The Victorian government announced last week that it will set a renewable energy target of 40% by 2025.
This will require 5400MW of Wind and Solar Energy Systems to be built over the next nine years.
Victorian Premier Daniel Andrews and Minister for Climate Lily D’Ambrosio announced the target will be achieved by reverse auctions similar to the reverse auctions held in the ACT. Currently only 14% of Victoria’s electricity comes from renewable sources, this increase of 26% will reduce the state’s electricity sector greenhouse gas emissions by 12% by 2035.
The Premier announced that the technology neutral auctions, as well as solar auctions, will see project developers compete to be the lowest cost. Successful bidders will be given long term contracts to support their projects which will provide certainty for investors.
By 2025 it is anticipated that up to 5400MW of new large scale renewable energy projects will be built in Victoria creating an additional 4000 jobs at the peak year of construction and bringing $2.5 Billion in investment to the state.
Lily D’Ambrosio stated “By making our scheme complementary to the Commonwealth’s Renewable Energy Target we are saving the RET. Investors have lost faith in the national target, but we are restoring the confidence needed to invest.”
The Leeson Group see this as a huge step forward for Victoria which will help achieve similar goals to both Queensland and South Australia.