The energy targets will be introduced under the new legislation for Victoria Renewable Energy Targets (VRET). As per the new mandate, the state has a target of producing at least 25% of its energy from renewable sources by 2020.
As per the government, the VRET can reduce the average cost of power for Victorians by around $30 a year for households and $2500 a year for medium businesses and $140,000 a year for large companies, while resulting in a reducion of about 16% of Victoria’s electricity sector greenhouse gas emissions by 2034-35.
The government expects the competitive VRET auction for up to 650MW of renewable energy will help in generating clean energy for about 389,000 Australian households or enough energy to power Geelong, Ballarat, Bendigo and the Latrobe Valley combined.
It expects that the first auction can bring in as much as A$1.3bn ($1bn) of investment, creating 1,250 construction jobs over two years and 90 ongoing jobs.
Victoria’s government also announced the winners of a 138MW solar project tender to power Melbourne’s tram network.
Victoria Premier Daniel Andrews said: “More renewable energy means more jobs for Victorians – that’s why we’re setting these ambitious targets and promoting investment in this growing sector.”
“Renewable energy creates jobs, drives growth, and protects our environment – and most importantly, helps drive down power prices for Victorian households and businesses.”
Victoria Energy, Environment and Climate Change Minister Lily D’Ambrosio said: “The renewable energy sector will now have the confidence to invest in renewable energy projects and the jobs that are crucial to Victoria’s future.”
“Government investment will be capped to ensure the best value for money for Victorian taxpayers.”
