The MacIntyre project has generated significant procurement and employment opportunities across Queensland, supporting contractors, suppliers and local businesses.

ACCIONA reports that the project has delivered more than $680 million in local economic benefit through procurement of services, labour and materials from Queensland businesses. (ACCIONA MacIntyre Wind Precinct)

ACCIONA also operates a dedicated community platform for the MacIntyre project, providing information and a channel for local questions and feedback. (MacIntyre Wind Farm Community)

This is an important part of renewable energy development: projects need to work with the communities that host them.

Onshore wind vs offshore wind: environmental considerations

Both technologies have environmental impacts that need to be understood and managed.

Onshore wind

Potential considerations include:

• vegetation and habitat
• bird and bat interactions
• noise
• landscape and visual effects
• construction traffic
• land use
• cultural heritage.

Project design, environmental assessments and mitigation measures can help manage these impacts.

ACCIONA has previously documented measures at MacIntyre designed to reduce construction impacts, including recycled water use for dust suppression and other sustainability initiatives. (Sustainability at MacIntyre Wind Farm)

Offshore wind

Offshore projects have a different environmental profile.

Potential considerations include:

• marine ecosystems
• seabed disturbance
• marine mammals and birds
• commercial fishing
• shipping
• ports and coastal infrastructure
• underwater noise
• visual impacts
• subsea cables.

This is one reason offshore wind projects require detailed marine environmental assessments before construction.

Which has the lower environmental impact?

There is no universal answer.

The environmental impacts of a wind project depend on its location, scale, technology, construction methods and surrounding environment.

An onshore project may have advantages in one category and greater impacts in another.

The same principle applies offshore.

A responsible renewable energy project should therefore be assessed on its specific environmental and social context rather than assuming that one technology is automatically more sustainable.

Which is cheaper: onshore or offshore wind?

In general, offshore wind has historically required greater upfront investment than onshore wind.

The reasons include:

• marine construction
• subsea cables
• specialised vessels
• offshore foundations
• larger turbines
• port upgrades
• more complex maintenance.

Onshore projects can also involve substantial costs, particularly where major transmission infrastructure, difficult terrain or long-distance component transport is required.

Project cost therefore depends on location and design as well as whether the turbines are on land or at sea.

As offshore technology develops globally, economies of scale and larger turbines may improve project economics over time.

Australia's emerging offshore sector will need to develop its own supply chains and supporting infrastructure before large-scale commercial deployment becomes widespread.

Which type of wind energy is more reliable?

Neither onshore nor offshore wind produces electricity continuously.

Both depend on weather conditions.

However, offshore wind sites can benefit from stronger and more consistent wind resources than some onshore locations.

This can contribute to higher capacity factors in suitable locations.

Reliability in the electricity system should nevertheless be considered at the grid level, not just at the individual project level.

Wind generation can be complemented by:

• solar
• batteries
• hydroelectricity
• transmission
• demand management
• other dispatchable technologies.

The combination of these resources helps maintain a reliable electricity system while increasing the share of renewable generation.

Wind energy, storage and transmission

Australia's transition to renewable electricity is not just about generating more wind power.

The electricity generated needs to be delivered to consumers when it is needed.

That makes transmission and energy storage essential components of the renewable energy system.

Transmission

Transmission networks connect renewable generation in regional areas with cities and industrial centres.

ACCIONA and Genus are delivering HumeLink East, part of one of Australia's major new transmission projects.

The project includes approximately 459 transmission towers and more than 6,000 kilometres of conductor between Bannaby and Wondalga in New South Wales. ACCIONA HumeLink East

Energy storage

Batteries can store electricity when renewable generation is high and discharge it when demand increases or renewable output decreases.

This makes storage an increasingly important complement to both onshore and offshore wind.

As Australia's renewable share increases, the interaction between wind, solar, batteries and transmission will become increasingly important.

The future of onshore and offshore wind in Australia

Australia does not need to choose between onshore and offshore wind.

Both could have a role in the country's future energy system.

Onshore wind is already an established and scalable technology.

