Victorian Government Set Ambitious Target of 40% Renewable Energy by 2025

Marco Green
August 23, 2017

Premier Daniel Andrews and energy, environment and climate change minister Lily D'Ambrosio said today that legislation for Victorian Renewable Energy Targets (VRET) will be introduced into the Parliament this week, including for a 25% by 2020 renewables goal in addition to the 2025 objective.

The news came as part of legislation for the Victorian Renewable Energy Targets (VRET) that will be introduced in parliament next week.

"This is the policy certainties and the right policy that industry have been deeply searching for to make sure they can make the right decisions to invest", she told reporters.

Achieving this would cut the average cost of power for Victorians by around A$30 ($23.7) a year for households, A$2,500 ($1,974) a year for medium-sized businesses and $140,000 ($110,554) a year for large companies, while cutting Victoria's electricity sector greenhouse gas emissions by 16% by 2034-35, the government said.

The government also announced the winners of a tender to help build around 138 MW of new solar projects that will be used to power Melbourne's tram network.

The solar farm contracts for the tram supply continues the strong run of wins for French firm Neoen, which landed the three stages of the Hornsdale wind farm with the ACT government, the Tesla big battery with the South Australia government, and three solar farms in western NSW from the ARENA big solar tender. When it missed out on the ARENA funding, it complained at the time of not receiving support from the state government, unlike projects in NSW and Queensland.

The auction aims to procure power for the equivalent of 389,000 households, bringing AU$1.3 billion (US$1 billion) in investment and creating around 1,250 construction jobs over two years with 90 permanent jobs.

The Victorian Government's renewable energy auction announcement today is a major step forward for communities, businesses and the state's renewable energy industry, the Clean Energy Council said.

CEFC chief Ian Learmonth, who attended the announcements on Wednesday at Spring Street, said the VRET would create jobs and unleash capital.

Legislation for the Victorian Renewable Energy Targets (VRET) will be introduced in parliament next week. This reverse auction will be opened for bids in mid-October, targeting up to 550 MW of large-scale technology neutral renewable energy and up to 100 MW of large-scale solar power.

Other reports by Click Lancashire

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