A wind farm zone in Bass Strait, which could deliver half the current electricity demands of southeast Australia, has been scaled back after community feedback.
The federal government on Thursday announced the offshore development zone would span 7100sq km - about 30 per cent less than the original proposal.
The zone also includes a gap for a shipping lane and is now 30km offshore, 10km further from Tasmania's northern coast.
The re-scaling was in response to feedback from local groups, industry, fishers, unions and Indigenous people.
Some community groups had raised concerns about the visual impact of wind farms from Tasmania's coastline.
Developments in the zone could create up to 12,000 construction jobs and 6000 ongoing roles, Climate Change and Energy Minister Chris Bowen said.
"There are people who say it should be bigger or smaller ... we've struck a good balance," he told reporters.
"I am hopeful of strong interest (from developers).
"There is no offshore wind in Australia yet. It has existed since the early 1990s in Europe. It can and does co-exist with fishing."
Mr Bowen said any turbines would likely be more than 200m tall but "hardly seen" from land.
The zone could support up to 20GW of around-the-clock renewable energy, more than half the current power demand of southeast Australia, he said.
The federal government wants potential developers to prove their project would "deliver the most for Tasmania and Australia's energy security".
Developers have until March 12 to apply for feasibility licences and must demonstrate a commitment to local inputs and suppliers.
Mr Bowen said offshore wind was an opportunity to future proof existing industries like steel, cement and advanced componentry.
"The Tasmanian government welcomes the declaration of an offshore wind zone in commonwealth waters off the coast of northern Tasmania," state Minister for Energy and Renewables Nick Duigan said.
"Tasmania has some of the best wind resources in the world."
Bass Strait is among six identified priority areas for offshore wind in Australia, including Gippsland and the Southern Ocean in Victoria.