Offshore wind is an emerging option that could provide additional generation close to coastal demand centres and benefit from Australia's strong marine wind resources.

The balance between the two will depend on:

• project economics
• transmission availability
• wind resources
• environmental considerations
• community acceptance
• port and supply-chain capability
• government policy
• electricity demand.

The most effective energy transition is therefore likely to involve a combination of renewable technologies rather than relying on one source alone.

How ACCIONA is contributing to Australia's wind energy industry

ACCIONA has more than 30 years of experience in wind energy internationally and has developed, built, owned and operated wind farms in multiple markets.

In Australia, ACCIONA Energía's portfolio includes established onshore assets such as Mt Gellibrand Wind Farm in Victoria and major developments such as the MacIntyre Wind Precinct in Queensland. (ACCIONA renewable energy projects)

ACCIONA's experience extends beyond wind generation itself.

The wider Australian business also provides specialist engineering, mechanical and electrical, construction, water and transmission capabilities that support the infrastructure surrounding the energy transition.

This integrated capability is increasingly important as renewable projects become larger and more interconnected.

Frequently asked questions about onshore and offshore wind

What is the difference between onshore and offshore wind?

Onshore wind turbines are installed on land, while offshore wind turbines are installed in marine environments such as the ocean.

Is offshore wind better than onshore wind?

Not necessarily. Offshore wind can benefit from strong and consistent winds and allow very large turbines, but it is typically more complex and expensive to construct and maintain.

Is onshore wind cheaper than offshore wind?

Onshore wind has generally been less expensive to build than offshore wind, although project costs depend heavily on location, grid connection, infrastructure requirements and technology.

Is offshore wind being developed in Australia?

Australia has identified several areas for offshore wind development and has established a regulatory framework for offshore renewable energy. However, offshore wind is still at an earlier stage of development than Australia's established onshore wind industry.

How much electricity does wind generate in Australia?

Wind generated 14% of Australia's total electricity generation in 2025. Wind generation increased by 21% compared with 2024.

What is Australia's largest wind farm?

ACCIONA's 923 MW MacIntyre Wind Farm is one of the largest onshore wind farms in the Southern Hemisphere and consists of 162 turbines. The project is located in south-east Queensland. Learn more about MacIntyre

How long do wind turbines last?

Wind turbines are designed to operate for many years, with typical project lifetimes commonly measured in decades. The actual operating life depends on turbine design, maintenance, site conditions and decisions around refurbishment or repowering.

Can wind farms coexist with agriculture?

Yes. Many onshore wind farms are located in agricultural areas and can allow farming activities to continue around turbines and associated infrastructure, subject to project requirements and landholder agreements.

Does offshore wind work better than onshore wind?

Offshore wind can take advantage of stronger or more consistent marine winds in suitable locations, but offshore projects also involve significantly more complex construction, operations and maintenance requirements.

Does wind energy work without batteries?

Yes. Wind farms can generate electricity without batteries. However, as the share of variable renewable generation increases, batteries and other forms of flexibility can help balance supply and demand across the electricity system.

Onshore or offshore: two technologies, one energy transition

Onshore and offshore wind may look similar from a distance, but developing them involves very different engineering, infrastructure and environmental challenges.

Onshore wind is already an important part of Australia's electricity system and will continue to play a major role in the renewable energy transition.

Offshore wind offers another potential source of large-scale renewable electricity, particularly near Australia's coastal electricity demand centres, but its development will require further investment, planning, environmental assessment and supporting infrastructure.

The future of Australia's energy system is unlikely to depend on one technology.

Instead, wind, solar, batteries, transmission, hydro and other low-emissions technologies will need to work together.

At ACCIONA, our experience across renewable energy and infrastructure allows us to contribute to that transition from multiple angles — from large-scale wind generation to transmission, engineering and the infrastructure needed to connect Australia's renewable energy resources with the communities and industries that need them.

The question is not whether Australia should choose onshore or offshore wind.

It is how both technologies can contribute, in the right places and with the right supporting infrastructure, to a more renewable and resilient energy system.