The Victorian Government has announced a comprehensive strategy aimed at overhauling the state’s energy system, targeting an impressive 95 per cent renewable energy generation by the year 2035.
Titled “Cheaper, Cleaner, Renewable: Our Plan for Victoria’s Electricity Future,” the initiative seeks to pave the way for a more affordable and dependable renewable energy landscape, ensuring that both communities and businesses experience a smooth transition.
Transforming Victoria’s Energy Landscape
According to government officials, by 2035, Victoria’s electricity system will undergo a significant transformation. Electricity consumption is expected to rise by approximately 50 per cent or more, driven by a shift towards electrification in homes and businesses, alongside growing population numbers. In contrast, all of the state’s outdated coal-fired power stations will be decommissioned by that time.
Unlocking Renewable Energy Potential
To achieve the ambitious 95 per cent renewable energy target, the Victorian Government plans to unlock about 25 GW of new capacity, including rooftop solar installations, offshore and onshore wind, and energy storage solutions over the next ten years.
The detailed plan outlines existing policies and programmes designed to expand energy capacity while highlighting potential investment and job creation opportunities. It is estimated that around $35 billion in capital investment will be necessary, with the creation of around 59,000 jobs anticipated by 2035, supported by an expanded focus on training and apprenticeship programmes to develop a skilled workforce.
Progress in Renewable Energy Generation
Since 2014, Victoria has made remarkable progress, more than tripling its renewable energy share. Currently, the state generates 39 per cent of its electricity from renewable sources, surpassing the output of the remaining three coal-fired generators combined.
The path to achieving the 95 per cent renewable generation target will incorporate a role for gas-fired power, which is intended to support grid reliability and security. Typically, gas contributes between two to five per cent of Victoria’s total electricity generation each year.
Empowering Consumers and Communities
Households and businesses will continue to have the opportunity to lower their energy expenses through initiatives like Solar Victoria for solar installations and the Victorian Energy Upgrades programme for improved energy efficiency.
To make certain the advantages of this substantial investment in renewable energy are distributed fairly, VicGrid is working closely with landowners, local communities, and Traditional Owners regarding the planning and development of renewable energy infrastructure, including transmission systems.
Commitment to an Orderly Transition
The Victorian Government emphasises that a methodical transition is essential for maintaining energy reliability and keeping costs manageable as the state strives towards its lofty climate goal of net zero emissions by 2045.
Lily D’Ambrosio, the Victorian Minister for Energy and Resources, stated, “We will create an electricity system that is affordable, reliable, and secure for all Victorians. This consolidated plan ensures that community and industry interests are central to a well-structured transition.”
She added, “We are serious about this initiative. We’re making significant progress with our expansive renewable energy projects while fostering the right conditions for continued investment in renewables.”